Failing Fast – What VinFast Can Learn from Tesla, Hyundai
By Edward A. Sanchez — May 19, 2023
Assuming you have a general interest in the automotive market and EVs in general, you’ve no doubt read some of the reviews on the VinFast VF 8 that have been published over the last several weeks. The reviews run the gamut from absolutely savage to constructively critical. Although some are already sticking the proverbial fork in VinFast and calling curtains on the Vietnamese automaker, the unfavorable reviews give the young company a prime opportunity for self-improvement and redemption.
By most accounts, today’s Hyundai Group vehicles are considered world-class, and fully competitive with any other brand on the market in terms of quality, performance, and engineering. This was not always the case.
In the mid-late 1980s, Hyundai was known for one thing in the U.S. market: A low price. The only new vehicle priced less than its Mitsubishi-based Excel subcompact at the time was the Yugo, a Fiat-based hatchback from a then-Communist Eastern Bloc country.
The Hyundai Group is a powerhouse today, but it wasn’t always that way. The second generation Kia Optima was competent, but it took another generation before the company really hit its stride. (Image courtesy Kia)
For a few years, Hyundai was the punchline of late-night shows and standup comedians. In the late 1980s and early ’90s, South Korea was still by most measures an emerging-market economy. Yet South Korea’s and Hyundai’s determination to be competitive on the world stage left it undeterred, and more determined than ever to prove themselves.
In 2005, Hyundai made the seemingly risky, but in hindsight transformative decision to offer a then-unprecedented 10-year, 100,000-mile powertrain warranty, and a 5-year, 60,000-mile bumper-to-bumper warranty in the U.S. This level of assurance at least gave customers a reason to consider the models, even though at the time, many considered Hyundai and Kia to be “off” or “throwaway” brands.
Tesla is riding high now, but the company underwent a lot of trials and tribulations before creating the powerhouses that are the Model 3 and Model Y. (Image courtesy Tesla)
The big perception-changer for both Hyundai and Kia came in 2011, with the introduction of the new Sonata and Optima. The styling of the two midsize sedan models was uncharacteristically bold for the brands, which were largely characterized by attractive, but somewhat generic designs. The models featured class-leading content, warranty coverage, and interior space, and suddenly put the brands on many buyers’ consideration list. Fast-forward to today, and Hyundai Group vehicles are considered class-leaders in many ways in their respective segments, especially in EVs, with its E-GMP models.
Even Tesla, currently the 800-pound gorilla in the EV segment, wasn’t always perceived as the unstoppable juggernaut it is today. Early Model S sedans gained a reputation (whether deserved or not) of catching fire. Early Model 3s were revealed to sometimes have “fix-on-the-fly” repairs with parts from big-box hardware stores.
Most of the negative reviews on the VinFast VF 8 center primarily around the ride quality, and the level of refinement on the infotainment and ADAS systems. These issues are eminently fixable. Changing specifications on the dampers or springs, anti-roll bars, or software could easily transform the driving experience. Some interior bits breaking during testing is not a catastrophic issue.
Objectively, the VF 8 is a solid performer, posting a respectable 5-second 0-60 time, and actually outperforming its EPA-rated range according to Car and Driver testing.
Was the VF 8 perhaps rushed to market when it could have used another proverbial 15 minutes in the oven? Maybe. But for those who are prematurely writing VinFast’s obituary, don’t throw the towel in just yet. VinFast is not alone in having a somewhat wobbly start.
Will VinFast become the next Hyundai or Toyota? Time will tell. If the company takes earnest, constructive criticism to heart, and refocuses its efforts on refinement and integration, it has as good a chance as any automaker of being a major player in the years and decades ahead.
(Main image courtesy VinFast)
