Vietnamese automaker VinFast’s US rollout of its VF8 and VF9 electric SUVs may receive a serious blow if the Inflation Reduction Act is signed by US President Joe Biden this week.
The bill would leave VinFast reservation holders without the $7,500 federal tax credit, but the Vietnamese company is prepared to go the extra mile to ensure its customers get the deal they were promised.
TechCrunch reports that VinFast is promising preorder holders who are no longer eligible for the tax rebate a $7,500 discount on the vehicle instead. Here’s how the company details the plans in an email to reservation holders.
“VinFast is a brand that not only stands behind our vehicles with our 10-year/125,000-mile warranty but more importantly, we stand behind our customers! For customers who apply for the $7,500 tax credit under current IRC 30D requirements and are denied by the IRS for reasons not attributable to the customer, VinFast will provide the customer a $7,500 purchase price rebate (or similar rebate) on their VinFast vehicle purchase. The binding agreement contains additional details on eligibility for the rebate.”
This is a bold move that could prove very costly for the automaker if the Inflation Reduction Act is signed into law—something that could happen as early as this week.
It’s worth noting that VinFast’s offer stands only if customers agree to convert their non-binding $200 preorders to a written binding contract—a practice that most EV makers have adopted these days to take advantage of the “Transition Rule” loophole in the legislation.
VinFast preorder holders’ $200 refundable reservation fees will become non-refundable, and the contract will allow customers to file for the current $7,500 tax credit with the IRS before the Inflation Reduction Act becomes law. Customers who are denied the tax credit will automatically qualify for the $7,500 discount from VinFast.
On its website, VinFast advertises the Pininfarina-designed VF8 and VF9 electric SUVs with MSRPs of $40,700 and $55,500, respectively, plus a monthly battery subscription fee depending on mileage. The company will offer the VF8 and VF9 with a 100% battery subscription policy until the end of 2023. After that, it will allow customers to either rent the battery or buy it outright.