GM has announced a shift in its Vietnam strategy. The U.S. automaker will transfer its local Vietnamese operations to the country’s local auto manufacturer, VinFast.
VinFast is a newly created subsidiary of Vietnam’s largest private company in the country called Vingroup. The new automaker will debut its first vehicle(s) at the Paris Motor Show this year. Both VinFast and GM made the announcement of the operations transfer on Thursday.
The Vietnamese make will become the exclusive distributor of Chevrolet cars in the country, per the agreement, and the young automaker will utilize GM technology and licensing to build a global small car sold under the VinFast brand. GM will also become its “preferred automotive technology provider.”
Finally, GM will transfer ownership of the Hanoi manufacturing facility, dealership network, and employee base by the end of 2018.
Neither company disclosed how much the deal and partnership is worth.