The former boss of the traditional German brand Opel, Michael Lohscheller (52), is drawn to Vietnam. In the private conglomerate Vingroup, he is to head the Vinfast Global auto division, announced the company on Tuesday. Lohscheller is said to be the Vietnamese markets, USA, Canada, France, Germany and the Netherlands and initially expand business in North America and Europe.
Vinfast is the first Vietnamese car brand, has ambitious goals with electric vehicles and has already built up a highly automated production facility. The largest shareholder in the Vingroup is the billionaire Pham Nhat Vuong (52). According to its own statements, Vinfast intends to launch three electric SUVs this year and next, after having already launched an e-bus model and six e-motorcycle models on the market.
Non-state conglomerate in communist Vietnam
The conglomerate Vingroup is one of the few non-state and predominantly privately owned conglomerates in communist Vietnam. Together with around 44,000 employees, the group operates real estate companies, supermarkets, clinics and hotels, but also manufactures cars and smartphones. Last year the group generated loudly Annual report a net profit of 165 million euros on sales of 4.05 billion euros.
From where Lohscheller will head the group’s auto division is unclear. Presumably, the 52-year-old is likely to stay in the USA more often in the future because Vinfast wants to open up this market with its new models. Vinfast also apparently wants to get involved in autonomous driving: a report by “Financial Times” According to Lohscheller’s new employer, he recently received a license to test largely self-driving electric cars on the streets of California. In the long term, according to the parent company, there are even plans to build its own factory in the USA.
Vinfast is also testing autonomous vehicles in California
Vinfast also seems to be open to an IPO via the merger with an already listed takeover company (Spac). Reported in late May Reuters, Vinfast got JPMorgan and the Deutsche Bank brought on board as a consultant. Vinfast could be valued at up to $ 60 billion in the first ever IPO of a Vietnamese company in the United States.
Such plans for a company are remarkable, especially since the neighbor, who is also ruled by communists, is remarkable China has increased pressure on the private sector in recent months. Tech companies such as Alibaba and finally the transport agent Didi had then lost considerable value on the stock exchange.
Connoisseurs often compare Vietnam with China 20 years ago, with a start-up economy driven by foreign investment that still mainly manufactures products from foreign companies. What Vietnam lacks, however, is a national champion who is ready to bring “Made in Vietnam” and recognizable goods from the country to the western world. This task could be taken over by the Vingroup: The Group’s annual report and the statements of CEO Nguyen Viet Quang suggest this conclusion.
Vingroup as the first national champion
As a key sector for the industrialization of the country, the auto industry is to play a prominent role. Vingroup is to develop a global car brand with Vinfast, said Le Hong Hiep, Senior Fellow at the ISEAS-Yusof Ishak Institute in Singapore, to the “FT”. The developing auto industry in the country is “also a symbol of the rise of Vietnam”. To achieve this goal, Vingroup founder Vuong will withdraw from some business areas.
Experts are already warning that the planned expansion in the US market with competitors such as Tesla and Lucid is anything but a self-drive. “Vinfast will face tremendous challenges entering the US market,” said Michael Dunne, managing director of Zozo Go, an automotive consultancy. “How do you intend to convince American buyers to give the new player a chance?”
Lohscheller, the new man at the helm of Vinfast, will have to find an answer to this. The man, who had been at the helm of Opel since 2017, stood out above all as a renovator of the brand in the new parent company PSA. When it comes to electromobility, he was not exactly a pacemaker. Lohscheller himself stated in a statement: “When I got the opportunity to join Vinfast, I was immediately enthusiastic about the growth opportunities.” He looks forward to expanding Vinfast and establishing it as a “global smart electric car company.”