General Motors announced Oct. 13 that it has reached an agreement with LG Electronics for costs and expenses associated with the large-scale recall of Chevrolet Bolt EVs and EUVs.
As a result of the agreement, GM will recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2 billion in charges associated with the recalls due to manufacturing defects in battery modules supplied by LG.
“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, GM vice president, global purchasing and supply chain. “Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month.”
The recall initially involved a limited number of Bolt EVs before GM expanded the recall in August to include all Bolt EV and Bolt EUV models manufactured between the 2017 and 2022 model years.