VinFast Initiates Recall of US-Bound EVs Due to Safety Concerns

VinFast, a Vietnamese electric vehicle (EV) manufacturer, has initiated a recall of its initial shipment of vehicles to the United States due to safety concerns raised by U.S. authorities.

The recall was prompted by the U.S. National Highway Traffic Safety Administration (NHTSA), which reported that 999 units of VinFast’s VF 8 vehicles had a software glitch in the dashboard display. This error prevented critical safety information from being shown and could potentially lead to an increased risk of accidents.

Out of the 999 affected units, over 700 remain in VinFast’s possession and have not yet been delivered to customers or fleet services, according to the NHTSA’s estimates.

In response to these findings, VinFast has issued a voluntary safety recall for the VF 8 City Edition, where the dashboard screen can go blank while the vehicle is in motion or stationary. VinFast clarified that it has not received any reports of incidents related to this issue and is conducting the recall as a precautionary measure.

The announcement of the recall comes shortly after VinFast’s announcement of its intention to go public in the United States through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co. The projected equity value of the new entity, assuming no Black Spade shareholders decide to cash out, is estimated at $23 billion.

Earlier this year, VinFast recalled 2,781 VF 8 vehicles sold domestically in Vietnam due to a front brake problem in certain models.

VinFast, which was established in 2017 and recently commenced EV sales in California, has shipped two batches of VF 8 vehicles to the United States, totaling 2,097 units. The company is also preparing to send its first vehicles to Europe in July.

According to documents filed with the NHTSA, VinFast became aware of the dashboard issue on April 27 through customer feedback. The safety agency has documented this problem on 18 occasions. VinFast plans to address the issue by releasing a software update, scheduled to be implemented on May 25. Owners will receive notification letters regarding the update by May 29.

In a recent development, VinFast secured $2.5 billion in fresh funding commitments from its parent company Vingroup JSC (VIC.HM), Vietnam’s largest conglomerate, and Pham Nhat Vuong, the founder of VinFast and Vietnam’s first billionaire, further strengthening its financial position.

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