The automotive market is vast and large while also being small. At one time you wouldn’t have thought of domestic brands being part of other markets in the world, and it took a bit of time before the imports that we see today gained a foothold in the US. Today, there are plants for nearly every automaker in every market in the world and a variety of brands work together to make the vehicles that we drive, regardless of the country we live in.
Turing Over the Chevrolet Operations
GM has owned a factory in Hanoi, Vietnam for many years and has sold Chevrolet vehicles that are built in this factory in the country. Starting in 2019 this factory will be turned over to VinFast with full ownership going to this Vietnamese company to allow the company to begin to build vehicles that bear its name. VinFast will be the sole company that will distribute the Chevrolet brand vehicles in the country, and by offering the models at VinFast dealers, the Chevrolet name could grow in Vietnam to an increased level of success and sales.
VinFast will produce small cars under a GM global license starting in 2019 and while we don’t know the value of the deal, this will be a huge win for both VinFast and Chevrolet. GM believes this will be the best way to position the Chevrolet brand and make use of the dealer network in order to realize long-term growth of sales and profits in the country. This marriage allows VinFast to offer its domestic strength to the deal while GM brings the global expertise to make it an easy win for both sides.
The Change Takes Place
Those employees of the Hanoi plant won’t have to worry, the transfer includes the plant, the dealer network, and the employee base to give VinFast a strong starting point for the vehicles it will build and create. Once this change takes place, the Chevrolet vehicles that are offered in the country will be imported as the VinFast team will work to launch a portfolio that will include five vehicles in 2019. This company isn’t working slowly either, VinFast has already announced it has begun to build a $1.5 billion factory in the northern part of the country which will aid in the speedy growth expected to meet the demand of more vehicles.
The plans for the VinFast portfolio include a sedan, an SUV, a small car, an electric car, and an electric bus. The sedan and SUV will be offered by the third quarter of 2019 while the rest of the lineup will be in place before the end of the year. With the strength of the GM support and the vision to build and grow the system that includes suppliers, dealers, and assembly plants in the country, VinFast is well on its way and should help the Chevrolet brand achieve greater sales and success in the future by offering the dealer network where the bowtie brand is sold.