So Hisun shifted Speed over to Vietnam, was that different from what Robby wanted?
Asking cause if anyone knew, you would.
I don’t know all the details, but I know Hisun was moving allot of final production out a China as they had the newer VN facility, and it probably helps with tariffs and global consumer concerns with China. Plus the VN facility now has the capability to do full robotic welding, they can paint, and do all the injection molding at the VN complex. I might be wrong, but I think all the pressure casting is still done in China, and I think the engine & drivetrain assemblies is still done in China. The China facility has huge dedicated machining and engine assembly plant facilities. Robby did a IG live tour one time showing the assembly rooms, which were super clean and used robotic to perform some functions. Using VN would also leave the China assembly lines for vehicles staying in China.
And Mexico was opened and some of North American production was moved there. I don’t know to what percent of vehicles are completed in the Mexico factories? I know they don’t have the capability to manufacture or built allot of components yet.
Then you have Texas, which is really the US headquarters, that houses U.S sales & marketing, parts & vehicle distribution, customer service & dealer support. I’m guessing TX assembly is just 20% of final assembly as vehicles are about 80% assembled and created to be shipped to TX for final assembly.
My guess and only guess is maybe at some point they could have planned to move Speed production to Mexico, but with the delays and changes, I’d guess other vehicles filled those production slots. Plus it comes down to costs. Speeds by far the most expensive vehicle they build. It’s probably cheaper for Hisun to build in VN then Mexico, and with Speed having to cover the FOB shipping costs, it probably makes more sense for Hisun to build in VN vs MX where they would be responsible for getting raw material parts made in the China factory or vendor supplied parts to Mexico for assembly. And VN is more of a one stop assembly facility, where they can pretty much do it all.
Also Hisun schedules different models or contract builds to go down the lines, if there is a hiccup or issue, my guess is your production gets pulled off the schedule and another product fills that spot. These factories are working 2-3 shifts 6 days a week. They’re not sitting idle because Speed or any contractor build is working on a fix, or maybe a has a parts supplier delay.
