General Motors reaches $1.9 billion agreement with LG for Bolt EV recall cost

General Motors (GM) has reached an agreement with its South Korean battery partner LG Electronics to recover a cost of $1.9 billion from the latter out of the $2 billion spent in the costs for the recall involving Chevrolet Bolt EVs. The automaker will recognize the recovery in its third-quarter earnings report.

File photo of a Chevrolet Bolt EV vehicle seen on the assembly line at General Motors Orion Assembly in Lake Orion, Michigan, US. (REUTERS)
File photo of a Chevrolet Bolt EV vehicle seen on the assembly line at General Motors Orion Assembly in Lake Orion, Michigan, US.

GM had to recall all of its 143,000 Bolt EV models due to a manufacturing defect involving the battery that increased the risk of catching fire, especially during charging. The batteries were supplied by LG Chem, a part of LG Electronics.

GM will be recovering nearly all of the costs of the recall, as the company's Chief Executive Officer Mary Barra got the company’s battery partner to assume nearly full responsibility. After the settlement, both the companies will move past the costly and embarrassing episode that led the automaker to recall the Bolt EVs and ask the owners to restrict its use.

Also check these Vehicles

Find more Cars
Mercedes Benz Amg Eqs (HT Auto photo)
107.8 kWh | Electric | Automatic | 529 Km
₹ 2.45 Cr* **Ex-showroom price
Add to compare
Check latest offers
Mg 4 Ev (HT Auto photo)
₹ 30 - 32 Lakhs* *Expected Price
View Details
Tata Sierra Ev (HT Auto photo)
₹ 25 - 30 Lakhs* *Expected Price
View Details
Tata Punch Ev (HT Auto photo)
₹ 12 - 14 Lakhs* *Expected Price
View Details
Mg Comet Ev (HT Auto photo)
₹ 7.98 - 9.98 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Tiago Ev (HT Auto photo)
₹ 8.49 - 11.79 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Also Read : General Motors to start replacing batteries of recalled Bolt EVs next month

GM had given advisory to the Bolt owners to limit charging of their car’s battery and also asked them to park vehicles outdoors and at least 50 feet (15 meters) from other vehicles.

The automaker had been working with LG to track down and fix the problem in the battery. The companies last month informed that LG plants have resumed battery production and are increasing the capacity so the batteries meant for replacement will begin shipping to dealers as soon as mid-October. The new batteries will include an extended battery warranty of 8-year/100,000-mile.

Even after the whole episode of Bolt EVs and fears of GM and LG's relationship souring, both the companies will partner to make new EV batteries for GM. “LG is a valued and respected supplier to GM, and we are pleased to reach this agreement," said Shilpan Amin, GM’s vice president of global purchasing and supply chain.

(with inputs from Bloomberg)

First Published Date: 13 Oct 2021, 09:44 AM IST
Shopping Bag Shop Now
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 99
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic) (Multy)
Rs. 349
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.