U.S. auto safety regulator National Highway Traffic Safety Administration (NHTSA) said on Thursday that it is opening a preliminary evaluation into VinFast Auto Ltd.'s (NASDAQ:VFS) VF8 vehicles over concerns over its Lane Keep Assist (LKA) system.
What Happened: The regulator opened the investigation over complaints alleging that the Lane Keep Assist system can activate in error and not function properly. The system, the complainants alleged, has difficulty detecting lanes on the roadway and provides improper steering inputs which are difficult to override by the driver.
"Improper steering inputs can result in high control effort required by the driver and increase the likelihood of a crash or injury," the regulator said.
Why It Matters: The preliminary evaluation is aimed at determining if a safety-related issue exists in the company's model year 2023- 2024 VF8 vehicles.
One of the complainants, the regulator said, alleged a crash. However, the agency is not sure yet whether the crash was related to an issue with the LKA system, it said.
Vietnamese EV maker VinFast went public via a Special Purpose Acquisition Company (SPAC) deal in August 2023.
Price Action: VinFast's shares closed at $3.94 on Wednesday, up 0.25%. The stock is down 44% year-to-date, according to data from Benzinga Pro.
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Photo courtesy: VinFast
