Cost of GM recall of Chevy Bolt set at $1 billion

1 month ago 8
PR Distribution

Robert Besser
24 Aug 2021, 01:55 GMT+10

DETROIT, Michigan: On Friday, General Motors (GM) said it would instrumentality a $1 cardinal constitute disconnected to grow the callback of its Chevrolet Bolt electrical vehicles owed to the hazard of occurrence successful the vehicle's high-voltage artillery pack.

It volition besides indefinitely halt income and volition question reimbursement from its artillery supplier, South Korea's LG, the institution added.

The latest callback covers 73,000 vehicles from exemplary years 2019 to 2022.

Referring to its subsidiaries, LG stated, "The reserves and outgo ratio of the callback volition beryllium babelike connected the outcomes of a associated probe looking into the cause."

During after-hours trade, GM shares dropped 2.2 percent aft dipping 0.6 percent during Friday's regular session.

Earlier this month, LG reduced its second-quarter operating nett by much than one-fifth to bespeak the outgo of the GM recalls.

It has supplied the Detroit-based car institution with artillery modules made from cells manufactured by its wholly-owned artillery subsidiary, LG Energy Solution (LGES).

Early this year, Hyundai Motor Company said it would walk $900 cardinal to regenerate LG batteries successful immoderate 82,000 of its EVs owed to occurrence risks.

On Friday, GM said the callback covers each remaining Bolt vehicles not antecedently recalled successful July, adding a $1 cardinal terms tag for the latest recall, which comes connected apical of erstwhile Bolt recalls costing $800 million.

In July, GM recalled astir 69,000 Bolts aft reports of 2 fires, stating it volition regenerate defective artillery modules, and volition notify customers erstwhile replacement parts are available.

On Friday, it reported that determination person been 10 Bolt autos that person caught fire.

The National Highway Traffic Safety Administration, connected Friday, warned Bolt owners astir the fires and said it is inactive investigating.

After the tenth specified occurrence successful Chandler, Arizona, GM explained it "discovered manufacturing defects successful definite artillery cells produced astatine LG's manufacturing facilities successful Ochang, South Korea."

The caller callback covers 9,335 Bolt EVs from the 2019 exemplary not included successful the erstwhile recall, arsenic good arsenic 63,683 2020-2022 exemplary EVs and EUVs.

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