VinFast Auto Ltd. VFS Shares traded relatively steady in the pre-market session on Tuesday, after falling nearly 8% yesterday.
The Vietnamese electric vehicle maker is reportedly recalling around 6,000 VF 5 cars sold in the domestic market for combination switch replacement, Reuters reported.
Only one case of gearbox failure was reported on the recalled vehicles, produced between March and December last year, with no incidents reported on the market, the Reuters report added.
VinFast discovered during testing that on some VF 5 Plus vehicles, sold exclusively in Vietnam, the front lights turn off if the driver forcefully pulls the combination switch to start the ignition, the report said.
VinFast said the problem stemmed from a design flaw in the control circuit supplied by the component supplier, Reuters added.
VinFast, which made its Nasdaq debut in August last year, missed its 2023 goal, delivering nearly 35,000 cars instead of the 40,000 units expected.
However, deliveries increased by 35% in the last quarter of 2023 compared to the third quarter, reaching 13,513 units.
Early on May 18, the company issued a voluntary safety recall of the VF 8 City Edition on which the multimedia head unit (MHU) screen goes dark while driving or while stationary.
The recall affected 999 2023 MY VF 8 City Edition vehicles built from July 27, 2022 to November 25, 2022.
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Price Action: VFS shares were trading 0.19% higher at $5.28 in premarket Tuesday, at last check.
Disclaimer: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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