Vinfast and GM signs landmark strategic partnership agreement
Vinfast and GM signs landmark strategic partnership agreement
General Motors (GM) and Vinfast signed a landmark strategic partnership agreement which will drive the long-term growth and expansion of GM’s Chevrolet brand and Vinfast in Vietnam.
As part of the alliance, Vinfast will become the exclusive distributor of Chevrolet cars in Vietnam. Using Vingroup’s unmatched domestic retail presence and the existing Chevrolet dealership network, Vinfast will drive the Chevrolet brand forward while rapidly expanding its own local operations and leading the Vietnamese automotive industry into a new era.
Vinfast will assume ownership of the GM Hanoi factory and will implement an investment programme to build an all-new, global small car licensed from GM and manufactured and sold under the Vinfast brand. The production of this vehicle is expected to begin in the first half of 2019, greatly increasing the capacity and output of the Hanoi plant and growing the manufacturing base of the dynamic Vinfast brand.
GM will become an automotive technology provider to Vinfast, opening potential pathways for future product sharing and technology transfer, and providing opportunities to drive both brands forward.
“Our vision is to build an automobile manufacturing eco-system that will include assembly plants, local automotive suppliers and dealers, and a string of supporting industries. Our plan is to launch a portfolio of five Vinfast vehicles in 2019 and this strategic partnership is integral to that,” said Jim DeLuca, CEO of Vinfast.
“The automotive industry is set to become a key growth engine for Vietnam’s economic development and we now have the strongest possible local partner in Vinfast to grow Chevrolet and drive our brand forward,” said Barry Engle, executive vice president and president of GM International.
“The GM-Vinfast strategic partnership will position the Chevrolet brand and dealership network for long-term growth in Vietnam by leveraging GM’s global scale and expertise and VinFast’s domestic strength and insight,” said Engle.
Vinfast and GM will work together to ensure a smooth transition for customers, employees, suppliers, dealers, and other stakeholders. The transfer date for GM’s Vietnamese operation—including the Hanoi plant, dealership network, and employee base—is expected to take place by the end of 2018.
Chevrolet customers will continue to receive services, parts, and warranty support from their local Chevrolet dealers. At the time of handover, GM Vietnam’s employees will continue their employment, only for the new owner, Vinfast.
