GM reaches deal with LG to pay for Bolt battery recall costs

Oct 12, 2021, 5:41 AM | Updated: 5:48 am
FILE - This April 5, 2021 file photo shows the logo of LG Electronics Inc. outside of the company's...

FILE - This April 5, 2021 file photo shows the logo of LG Electronics Inc. outside of the company's office building in Seoul, South Korea. LG Electronics has reached a deal with General Motors to pay as much as $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to battery fires. The automaker announced the deal in a statement early Tuesday, Oct. 12. (AP Photo/Ahn Young-joon, File)

(AP Photo/Ahn Young-joon, File)

DETROIT (AP) — LG Electronics has reached a deal with General Motors to pay $1.9 billion to $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to the risk of battery fires.

The automaker, which announced the deal in a statement early Tuesday, says it will show the estimated recovery in its third-quarter earnings that will offset charges for the recalls.

In August GM expanded a previous recall to more than 140,000 Bolt electric vehicles sold worldwide since 2016 because a battery manufacturing defect could cause the vehicles to catch fire.

The company said at the time that in rare cases, batteries that have two manufacturing defects can cause fires.

General Motors said in September that production has resumed for battery modules used in recalled Bolt hatchbacks and SUVs, and customers could start getting replacement parts by mid-October.

The recall follows reports of 13 battery fires, GM said, which can occur when both defects are present in the battery modules.

GM said in a statement that LG of Korea is a “valued and respected” supplier to the Detroit automaker. “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,” GM Global Purchasing Vice President Shilpan Amin said in the statement.

The battery fires and recalls have been an embarrassing setback for GM, which has lofty goals of switching from internal combustion to battery powered vehicles.

To capture U.S. electric vehicle market share leadership, GM plans to spend $35 billion to roll out more than 30 new battery vehicles globally by 2025. The company has said it aspires to make only electric passenger vehicles by 2035.

By the end of the decade, GM expects $90 billion in additional annual revenue from electric vehicles.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A customer pumps gas at an Exxon gas station, Tuesday, May 10, 2022, in Miami. Gasoline prices are ...
Associated Press

EXPLAINER: How is inflation affecting commuting costs?

NEW YORK (AP) — Gas prices have fallen from the record highs they reached earlier this summer, but they’re still much higher than a year ago. And with inflation driving up the cost of pretty much everything else, finding the funds to cover your commute may be increasingly tricky. “Being able to get to work […]
20 hours ago
This photo provided by the Hawaii Department of Land and Natural Resources shows a large wildfire i...
Associated Press

Large wildfire burning amid drought on Hawaii’s Big Island

HONOLULU (AP) — A large wildfire in a rural area of Hawaii’s Big Island is not threatening any homes, but high winds and extremely dry conditions are making it difficult for crews to contain the blaze. The fire started in the western reaches of the U.S. Army’s Pohakuloa Training Area, which is above the town […]
20 hours ago
In this undated photo provided by Masih Alinejad, Monday, Aug. 1, 2022, Alinejad, an Iranian opposi...
Associated Press

Man arrested near home of Iranian dissident faces gun charge

NEW YORK (AP) — A man arrested in New York City last month near the home of an Iranian opposition activist and writer has been indicted on a weapons count. The indictment charges Khalid Mehdiyev with one count of possessing a firearm, a Chinese-made AK-47-style assault rifle, with an obliterated serial number. Police arrested Mehdiyev […]
20 hours ago
This image released by Netflix shows Jamie Foxx, left, and Snoop Dogg in a scene from "Day Shift." ...
Associated Press

Review: Jamie Foxx hunts vampires in comedy ‘Day Shift’

This year marks the centennial anniversary of F. W. Murnau’s “Nosferatu,” a long time for us humans but only a blip for vampires. If you were looking to celebrate the birthday of that silent classic, which still casts a long and ominous shadow over all vampires films that have followed, you could do it with […]
20 hours ago
FILE - A motorist fills up the tank on a sedan, on July 22, 2022, in Saratoga, Wyo. Gasoline prices...
Associated Press

Gas prices dip just below $4 for the first time in 5 months

DALLAS (AP) — Gasoline prices have dipped under $4 for the first time in more than five months — good news for consumers who are struggling with high prices for many other essentials. AAA said the national average for a gallon of regular was $3.99 on Thursday, down from the mid-June record of $5.02. However, […]
20 hours ago
Kareim McKnight, center, talks to reporters during a press conference outside Chase Center, announc...
Associated Press

Protester: San Francisco paramedic sedated her involuntarily

SAN FRANCISCO (AP) — A protester has filed a federal civil lawsuit against the city of San Francisco claiming that a paramedic, under the direction of a police sergeant, injected her against her will with a sedative while she was handcuffed after being removed from a Golden State Warriors championship game for demonstrating in favor […]
20 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
GM reaches deal with LG to pay for Bolt battery recall costs