RESEARCH TRIANGLE PARK – VinFast has had a blowout in its plans to begin electric vehicle sales in the U.S. and builds a production plant in Chatham County.
According to a spokesperson for the Vietnam-based company, VinFast laid off 60 U.S.-based workers and another 38 workers based in Canada. The moves were made as a part of the consolidation of its emerging North America operations. And the layoffs included the chief financial officer of that group, even as the company prepares for a possible listing of its stock.
A spokesperson for VinFast told WRAL TechWire on Wednesday that the “consolidation doesn’t affect the factory plans in North Carolina.”
The firm is in the process of constructing a $4 billion automotive assembly and electric battery plant in Chatham County.
Bad news mounts
The job cuts is the latest bad news for the electric vehicle manufacturer.
Just a week ago, VinFast also said it was delaying customer delivery of the first vehicles imported into the U.S.
Two weeks ago, VinFast said it was consolidating its U.S. and Canadian operations into one group.
“We are consolidating our operations of VinFast US and VinFast Canada into VinFast North America to drive increased efficiency in the use and allocation of resources, while improving VinFast’s operational and financial performance,” said the spokesperson for the company. “We also collaborate with a range of local service providers to optimize business efficiency as well as increase the quality and responsiveness of our customer service.”
The consolidation move was announced on January 25.
“The planned consolidation does not affect VinFast’s commitments to its customers in delivering product quality excellence and high service standards,” the company said on Jan. 25. “VinFast will still retain existing legal entities in Canada and the US for product distribution and service activities in these markets.”
But in its report Bloomberg said the job cuts are “raising questions about the health of the Vietnamese company ahead of a possible stock listing.”
Reuters also reported the layoffs as VinFast “grapples with a stalled shipment of its first cars and prepares for a potential stock listing.”