Press Release: General Motors and LG Electronics Reach Agreement on Bolt EV Recall Costs
General Motors and LG Electronics reach agreement on Bolt EV recall costs
Tue 12 October 2021
LG will reimburse GM for recall fees and expenses
WARREN, Mich .– General Motors Co. (NYSE: GM) today announced that it has entered into an agreement whereby LG Electronics Inc. will reimburse GM for costs and expenses associated with the recall of the Chevrolet Bolt EV and EUV due to defects in manufacture of battery modules supplied by LG.
As a result of the deal, GM will recognize an estimated recovery in its third-quarter earnings that will offset $ 1.9 billion out of $ 2.0 billion in recalls related charges.
“LG is a valued and respected supplier to GM, and we are delighted to enter into this agreement,” said Shilpan Amin, GM’s vice president of global purchasing and supply chain. “Our engineering and manufacturing teams continue to work together to speed up production of new battery modules and we plan to start repairing customer vehicles this month.”
General Motors (NYSE: GM) is a global company focused on promoting a fully electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from consumer vehicles to high performance vehicles. General Motors, its subsidiaries and joint ventures sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information about the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, is available at https://www.gm.com.
Communication from the Director General
GM Investor Relations
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