LG Electronics has reached a deal with General Motors to pay as much as $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to battery fires
ByThe Associated Press
October 12, 2021, 12:21 PM
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DETROIT -- LG Electronics has reached a deal with General Motors to pay $1.9 billion to $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to the risk of battery fires.
The automaker, which announced the deal in a statement early Tuesday, says it will show the estimated recovery in its third-quarter earnings that will offset charges associated with the recalls.
In August GM expanded a previous recall to more than 140,000 Bolt electric vehicles sold worldwide since 2016 because a battery manufacturing defect could cause the vehicles to catch fire.
The company said at the time that in rare cases, batteries that have two manufacturing defects can cause fires.
General Motors said in September that production has resumed for battery modules used in recalled Bolts, and customers could start getting replacement parts by mid-October.
The recall follows reports of 13 battery fires, GM said, which can occur when two separate defects are present in the battery modules.