General Motors has reached an agreement under which LG Electronics Inc. will reimburse GM for costs and expenses associated with the recall of Chevrolet Bolt EVs and EUVs due to manufacturing defects in battery modules supplied by LG. (Earlier post.)
As a result of the agreement, GM will recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2.0 billion in charges associated with the recalls.
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.
In August, General Motors voluntarily recalled all Chevrolet Bolt EVs, including the new Bolt EUV. In certain circumstances, the batteries supplied to GM for these vehicles may have two manufacturing defects—a torn anode tab and folded separator—present in the same battery cell, which increases the risk of fire.
GM is replacing defective battery modules in Chevrolet Bolt EVs and EUVs with new modules.