VinFast and General Motors (GM) announced Thursday a landmark strategic partnership agreement aimed at driving long-term growth and expansion for GM’s Chevrolet brand and VinFast in Vietnam.
General Motors (GM.N) has agreed to transfer its Vietnamese operation to VinFast Trading and Production LLC and distribute Chevrolet cars through the local carmaker, in a move that could help drive up its modest sales in the country, reported Reuters on June 28.
|The signing of strategic partnership agreement is expected to drive long-term growth and expansion for GM’s Chevrolet brand and VinFast in Vietnam.
As part of the alliance, VinFast, a subsidiary of Vingroup, will become the exclusive distributor for the Chevrolet brand in Vietnam. Using Vingroup’s unmatched domestic retail presence and the existing Chevrolet dealer 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 GM’s Hanoi factory, and will implement a significant investment programme to build an all-new, global small car licensed from GM which will be manufactured and sold under the VinFast brand. Production of this vehicle will begin in 2019, greatly increasing capacity and output at the Hanoi plant and growing the manufacturing base of the dynamic VinFast operations.
GM will become a preferred automotive technology provider to VinFast, opening potential pathways for future product sharing and technology transfer, and providing opportunities to drive both brands forward.
“We are incredibly excited about the opportunities presented by this landmark announcement,” VinFast CEO Jim DeLuca said. “VinFast is pleased to be driving the rapid expansion of Vietnam’s domestic automobile industry.”
“The GM-VinFast strategic partnership will best position the Chevrolet brand and dealer network for long-term growth in Vietnam by leveraging GM’s global scale and expertise, married with VinFast’s domestic strength and insight,” said Barry Engle, executive vice president and president of GM International.
The transfer, which includes GM’s Hanoi plant, dealer network and employee base, is expected to be conducted by the end of 2018, the companies said in the statement.By Phung Nguyen