Chaotic Launch of Vinfast In Germany
- Written by : Ashton G. Curran
- Date Published : 2023-04-16
- Date Updated : 2023-04-16
- Category / Tag : articles
The company had planned to deliver the first units of its electric SUVs VF 8 and VF 9 in 2022, but this has been postponed indefinitely due to chip bottlenecks in production and logistics problems.
Further problems for VinFast include the fact that the cars are not yet homologated for the European market, so they cannot be registered for use in the country.
The company has said it expects homologation to take place in the second quarter of this year, but it remains to be seen if this will happen.
Employees have also reportedly faced problems, with notifications of layoffs appearing on the online career network LinkedIn.
VinFast's top management has been accused of ignoring information about the German car market, with a "fear-driven culture" prevailing at the company and the management reportedly seeking "soldiers who just do what they are told." The company is part of Vingroup, a large private conglomerate, and its founder and billionaire Pham Nhat Vuong and his closest circle have been involved in almost all important decisions despite the lack of car expertise.
Despite the setbacks, VinFast plans to continue with its expansion in Germany.
The company is pursuing a "flexible strategy" to be able to quickly adapt to changes in the market, according to a spokesman.
The smaller models VF 6 and VF 7 are expected to be available for pre-order soon, with delivery set for the fourth quarter of this year.
The company plans to launch the VF 9 in Europe from the second quarter of 2024, but it is unclear when the VF 8 will be available for delivery.
The expansion of VinFast's sales network is also reportedly being delayed.
Although the company has signed 28 rental contracts, it initially plans to open just 16 small showrooms.
Seven more stores are expected to open in Germany in 2023.
Overall, VinFast's attempts to enter the German car market have been characterized by setbacks and delays.
The company faces a number of challenges, including chip shortages, logistics problems, and the need for homologation in order to register its vehicles for use in the country.
Additionally, the company's management culture has been criticized for its focus on obedience rather than innovation.