Chevy Bolt EV Battery Fire Recall Prompts More GM Factory Shutdowns
General Motors (GM) will continue to keep its Orion assembly plant in Michigan shut down amid recalls of its Chevrolet Bolt EV that caused some cars to catch on fire due to a battery malfunction.
According to CNBC, GM will shut down the plant on the weeks of Sept. 13 and Sept. 20 as it works to resolve the issue with battery supplier LG Chem. The Orion plant has been closed since Aug. 23 due to battery pack shortages due to the recall.
GM said it will discontinue selling the Bolt EV or stop production on the vehicle until it completes the recall repair that will address the fire risk problem,
A spokesperson for GM told CNBC that the automaker is continuing to work with LG Chem to resolve the issues and increase the production of new battery modules.
GM has said that the issue with the battery packs stems from two “rare manufacturing defects” – a torn anode tab and folded separator – when existent together in the battery cell increases the risk of fire.
At least 12 fires in vehicles have been confirmed by GM.
In August, GM asked Bolt EV owners to change the settings on their cars to reduce the fire risk as part of a recall.
GM expanded its initial recall of Bolt EVs to include all models of the car, which is estimated at 140,000 units, and is expected to cost about $1.8 billion to replace the defective battery modules, Reuters said.
GM said it is looking for reimbursement from LG Chem on the battery packs.
GM has also had a series of temporary plant shutdowns due to semiconductor chip shortages.
According to Reuters, the company’s full-size truck and full-size SUV plants in North America will now be fully operational next week, along with its Ft. Wayne assembly plant in Indiana and Silao assembly plant in Mexico.
Plants in Lansing Delta Township, Michigan, and Wentzville, Missouri, will be shut down for another week along with Chevy Blazer production in Ramos, Mexico.
As of Thursday at 2 p.m. ET, shares of GM were trading at $48.24, down 74 cents, or 1.50%.
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