A 2019 Chevrolet Bolt EV caught fire at a house in Cherokee County, Georgia, on September 13, 2021, according to local fire departments.
Cherokee County Fire Department
LG Electronics has agreed to make a refund General Motors Up to $ 1.9 billion for the recall of Chevrolet Bolt EVs due to fire risks from faulty batteries from the South Korean supplier.
Issues with the Bolt – the company’s flagship mainstream electric vehicle – have led the automaker to recall every electric car since production began in 2016. The repair of the vehicles, including the complete replacement of some batteries, is on expected to cost $ 2 billionsaid GM on Tuesday. That’s an increase from an earlier estimate of $ 1.8 billion.
The deal between the companies is a huge win for the automaker, who Wall Street missed expectations in the second quarter due to provision costs for the recall.
As a result of the agreement, GM will recognize an estimated recovery in the third quarter that will offset $ 1.9 billion of the $ 2.0 billion in costs related to the recalls.
The production problems occurred at LG Battery Solution’s plants in South Korea and Michigan. The “rare manufacturing defects” on the Bolt electric vehicles are a torn anode strip and a folded separator, which GM says increases the risk of fire when they are in the same battery cell.
“LG is a valued and respected supplier to GM and we are excited to enter into this agreement,” said Shilpan Amin, GM’s vice president of global purchasing and supply chain, in a statement. “Our development and manufacturing teams continue to work together to accelerate the production of new battery modules and we expect to start repairing customer vehicles this month.”