VinFast, the Vietnamese electric vehicle (EV) manufacturer, is facing a recall of approximately 6,000 VF 5 cars sold domestically due to a combination switch issue. The company’s shares, listed on the NASDAQ under the ticker symbol VFS, are trading relatively flat on Tuesday after falling nearly 8% the previous day.
The recalled vehicles, which were produced between March and December of last year, have only reported one case of the switch error, with no incidents recorded in the market. VinFast discovered during testing that on certain VF 5 Plus vehicles exclusively sold in Vietnam, the front lights turn off if the driver forcefully pulls the combination switch to start the ignition.
According to VinFast, the issue is a result of a design error in the control circuit board provided by the component supplier. The company is taking proactive measures to replace the combination switch in the affected vehicles.
This recall comes as VinFast aims to establish itself as a major player in the EV market. The company made its NASDAQ debut in August 2023 but fell short of its 2023 target, delivering nearly 35,000 cars instead of the aimed 40,000 units. However, in the final quarter of 2023, deliveries surged by 35% compared to the third quarter, reaching 13,513 units.
VinFast’s commitment to safety is evident in its recent voluntary recall of the VF 8 City Edition. This recall was issued due to the Multimedia Head Unit (MHU) screen going blank while driving or stationary. The recall affected 999 vehicles built between July 27, 2022, and November 25, 2022.
Despite these recalls, VinFast remains determined to establish itself as a prominent EV manufacturer. The company continues to innovate and expand its product lineup. VinFast unveiled new EV models at the CES 2024, showcasing its commitment to the future of sustainable transportation.
In terms of stock performance, VinFast’s shares are trading higher by 0.19% to $5.28 in the premarket session on Tuesday. The company’s ability to address these recalls effectively and continue delivering on its growth targets will be crucial for maintaining investor confidence.
It is important to note that this article was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
