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GM & VinFast sign auto strategic partnership

Released at: 21:12, 28/06/2018

GM & VinFast sign auto strategic partnership

Ms. Le Thi Thu Thuy, Vice President of Vingroup and Chairman of VinFast and Mr.Barry Engle, Executive Vice President and President, GM International were signing at the ceremony. Photo: VinFast

Strategic partnership to grow and expand GM's Chervolet brand and VinFast in Vietnam.

by Minh Do

General Motors (GM) and VinFast, a subsidiary of leading Vietnamese corporation Vingroup, announced a landmark strategic partnership agreement on June 28 that 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 in Vietnam. Using Vingroup’s unmatched domestic retail presence and the existing Chevrolet dealership network, it will drive the Chevrolet brand forward while rapidly expanding its own local operations and leading Vietnam’s automotive industry into a new era.

It will assume ownership of the GM Hanoi factory and will implement a significant investment program to build an all-new, global small car licensed from GM and manufactured and sold under the VinFast brand. Production of the vehicle will begin in 2019, greatly increasing capacity and output at the Hanoi plant and growing the manufacturing base of the dynamic VinFast operation.

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,” said Mr. Jim DeLuca, CEO of VinFast. "VinFast is pleased to be driving the rapid expansion of Vietnam’s domestic automobile industry. Our vision is to build an automobile manufacturing eco-system that will include assembly plants, local automotive suppliers and dealers, and a string of support industries. Our plan is to launch a portfolio of five VinFast vehicles in 2019 and this strategic partnership is integral to that. This partnership will act as a catalyst as we work tirelessly to bring our VinFast vision to life.”

“The automotive industry in Vietnam is set to become a key growth engine for economic development and we now have the strongest possible local partner in VinFast to grow Chevrolet and drive our brand forward,” said Mr. Barry Engle, Executive Vice President and President of GM International.

Chevrolet’s extensive national dealership network will continue to serve customers around the country and GM is actively working to expand its Chevrolet vehicle portfolio in Vietnam.  

“We are very excited about the opportunity to play a key role in developing the automotive industry in Vietnam,” said Mr. Engle. “The GM-VinFast strategic partnership will best position the Chevrolet brand and dealership network for long-term growth in Vietnam by leveraging GM’s global scale and expertise, married with VinFast’s domestic strength and insight.”

VinFast and GM will work closely together to ensure a smooth transition for customers, employees, suppliers, dealers and other stakeholders. The transfer date for the GM Vietnam operation - including the Hanoi plant, dealership network and employee base - is expected to be by the end this year.

Chevrolet customers will continue to receive service, parts and warranty support from their local Chevrolet dealers. At the time of handover, GM Vietnam employees will continue their employment under VinFast’s ownership of the company.

VinFast is a subsidiary of Vingroup - the largest private conglomerate in Vietnam - and targets producing vehicles with luxury designs, superior quality, and outstanding safety features. It has cooperated with international partners such as GM, BMW, Magna Steyr, AVL, Pininfarina, EDAG, Bosch and Siemens to develop motor cars that are Vietnamese, stylish, safe, innovative, and pioneering and meet all international standards in safety, quality, and reliability. The company plans to deliver a new sedan and SUV model in the third quarter of 2019 while small car, electric car, and electric bus models will be launched at the end of 2019.

General Motors Co. (NYSE: GM) holds leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Holden, Baojun, Wuling and Jiefang brands.

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