VinFast buys Holden proving ground

Vietnamese car company VinFast has completed the deal to buy the GM Holden proving ground at Lang Lang in Victoria.

VinFast’s interest in the site was exclusively reported by carsales in February, when it was also revealed the ambitious start-up had set up a product development centre in Melbourne and recruited many ex-Holden engineers.

“Currently, VinFast's product research and development is making a rapid progress. Therefore, owning a modern testing centre like Lang Lang helps a lot for our activities,” said Kevin Yardley, the director of VinFast’s Melbourne development centre, in a press release issued by the company.

“Many employees in VinFast Australia are currently recruited from Holden and they are all very happy to continue working here.

VinFast had faced competition from the LinFox Property Group for the site, which also owns the Phillip Island Grand Prix Circuit and the Australian Automotive Research Centre near Anglesea.

Lang Lang was offered for sale after General Motors axed the Holden brand in February.

In the VinFast press release, interim Holden chairman and managing director Kristian Aquilina welcomed the sale.

“With Holden, this is the end of an era, but the Lang Lang testing centre will continue to be involved in shaping the global automotive industry. I am very happy to know that a bright future is waiting ahead,” he said.

As part of the deal, GM Specialty Vehicles will continue to access the Lang Lang site for testing and engineering validation of new products in local conditions.

The Victorian minister for employment, innovation and trade Martin Pakula also welcomed the sale.

“VinFast's acquisition of the Lang Lang testing centre not only contributes to creating high-quality job opportunities for local human resources, but also enhances Victoria's reputation as the world's leading research, manufacturing and testing centre”, he said.

No pricing details were included with the announcement, but VinFast did confirm it would be starting operations at the site as soon as the financial handover was complete.

VinFast was established in 2017 by Vietnam’s richest man Pham Nhat Vuong. It has hired a slew of senior GM and Holden executives to run the business.

While only launched in Vietnam currently, VinFast plans to expand into the USA with a new electric vehicle in 2021 and says it will sell cars in Australia when the time is right.

In its release it said the acquisition of Lang Lang will bring VinFast “closer to the goal of launching new models with global competitiveness”.

At the moment its line-up consists of a sedan based on the BMW 5 Series architecture, an SUV based on the BMW X5 and a small car based on the Opel Karl.

It has recently launched the limited-edition President SUV, which is powered by a 320kW 6.2-litre Chevrolet V8 and costs a minimum $227,000.

Established in 1958 on an 872-hectare site on Westernport Bay, 90 minutes’ drive south-east of Melbourne, Lang Lang’s 44km of test roads includes a 4.7km high-speed oval and a 5.5km ride and handling course. The site also includes an emissions laboratory. It was most recently upgraded in 2018.

As part of the sale agreement, VinFast has committed to maintaining the protection of the local environment, primitive vegetation and natural landscapes, and continue to organise community land-care activities.

VinFast has also agreed to host Holden car club days and former Holden employees “to honour Holden's legacy and contributions to the automotive industry”.