VinFast, the Vietnamese automaker, has once again hit a rough patch in its international expansion efforts. One of their electric SUVs caught fire while on display in a showroom in Germany, causing significant damage to both the vehicle and the showroom itself. According to a report by the German publication Kölnische Rundschau, the fire broke out at a VinFast showroom in Cologne’s Rudolfplatz area on Monday afternoon, and local officials believe it started near the frunk of the vehicle and spread to the showroom. The report does not specify which model of VinFast’s vehicle was involved.
VinFast had been looking to begin deliveries in North America last year, but faced several setbacks that delayed those plans. The company’s underwhelming range rating from the EPA caused delays, and VinFast eventually had to increase the range slightly through a software update. The company then had to deal with competition from Tesla’s massive price cuts, which forced VinFast to lower their prices and abandon their battery subscription plans.
See also: Vinfast opens first showroom in USA
Despite these challenges, VinFast began deliveries of their VF8 electric SUVs in California earlier this month. The company shipped 999 of these vehicles to the US last year, but has only delivered 45 so far. In an effort to streamline their operations, VinFast consolidated its US and Canadian operations into VinFast North America, resulting in several job losses.
The recent fire in Germany is yet another hurdle for VinFast to overcome as they seek to establish themselves as a player in the global automotive market. We reached out to VinFast for more information about the incident, but have not yet received a response.
See also: VinFast to Begin US Delivery of VF 8 City Edition EVs on March 1, 2023
In the words of automotive industry analyst Michelle Krebs, “It’s never good for any automaker to have a vehicle catch on fire, particularly when the company is trying to enter a new market and build credibility. It’s a setback, but not insurmountable.” VinFast will need to respond quickly and effectively to this setback if they hope to continue expanding their operations outside of Vietnam.
