LG To Reimburse GM $1.9 Bn Over Chevy Bolt Recall
General Motors announced Tuesday that it reached an agreement with supplier LG to be reimbursed for $1.9 billion in costs connected with the recall of the Chevrolet Bolt.
Battery maker LG Electronics will repay GM for the cost of addressing defects that necessitated the recall of more than 140,000 Bolts due to fire risk.
GM announced recalls of the vehicles over the past few months following a series of car fires. The automaker also urged Bolt owners to park their cars outside and away from homes and to not let the charge dip below 70 miles of available range.
The recall has come as GM ramps up investment in electric vehicles (EV). Last week, GM unveiled plans to double revenues by 2030, in part through much higher sales of EVs.
The Detroit automaker is building jointly-owned battery plants with LG in the United States and indicated Tuesday it views the South Korean company as a long-time partner in its EV push.
"LG is a valued and respected supplier to GM, and we are pleased to reach this agreement," said Shilpan Amin, a GM vice president in 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."
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