Chevrolet stops production of Bolt EV and EUV 2022
The saga surrounding the batteries of Chevrolet Bolt EV and EUV reached a new high. In front of the breach of confidence in the face of LG Chem, the battery supplier, GM has no other choice but to cease production of the vehicles while a solution is found.
This is not without precedent, but it is not common for a manufacturer to cease production of models due to a breach of trust with one of its OEMs. Yet that is exactly what is happening right now between GM and LG Chem.
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Climbing
A few months ago, GM announced the recall of all Chevrolet Bolt EVs from the years 2017 to 2019. Initially, it was programming, then it was the entire battery that was at fault. Until then, LG Chem maintained that the situation was limited to those early years. GM quickly discovered that this is not the case; even the new 66 and 65 kilowatt-hour versions are problematic, so the recall is being extended to 2022.
Loss of confidence
GM has lost confidence in its supplier and no longer believes that the company can supply it with batteries without risk of fault. We are not only talking about batteries that are to be replaced in existing vehicles, we are expanding to current production. Therefore, GM is stopping the assembly of the Chevrolet Bolt EV and EUV 2022.
In interview with the publication Detroit Free PressDan Flores of GM made the following statement: “If we take the batteries that are in stock in warehouses, we are not confident that they are faultless. We are not confident that LG Chem has the ability to produce batteries without problems. We have therefore put the recall on hold and are no longer making new Bolts. “
Painful search for solutions
Faced with this impasse, the two companies are working hard to find a solution from the LG Chem facilities in Holland, Michigan. Engineers from both sides analyze and scrutinize batteries to understand what is the recurring problem that can cause the car to burn. It is currently impossible to know when a solution will be found.
Costliest recall in history
For the first part, that of 2017 to 2019, we were talking about the most expensive recall in the history of GM at 800 million US dollars. Pushing back until 2022, the bill climbs by one billion for an estimated total of 1.8 billion US dollars. GM intends to send the note to LG Chem. This will not be the first time that the company has received a statement of account, Hyundai has already sent it a 900 million in connection with the exact same problem for the Kona and IONIQ electric.
Strategically at the wrong time
For GM, this situation comes at a very bad time from a marketing standpoint. The automaker has unveiled an improved version of the Bolt EV as well as the extended UVU. In addition to modernizing them, GM has reduced prices to make them more accessible to as many people as possible.
