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Bolt electric car battery recall might have hurt General Motors, but LG will pay $1.9bn to sooth troubled feelings
Two faults, around $2bn to pay
LG Electronics will pay a minimum of $1.9bn to General Motors after defective batteries it supplied for the car maker's Chevrolet Bolt electric vehicles caused car fires.
The payment is related "to manufacturing defects in battery modules supplied by LG," GM said in a statement.
The most recent recall was related to two manufacturing defects in batteries that posed fire hazards. GM recalled of Bolt EV models from 2017-2022 and the latest 2022 model of the Bolt EUV. The two manufacturing defects, a torn anode and a folded separator, were in the same battery cell.
GM said it would notify customers when replacement parts were ready. Until then, the company on its recall website has asked customers to follow specific instructions to reduce fire hazard.
One of the instructions includes "Park your vehicle outside immediately after charging and do not leave your vehicle charging indoors overnight."
GM said on Tuesday LG's payment will offset recall-related costs in third quarter earnings, which the company will report on November 4.
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The American car biz and LG "continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month,” GM said.
The US National Highway Traffic Safety Administration noted recalls for Bolt in November [PDF] last year and July this year. A total number of 110,324 Chevy Bolts are being recalled, NHTSA said in August.
GM is looking at an all-electric future, with 30 EVs in its fleet by 2025, said company president Mark Reuss during an investor meeting last week. ®