Tuesday ticker: VINFast submits IPO; Ottawa is looking to invest in electric vehicle manufacturing

Toronto, Ontario ⁠— It’s time for your weekly automotive business report. This weekly Tuesday ticker covers the anticipated VINFast IPO announcement as well as the federal government’s alleged response to the US Inflation Reduction Act.

VFS⁠ – coming soon in a ticker near you
Vietnam-based EV maker VinFast announced last week that it had filed for an IPO in the United States, listing common stock on the Nasdaq.

The Company will list the shares under the ticker symbol VFS. The IPO will require VINFast to become a Singapore Public Limited Company, it said, and will trade as VinFast Auto Ltd. be known.

The number of shares to be offered and price ranges are yet to be announced.

The IPO was originally scheduled for the fourth quarter of this year, although VinFast’s parent company said in May 2022 that the IPO could potentially be delayed due to market uncertainties.

VINFast offers vehicles for the North American market in the USA and Canada; At the end of November, the first batch of cars was shipped to the United States.

The company previously filed for a confidential IPO in US securities, in parallel with preparations for a multi-billion dollar investment earmarked for a US VINFast factory.

Ottawa deals his cards
The federal government is reportedly set to introduce production cost subsidies for major electric vehicle battery manufacturers in hopes of persuading the parties to build plants on Canadian soil.

The new measures — dubbed a “game changer” for Canada’s industrial policy — could result in Ottawa funding the operating costs of battery and battery component manufacturers through subsidies linked to the number of units produced. Previous government programs were based on one-off capital expenditures such as the construction or modernization of manufacturing facilities.

The measures could counteract America’s recently passed Inflation Reduction Act, which experts say poses a threat to Canadian industry. The law promises investments of 270 billion US dollars in climate and clean energy. Canadian industry and manufacturing experts say the US’ ambitious climate plan could spark a wave of investment towards US-based manufacturing.

“The US has turned on a store vacuum to suck up stimulus and we stand here with a vacuum,” Matt Poirier, senior director of manufacturers and exporters, told the House of Commons in early November, citing measures in the Inflation Bill.