Vietnamese electric vehicle (EV) manufacturer VinFast is preparing to shut down all its showrooms and service centres across Europe by the end of this week, in what appears to be a significant shift in strategy as the company moves away from its direct sales model, according to a report by German news outlet Elektroauto-News.net.
The outlet, citing two internal sources, reported that around 90% of VinFast’s European staff were informed of their dismissal in early May. An internal meeting held on 2 May reportedly confirmed a timeline that includes a showroom shutdown on 9 May and severance agreements to be finalised by 22 May. The liquidation of assets and termination of lease contracts is expected to follow in the second quarter.
See also: VinFast Reports Surge in Deliveries and Revenue for 2024, Driven by Global Expansion
VinFast attributed the decision to “macroeconomic conditions, tariffs, trade disputes and general uncertainty.” According to an internal document cited by Elektroauto-News.net, “The ongoing uncertainty makes it impossible to continue – the direct sales model no longer works.”
When VinFast launched in Europe, it had followed a Tesla-style direct-to-consumer sales approach. The closure of company-owned outlets marks a retreat from that strategy, with the company now planning to rely on retail dealerships instead. The report suggests a small number of remaining employees will transition to work with new dealer partners, though no specific names or locations have been disclosed. VinFast declined to comment on the changes.
See also: VinFast Lowers Prices on EV Models, Phases Out Battery Rental Service
The strategic reversal mirrors similar developments in the United States. As noted in its 2024 annual report, VinFast plans to close its 38 direct sales locations across 16 U.S. states and adopt a franchise dealer model instead. The company has also stated it is initiating efforts to establish a “widespread dealer network across major cities in Europe,” although the current status of that rollout remains unclear.
VinFast has faced mounting financial pressure despite growing sales volumes. The automaker delivered approximately 97,400 EVs in 2023—nearly triple the prior year’s figure—but most of those sales occurred in Asia. The company generated roughly $1.8 billion in revenue in 2023 but reported a net loss of about $3.18 billion for the year.
