VinFast Has Officially Entered The Dealer Game

Happy Wednesday! It’s December 27, 2023, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, all in one place. Here are the important stories you need to know.

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1st Gear: VinFast Has A Dealership Now

Most modern automakers are eyeing the direct-to-consumer route for selling cars — why should some dealership make all that middleman profit when the manufacturer could just as easily absorb it? VinFast, in traditional VinFast fashion, is doing the opposite: Expanding its once D2C-only offerings into a traditional dealer structure. From Reuters:

HANOI, Dec 28 (Reuters) – Vietnamese electric vehicle (EV) maker VinFast has launched its first partnership with a U.S.-based dealer, North Carolina-based Leith Automotive Group, its latest effort to ramp up sales in the United States market, the two companies said.

In an interview with Reuters in August, VinFast’s global chief executive said the company was changing its distribution model, which had been based on Tesla’s direct-to-consumer approach, to a “hybrid” one that included dealers.

North Carolina is home to a $4 billion VinFast manufacturing plant that is expected to start commissioning from 2026.

Aside from a sale point, Leith will be in charge of all repairs, maintenance and parts needed for VinFast vehicles, according to the joint statement.

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Last month, the EV maker said it had received 70 dealer applications across the United States, which if approved would allow VinFast to distribute its EVs through 125 points of sales nationwide.

Were I that dealer, I’d be more concerned about the “repairs, maintenance and parts” side of the dealer formula. Traditionally, that’s the big moneymaker for them, but here it could serve up plenty of frustration. Time will tell how well it goes.

2nd Gear: Two Senators Want Teslas Recalled For Steering Faults

Reuters wrote a bombshell report on Tesla reliability last week, claiming the manufacturer blamed individual drivers for structural problems with the vehicles. Now, the United States Senate has gotten hold of the report, and is asking that Tesla get its act together. From Reuters:

Dec 27 (Reuters) – Two U.S. senators have written to Elon Musk, Tesla’s top executive, calling on him to “swiftly” recall any steering and suspension parts that pose a safety risk.

The letter cites “an alarming” Reuters investigation published on December 20 that exposed how Tesla has blamed drivers for frequent failures of components it has long known were defective.

“We write with extreme concern following recent reporting about Tesla’s knowledge of safety flaws in its vehicles and concealment of the causes of these flaws from the National Highway Traffic Safety Administration,” states the letter, which is signed by Senators Richard Blumenthal, of Connecticut, and Edward J. Markey, of Massachusetts.

The senators call on Musk to correct “apparent false and misleading representations” made to the safety agency.

The Reuters report found that Tesla told NHTSA and customers that the frequent failures of defective parts in its electric vehicles were caused by driver “abuse,” such as hitting a curb. In 2020, Tesla gave that explanation in a letter to the safety agency explaining why it would not recall a suspension part called the aft link in the United States, despite having just recalled it in China.

Markey has been a big proponent of right-to-repair laws, making him an interesting sort of car guy in government. He may not have Diamond Joe’s very public love of Corvettes, but he still seems deeply interested in our little corner of the world.

3rd Gear: Toyota Is Still On Top

Despite what the stock market may tell you, no one sells more cars than Toyota. The biggest, best-selling automaker in the world seems like it’ll defend its title once more, and end 2023 with more sales than any competitor. From the Detroit News:

Toyota Motor Corp. is poised to keep its title as the world’s best-selling carmaker, beating Volkswagen AG for the fourth consecutive year after steady demand across North America and Europe helped sales and production reach new records in November.

Global sales — including that of subsidiaries Hino Motors Ltd. and Daihatsu Motor Co. — rose 12% from a year earlier to 986,262 units, the most ever for the month of November, the company said Wednesday. Worldwide production reached an all-time high at 1,067,446 units.

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Nissan’s production rose 27% year-on-year to 317,233 units in November, including an 83% increase in China to more than 88,000. Global sales climbed 24%.

Honda’s global production rose 27% 414,429 units, rising most prominently in North America and China. Domestic sales rose 13% to 58,263 units, it said Wednesday.

Toyota also saw sales in China climb 17% to 164,524 units, while production there rose 14%.

Toyota’s biggest percentage rise in sales came from EVs, but the company is going to have to expand its offerings there if it wants to dominate that segment. If my recent conversation with a Lyft driver about his bZ4X is anything to go by, the automaker may have to improve its current offerings too.

4th Gear: Kia Continues Stadium-Buying Onslaught, Soon All Stadiums Will Be Named Kia

Not so long ago, Kia bought out the naming rights to the Lakers arena out on the west coast. Now, it’s bought out the naming rights for the Orlando Magic’s home court. Soon all will be Kia, and Kia will be all. From Automotive News:

Kia now has major entertainment venues bearing its name on both U.S. coasts.

The South Korean automaker replaced Amway as title sponsor for the home of the NBA’s Orlando Magic in December. The 18,846-seat arena is now called the Kia Center.

The venue, opened in 2010, will have new indoor and outdoor signage, electric vehicle charging stations, Kia vehicle displays and a hospitality lounge called the Kia Terrace.

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Kia said central Florida is its fastest-growing market in the country.

The deal comes less than two years after Kia bought the rights to the former Los Angeles Lakers arena that’s now called the Kia Forum. The automaker called that arrangement a “transformational step” for its U.S. business and said it helped propel the launch of its EV6 crossover.

I for one welcome our new Kia overlords. I’m imagining a sort of cyberpunk megacorp situation here, but rather than Arasaka or Militech we get a world where everything is branded Kia. There are worse logos to end up seeing every day, I suppose.

Reverse: I Mean, It’s No “Twister”

Neutral: What’s Your New Years Resolution?

I’m gonna get myself a dentist, a primary care provider, maybe even go wild and get an eye doctor who can update my glasses prescription. Then, I can use that prescription to get glasses that haven’t been run over by a motorcycle and bent back into place by hand. Real lofty goals this year.