Thursday, September 29, 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.

 

 

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