GM Battery Maker to Pay $1.9B Over Recall
Oct. 13, 2021—General Motors on Tuesday said it has reached an agreement with LG Electronics, its EV battery supplier, to cover the costs of the major recall of all Chevrolet Bolt units.
A report from the Detroit Free Press says LG will reimburse GM for $1.9 billion after an issue with the Bolt's batteries was linked to several vehicle fires, which prompted the recall of 140,000 Bolt units.
“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, vice president of GM Global Purchasing and Supply Chain, in a statement. “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 it will see a recovery in its third-quarter earnings as a result of the deal according to the report.