General Motors supplier LG Electronics Inc. for the nearly $2 billion cost of recalling Chevrolet Bolt electric models due to the risk of battery fire. Told to recover.
GM said on Tuesday that LG will refund automakers because of a manufacturing defect in battery modules supplied by the South Korean company. In August GM previously recalled to include all approximately 142,000 bolts manufactured by automakers since 2016, which may have been linked to at least 13 fires due to manufacturing defects.
Detroit automakers said they expect to report recovery of about $1.9 billion of the $2 billion in safety-related costs from LG in third-quarter earnings later this month. It is one of the most expensive in history.
LG did not immediately respond to a request for comment.
The Bolt’s return to electric vehicles was a major failure for GM to emerge. We look forward to introducing dozens of new electric models in the future, with the ultimate goal of overtaking Tesla, the electric vehicle leader in US sales. The Bolt is GM’s only electric vehicle for sale in the United States today.
GM says the defect is related to manufacturing issues at LG’s factory and that some battery cells have two defects that could lead to a fire. The automaker has previously told LG that it is in talks to reimburse the company part of the cost of the recall.
For months GM has instructed Bolt owners to remove the Bolt immediately after charging, not to park overnight, and to keep an adequate distance from other vehicles in the parking lot. Many Bolt owners say they are concerned about the fire hazard and delays in car repairs.
The automakers said in September that the two companies wanted to work on fixing the problem and would start replacing the defective car battery cells and modules in the recalled car in October. In a statement on Tuesday, GM’s head of purchasing and supply chain, Shilpan Amin, said automakers are ready to begin repairing vehicles this month.
“LG is a valued and respected supplier to GM,” Amin said. “Our engineering and manufacturing teams continue to work together to accelerate production of new battery modules.”
improvement and amplification
GM said on Tuesday that LG would refund automakers due to a manufacturing defect in battery modules. Earlier versions of this article erroneously stated that GM announced it on Monday. (corrected October 10)
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GM says it will recover $1.9 billion in Bolt recall costs from LG
Source Link GM says it will recover $1.9 billion in Bolt recall costs from LG