VinFast’s Franchise Pivot: Can Traditional Dealers Save Its U.S. Ambitions?

IRVINE, Calif. – September 17, 2026 — Vietnamese electric vehicle manufacturer VinFast announced today a critical expansion of its North American sales and service network, finalizing franchise agreements for three new dealerships in Redondo Beach and Tustin, California, as well as Philadelphia, Pennsylvania. Scheduled to begin operations this month, the new locations will handle sales, warranty support, and comprehensive maintenance for the automaker's VF 8 and VF 9 electric SUVs.

On the surface, the announcement reads as a standard corporate milestone—a burgeoning automaker planting its flag in key coastal markets. However, a deeper analysis of the company's current U.S. footprint reveals that this expansion is less about aggressive conquest and more about a vital, defensive pivot. As the broader electric vehicle market cools and consumer skepticism lingers, the manufacturer is racing to overhaul its retail strategy, stabilize its supply chain, and reassure wary American buyers through traditional automotive partnerships.

The Franchise Strategy Shift

When the automaker first arrived in the United States, it adopted a direct-to-consumer playbook heavily inspired by Tesla. The company leased premium, high-rent retail spaces in upscale California shopping centers, attempting to build brand cachet through boutique mall showrooms. But the reality of exorbitant overhead, restrictive direct-sales laws in other states, and slower-than-anticipated inventory turnover forced a strategic retreat.

The closure of several company-owned mall stores has been accompanied by a concerted effort to recruit third-party franchised automotive dealers. By shifting to a franchise model, the manufacturer offloads the heavy burdens of floor-plan financing, localized marketing, and physical service overhead to veteran retail operators.

Interestingly, while today's press release trumpets the arrival of the three new dealerships, it notably omits the names of the retail auto groups or franchisee entities backing them. This lack of disclosure stands in stark contrast to the company's initial franchise rollout in early 2024, which proudly touted partnerships with established entities like Leith Automotive Group and Principle Auto. The anonymity suggests that while the physical locations are secured, the brand may still be working to build public confidence among the industry's premier retail networks.

Brian Finnerty, CEO of VinFast North America, framed the expansion as a cornerstone of the brand's evolution. "Our vision is clear: VinFast is continuing to build for the next phase of growth by investing in the customer experience, strengthening our team, continuously enhancing our products, policies, and sales and service network," Finnerty said in the release. "This is more than an expansion of our network. It is a long-term commitment by VinFast to the U.S. market as we enter our next chapter of growth."

Behind the Global Numbers: A Tough U.S. Reality

Finnerty's optimism must be weighed against the stark realities of the American automotive landscape. Globally, the manufacturer presents a narrative of explosive growth, reporting 196,919 EV deliveries in 2025—a 102 percent increase over the previous year. Yet, a closer look at registration data indicates a profound disconnect between global output and U.S. market penetration.

The overwhelming majority of the company's global volume is absorbed domestically in Vietnam, with a significant portion purchased by Green and Smart Mobility (GSM), an EV taxi and rental operator founded by Vingroup Chairman Pham Nhat Vuong. In North America, the numbers paint a much more sobering picture. Federal regulatory filings and industry registration trackers reveal that cumulative U.S. sales of the midsize VF 8 from its 2023 launch through 2025 hovered between 6,300 and 9,300 units. The larger, three-row VF 9 has seen even slower adoption, recording only low three-digit registrations in its first few months on the market.

Without access to the $7,500 federal clean-vehicle tax credit for purchases—a consequence of the vehicles being assembled in Hai Phong, Vietnam—the brand has relied heavily on the IRC Section 45W commercial clean vehicle credit loophole. This allows the company to pass the incentive through to consumers via heavily subsidized lease programs, sometimes dropping monthly payments below $250. While this strategy moves metal, it raises questions about the long-term sustainability of the brand's retail pricing power.

Service Bottlenecks and the CPO Gamble

The promise of "comprehensive maintenance services in line with global standards" at the new dealerships highlights one of the most critical hurdles facing the automaker: aftersales support.

Unlike legacy competitors with vast networks of Master Parts Distribution Centers across North America, this newcomer's supply pipeline remains tethered to its Southeast Asian production hub. Consumer portals and independent repair specialists have documented prolonged wait times—often ranging from four to twelve weeks—for structural replacement parts, wire harnesses, and high-voltage sensors following minor collisions.

"You can open all the service bays you want in Southern California," noted one automotive supply-chain analyst speaking on the condition of anonymity. "But if the replacement body panel is sitting on a container ship in the Pacific Ocean, the customer is still going to be stuck driving a rental car for two months."

Further complicating the service narrative is a history of federal scrutiny. The brand has navigated several notable recalls, including a massive software remedy for its Advanced Driver Assistance System (ADAS) that affected every VF 8 sold in the U.S. due to erratic steering corrections, as well as physical recalls for improperly deploying airbags.

To combat the resulting brand skepticism and the steep depreciation that plagued early model-year vehicles, the company is aggressively pushing its newly expanded Certified Pre-Owned (CPO) program. Officially launched over the summer and recently bolstered with sub-3 percent financing incentives, the CPO program offers the transferable remainder of a 10-year/125,000-mile vehicle warranty and a 10-year/unlimited-mile battery warranty. By setting a price floor for incoming off-lease vehicles and offering unparalleled warranty coverage, the automaker is attempting to shield its new franchise dealers from taking balance-sheet write-downs on trade-ins while simultaneously reassuring second-hand buyers.

Headwinds Beyond the Showroom Floor

As the company cuts ribbons in Redondo Beach, Tustin, and Philadelphia, it is simultaneously fighting high-stakes battles far from the showroom floor.

The most pressing of these is unfolding in a North Carolina courtroom. In May 2026, the state filed a lawsuit to reclaim a 1,977-acre megasite after the automaker failed to meet initial job creation thresholds and vertical building milestones. The $4 billion manufacturing plant, originally slated to open in 2024, has been pushed back to 2028 or later, with targeted employment scaled down drastically. This delay is more than a public relations black eye; it deprives the company of domestic manufacturing status, effectively locking its vehicles out of consumer purchase eligibility under federal IRA clean vehicle credits for the foreseeable future.

Financial markets have reacted accordingly. After a brief, irrational surge that saw its market capitalization eclipse $190 billion in late 2023, the company's stock has stabilized near $3.10 per share. With a Price-to-Sales ratio sitting below 2.0x and persistent operational losses, the North American enterprise remains heavily reliant on capital infusions from its parent conglomerate, Vingroup.

The transition from boutique mall storefronts to traditional franchise lots is a necessary evolution for a brand trying to anchor itself in the world's most competitive automotive market. For now, the addition of new showrooms in California and Pennsylvania provides a vital physical foothold. Yet, the ultimate test will be whether the automaker can synchronize its ambitious retail footprint with the unforgiving realities of American automotive logistics, regulatory scrutiny, and consumer expectations.