General Motors to Recover Some of Chevy Bolt EV Recall Costs From LG
October 12 2021 - 8:08AM
Dow Jones News
By Kimberly Chin
General Motors Co. on Tuesday said LG Electronics Inc. has
agreed to reimburse it for some of the costs and expenses related
to the recall of its Chevrolet Bolt electric vehicles and electric
utility vehicles due to defective batteries supplied by LG.
GM expects to recover around $1.9 billion to $2 billion in
charges related to the recall in its third-quarter earnings
results.
"LG is a valued and respected supplier to GM, and we are pleased
to reach this agreement," GM Global Purchasing and Supply Chain
Vice President Shilpan Amin said. "Our engineering and
manufacturing teams continue to collaborate to accelerate
production of new battery modules and we expect to begin repairing
customer vehicles this month."
GM said last month it would start shipping new battery cells to
dealerships as early as mid-October to begin replacing potentially
faulty battery modules. GM and supplier LG Energy Solution
identified and fixed a manufacturing defect in the batteries and LG
resumed production of cells at a factory in Michigan.
In late August, GM expanded a previous recall on the Bolt, after
receiving additional reports of battery fires and concluding an
earlier fix wasn't adequate.
GM's shares rose 1% in pre-market trading, to around $58.69.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
October 12, 2021 08:53 ET (12:53 GMT)
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