Reuters, May 25, HANOI – VinFast, a Vietnamese manufacturer of electric cars (EVs), announced that it is recalling every one of the initial batch of EVs it sold to the US last year in response to a safety alert from US authorities.
This action was taken in response to the National Highway Traffic Safety Administration (NHTSA) of the United States stating that 999 VinFast VF 8 vehicles had a software fault in the dashboard display that precluded the presentation of vital safety information and “may increase the risk of a crash”.
According to NHTSA estimates, over 700 of the 999 units are still in VinFast’s possession and have not been given to clients or fleet providers.
VinFast stated in a statement to Reuters that the VF 8 City Edition, on which the dashboard screen goes blank whether moving or stopped, is the subject of a voluntary safety recall.
“VinFast is not aware of any incident field reports. “The company is exercising extreme caution by announcing this recall,” it stated.
Less than two weeks have passed since VinFast declared it would list in the US through a combination with Black Spade Acquisition Co. (BSAQ.N), a special purpose acquisition company (SPAC).
The two businesses calculated that, if no Black Spade shareholders choose to cash out, the new company might have a potential stock value of $23 billion.
VinFast recalled 2,781 domestically sold VF 8 vehicles in February due to a problem with certain models’ front brakes.
VinFast was established in 2017 and started selling electric vehicles in California this year. A total of 2,097 VF 8 cars have been transported to the US in two batches. In July, it also intends to ship its first automobiles to Europe.
VinFast stated in NHTSA-filed documents that it learned about the dashboard problem for the first time on April 27 when reviewing feedback and complaints from customers. The issue has been reported 18 times, according to the safety department.
VinFast will release a software upgrade, according to the NHTSA, which should resolve the problem. Notification letters to owners will be mailed out by May 29th, with the software repair set to go live on May 25.
VinFast said last month that it had secured a new round of investment commitments totaling $2.5 billion from its founder, Pham Nhat Vuong, the country’s richest man, and first billionaire, as well as parent company Vingroup JSC (VIC.HM), the largest conglomerate in Vietnam.