General Motors (GM) announced today that the company reached an agreement with LG Electronics on Bolt EV recall costs. LG Electronics will reimburse GM for costs and expenses associated with the recall of Chevrolet Bolt EV and EUV’s.
According to a press release, GM will recognize the estimated recovery in its third-quarter earnings. It is estimated that the recovery will offset $1.9 billion of the $2.0 billion in charges associated with the recall.
The issues around the recall surround defects in the Chevrolet Bolt EV and EUV’s battery modules. LG Electronics provided GM with the defective battery cells that resulted in a number of high profile vehicle fires.
LG and GM continue to have a relationship, despite the issues with the Chevrolet Bolt EV and EUV battery cells. GM noted that the GM engineering and manufacturing team are accelerating the production of new battery modules.
In addition, they hope that they can start repairing customer vehicles this month with the new cells.