NewsChevrolet News

Chevrolet Bolt recall | Battery maker LG to reimburse GM for $ 1.9 billion

(New York) The American manufacturer General Motors (GM) announced on Tuesday that the maker of the faulty batteries that led to the massive recall of Chevrolet Bolt, the South Korean group LG, had agreed to reimburse it up to 1.9 billion of dollars.

Defects in the batteries can, under certain circumstances, start fires, prompting GM to recall a total of 142,000 vehicles in installments and temporarily suspend production of the batteries.

The automaker announced during the second quarter results in early August that the recall had cost it $ 800 million and then announced a few weeks later an additional additional cost of $ 1 billion.

PHOTO AHN YOUNG-JOON, ARCHIVES ASSOCIATED PRESS

The sign of battery maker LG, on the facade of the South Korean group’s headquarters in Seoul, South Korea.

He said on Tuesday that the cost of recalls was now estimated at $ 2 billion.

But following the agreement with LG, GM “will spend in its accounts for the third quarter an amount that will cover 1.9 billion of the 2 billion charges related to recalls”, details the press release.

“LG is a valued and respected supplier to GM and we are delighted to enter into this agreement,” said Shilpan Amin, GM Supply Chain Manager.

“Our engineering and manufacturing teams continue to collaborate to speed up production of new battery modules and we plan to start repairing customer vehicles this month,” he added.

These adventures on the only electric vehicle currently marketed by GM in the United States have highlighted the difficulties associated with the production of clean vehicles, the large-scale deployment of which has become a key element in policies to combat climate change.

Back to top button