General Motors and LG Electronics have reached a deal in which the South Korean battery maker will pay all costs associated with the massive Chevy Bolt recall, the companies said.
Last August, GM announced it was recalling all Chevy Bolts made after 2017, including new versions released earlier this year, after several fires in the electric vehicle’s batteries were found to have been caused by defects in the electric vehicle. LG Chem cells found inside.
As part of the deal, LG will reimburse GM for the “costs and expenses” associated with the recall, which the automaker said will “offset $ 1.9 billion of the $ 2.0 billion in costs associated with the recalls.” . It’s a better deal than initially expected, with GM saying it will seek a billion dollar refund from LG.
“LG is a valued and respected supplier to GM, and we are delighted to enter into this agreement,” said Shilpan Amin, GM’s vice president for global purchasing and supply chain, in a statement. “Our engineering and manufacturing teams continue to work together to speed up production of new battery modules, and we plan to start repairing customer vehicles this month.”
As of last week, GM began shipping replacement battery cells to dealerships after initial delays resulting from plant closures caused by the global shortage of semiconductor chips.
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