VinFast to recall initial batch of US-bound EVs over safety concerns

May 25, 2023 2:43 PM EDT

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Vietnamese electric automaker VinFast revealed Thursday its decision to recall the entire initial shipment of vehicles it sent to the United States last year. This action comes in response to a safety advisory issued by U.S. authorities.

VinFast made the decision after the U.S. National Highway Traffic Safety Administration (NHTSA) flagged a software issue in the dashboard display of 999 VF 8 vehicles. This glitch prevented critical safety information from being shown, posing a potential risk of crashes.

The NHTSA estimates that more than 700 of the 999 units are still in VinFast's hands and have not been delivered to customers or fleet services.

VinFast said in a statement that it has issued a voluntary safety recall of the VF 8 City Edition on which the dashboard screen goes blank while driving or stationary.

"VinFast is not aware of any field reports of incidents. The company is issuing this recall out of an abundance of caution," it said.

In documents filed with the NHTSA, VinFast said it first became aware of the dashboard issue on April 27 while reading customer comments and concerns. According to the safety agency, the problem has been documented 18 times.

The recall comes less than two weeks 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. (NYSE: BSAQ). The two companies estimated the new entity would have a potential equity value of $23 billion, assuming no Black Spade shareholders elect to cash out.

The NHTSA said VinFast will introduce a software update that should fix the issue. The software fix is scheduled to go live on May 25 with notification letters being sent out to owners by May 29.

According to the U.S. regulator, VinFast will roll out a software update to rectify the issue. The update is scheduled to be released on May 25, and owners will receive notification letters by May 29, informing them about the fix.

By Michael Elkins | [email protected]

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