Wednesday, May 22, 2024

Was worth more than Volkswagen – car brand close to bankruptcy

For a short period last year, VinFast was the world's third most valuable car brand. But then the decline began. And now billions of kroner are being injected to avert bankruptcy.

The Vietnamese car brand VinFast has serious pocket pain.

Owner and founder Pham Nhat Vuong is now coming to the brand's rescue with a capital injection of one billion dollars, equivalent to 7 billion Danish kroner.

That's what Automotive News writes.

This happens after a period when the car brand's stock has plummeted. Right now, one VinFast share costs just $2.6. In August 2023, the same share could not be had for less than $89.

READ ALSO: Classic Race is resurrected in Jutland – celebrity becomes director

Which meant that the brand, when taking the number of shares into account, was worth more than Volkswagen, Mercedes, General Motors and Ford.

However, VinFast does one thing really badly. The brand has a really hard time selling cars. Especially in the US, which Nhat Vuong is otherwise heavily betting on, things are looking bad. So bad that VinFast buys its own cars just to get rid of them.

The vast majority of the 11,300 cars that VinFast sold in the first half of 2023 had the same buyer. Namely a taxi company owned by VinGroup. Which is the same company that owns VinFast.

The revealed documents and sales figures that the United States Securities and Exchange Commission is in, already back in September of last year. Read more about it here .

In a fashion with investors the other day, Nhat Vuong nevertheless described VinFast as the future of his group. At the same time, he was told that 'a closure is not a theme at all'.

VinFast also plans to build more factories. Two of them in the US and one in India. The factory, to be located in North Carolina, will cost a staggering $2 billion to build.

Read more exciting news from and about the world of cars right here!

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