Lauren Ramesbottom

Lauren Ramesbottom

October 12, 2021 11:03 pm

Earlier today, General Motors revealed that an agreement has finally been reached with LG Electronics to reimburse the automaker for the costs associated with the recall of the Chevrolet Bolt EVs and EUVs.

For those unfamiliar, in August General Motors announced that 73,000 vehicles in the U.S. and Canada were being added to the recall from the 2019-2022 model years (which included 69,000 vehicles), including a recently launched larger version of the car called the Bolt EUV. Upon investigation, it was discovered that LG Electronics produced defective parts in plants in South Korea and Michigan. The manufacturing defect involved the vehicle’s battery, and led to an increased fire risk. In the wake of this discovery, Bolt drivers were instructed to limit how much to charge the car’s battery and advised to park outdoors and 50 feet (15 meters) from other vehicles.

The agreement promises to offset the significant cost of the recall; specifically, US$1.9 billion of the US $2 billion ($2.5 billion CAD).

Speaking to the latest news, Shilpan Amin, GM’s vice president, shared, “LG is a valued and respected supplier to GM, and we are pleased to reach this agreement. 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.”

LG has now resumed production of new battery modules to replace defective ones, and is eager to strengthen its partnership with GM moving forward.

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