Friday, May 27, 2022
News LG Electronics Will Pay GM Up to $1.9 billion to Cover Costs...

LG Electronics Will Pay GM Up to $1.9 billion to Cover Costs of Chevrolet Bolt Recalls

LG will cover most of the costs associated with the recall

  • LG is the supplier of the defective batteries

  • The recall will cost an estimated $2 billion for General Motors

  • Battery replacements should begin this month

General Motors has been in hot water since July due to the massive recall of all Chevrolet Bolt models ever produced over a fire risk.

During its investigation, the automaker found two manufacturing defects in the battery packs supplied by LG. If both of the defects are present in the same battery, a fire could ignite, as was the case for about a dozen vehicles.

This recall affects every Chevrolet Bolt made since production began in 2016, which makes it very expensive. It is estimated General Motors will have spent $2 billion by the end of the recall.

After talks and negotiations, LG Electronics has agreed to make up for its mistakes by reimbursing GM up to $1.9 billion USD.

Both companies will continue to work together to produce electric vehicle batteries since its new Ultium range of electric propulsion systems is developed and produced in partnership with LG.

The electronics company assures it has improved its quality assurance programs to make sure such incidents don’t happen again.

General Motors should start replacing defective battery packs by the end of the month after it has determined which ones pose a threat and which ones are safe via a software that was recently installed in the cars, as a part of this recall.

Owners will finally be able to use their cars normally again, after months of having to comply with restrictive measures regarding charging, but a timeline has not been published, so we don’t know when the last replacements will take place.



Trending Now

Hyundai is Planning to Build up to 6 New EVs in its Georgia Factory

Hyundai recently announced it will build a new factory near Savannah, Georgia Up to six different EVs could be built there by 2028 ...

The New BMW Alpina B3 is Exceptional as Always

The updates to the B3 follow the reveal of the facelifted 2023 3 Series. Horsepower is up to 495. That B3 Touring… BMW may...

Electric Vehicles could Create More Pollution than Gasoline Powered Vehicles due to their Tires

Tires create fine particle dust which seeps in the ground as they wear on the pavement Electric vehicles being heavier than comparable gasoline...

1955 Mercedes-Benz 300 SLR Coupé Sells for a Record $142 million

A private collector purchased the car from Mercedes-Benz for a record €135 million. The car is one of only two 1955 Mercedes-Benz 300...

The Polestar 2 and Volvo XC40 Recharge Win AJAC’s 2022 Canadian Green Car of the Year Awards

Both are their respective automakers’ first full EV offerings. Incidentally, both the Volvo and the Polestar share structural and mechanical components. The Automobile Journalists...


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.