CompaniesVinFast Germany GmbHFollowFord Motor CoFollowGeneral Motors CoFollowShow more companiesAug 17 (Reuters) – Vietnamese electric-vehicle maker VinFast, which made a splash this week when its shares debuted on the Nasdaq, has stirred a mix of caution and interest among dealers with a recent change in how it will distribute its cars in the U.S. market.
The carmaker, which has shipped nearly 3,000 vehicles to North America since late last year, said on Tuesday it was changing its distribution model, which has been based on Tesla’s (TSLA.O) direct-to-consumer approach.
Now it wants to sell through dealers as well.
Several U.S. dealers contacted by Reuters are open to the idea, but said they need to hear more details about VinFast’s plans, including sales strategy, requirements for dealers, the company’s parts distribution plan and the vehicle warranty.
“Is there room for more brands? Yeah, there probably is. It’s just too early to tell,” said George Glassman, president of Glassman Automotive Group, which sells five automotive brands outside Detroit. “I’d need to see more before I could make an intelligent decision.”
VinFast made its U.S. market debut on Tuesday and shares soared, at one point giving the startup a market valuation of $85 billion – far higher than that of Ford (F.N) or General Motors (GM.N) at the time. Since then, VinFast shares have retreated, and were down 33.6% at $20 as of Thursday’s close.
As VinFast ramps up efforts, it faces tough tests. The new hybrid sales plan is just another challenge and the luxury carmaker is already talking to dealers.
“Opening our own stores is great but it takes a lot of time,” CEO Le Thi Thu Thuy told Reuters on Tuesday. “Joining forces with other partners to go faster has always been our nature.”
Officials at VinFast, which has opened 122 showrooms globally as of June with most in the U.S. West, said aside from direct-to-customer sales, the carmaker would partner with dealers to open new points of sale in North America and other global markets.
“We are currently defining the terms of this new model and discussing with potential partners. More details will be announced in due course,” Thuy said in a statement.
U.S. dealers said there are too many unanswered questions, including how VinFast will distribute parts needed to make repairs.
‘DEVIL’S IN THE DETAILS'”The dealer has to be concerned with their (own) reputation,” said Scott Fink, CEO of Fink Automotive Group, which owns VW and Subaru stores near Tampa, Florida. “If I sell a car to you and you can’t get a fender, you’re going to be pissed off at me. I’m not going to do that.”
“The devil’s in the details,” he added.
While Tesla has established itself as EV market leader, other startups have struggled to get off the ground, dealers said. On top of that, VinFast will be competing with established brands with their own EVs, including GM, Ford and Hyundai (005380.KS).
“The first thing you have to look at is are you going to be around in five years? That’s…
Source from www.reuters.com