US Bank named VinFast’s preferred financier in US

U.S. Bank has been selected as EV manufacturer VinFast ’s preferred retail financing and leasing provider in the U.S. as the OEM plans to open more storefronts in the U.S. U.S. Bank will provide financing and lease contracts for the vehicles at the OEM’s store locations and through the company’s website, according to a VinFast release. The EV company boasts a lineup of four eSUV vehicles — the VF6, VF7, VF8 and VF9 trims — according to its website, and has 10 showrooms in California. VinFast plans to open more showrooms in California and across the U.S., according to the release. “U.S. Bank was selected by VinFast to be their preferred lender based on [the bank’s] expertise in auto lending, our marketing experience working with OEMs … and our ability to deliver a digital-first finance and leasing experience and product,” David Hollodick, senior vice president, strategic business development director at U.S. Bank, told Auto Finance News . Private-label deals Only a handful of automakers lack their own in-house captive, making the private label market that much more competitive. Chase Auto, for one, has seven private label deals and was the private label provider for Mazda Motors until Toyota Financial Services inked a deal with the Japanese OEM in 2020. Santander Consumer USA, too, took over as the private label provider for Mitsubishi in March 2022. Ally Financial previously provided Mitsubishi with private label financing for seven years. New, direct-to-consumer EV manufacturers represent opportunities for lenders to increase their private label business. Bank of America in June 2022 landed a private label deal with Lucid Motors to supplement its deal with Volvo Car, and will also be providing financing for Polestar , a Volvo subsidiary. Chase Auto signed Rivian Automotive and Fisker Auto in January 2021 and March 2022, respectively. The Minneapolis-based lender will have the first chance to review and make decisions on all credit applications that come through VinFast dealers and its website, Hollodick said, noting U.S. Bank will service all contracts originated by the bank. “Once U.S. Bank acquires a finance or lease contract originated by VinFast as the dealer, all servicing branding will be U.S. Bank,” he said. Under the partnership, U.S. Bank expects to be VinFast’s primary financing and lease contract supplier, Hollodick said. Promoting s ustainability The partnership will encourage an environmentally sustainable future, Hollodick said. “Supporting the adoption of EV ’ s and a transition to cleaner energy is a core strategy for U.S. Bank,” he said. “U.S. Bank has been a leader in financing and leasing EVs, so we know clean energy and a sustainable future is a priority for many of our clients.” VinFast’s VF8 and VF9 models are available for reservation exclusively to consumers in California , while the VF6 and VF7 are not yet available. The VF8 has a starting MSRP of $59,000 with a battery range of 293 miles and the VF9 has a starting MSRP of $83,000 with a range of 369 miles. The company expects to begin deliveries in California later this month. Singapore-based VinFast was established in 2017 as a member of Vingroup, one of the largest private conglomerates in Asia. The group focuses on advancements in technology, real estate and mobility, according to VinFast’s website. While the manufacturer plans to open more U.S. storefronts, VinFast cut about 80 jobs in the U.S. and Canada last week, including former U.S. Chief Financial Officer Rodney Haynes, according to Bloomberg News . Haynes left the company amid restructuring. Gaining traction VinFast has gained traction in the U.S. EV subscription service Autonomy placed an order with the manufacturer in August 2022 as a part of the service’s $1.2 billion order for EVs, totaling 23,000 vehicles to be listed for subscription. The number of vehicles Autonomy ordered from VinFast has not been disclosed. U.S. Bank’s auto outstandings were down 22.8% on a linked quarter basis and 28.1% year over year due to an intentional pullback amid competitive market conditions totaling $17.9 billion at the end of Q4 2022. Auto Finance Summit East, Auto Finance News’ new spring event, runs May 10-12 at the JW Marriott Nashville featuring a fireside chat with Peter Muriungi, CEO of Chase Auto. Visit autofinance.live.

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