General Motors and LG Electronics have reached a deal regarding a battery recall impacting the Chevrolet Bolt EV and EUV. The deal calls for LG to compensate GM for nearly the entire cost of the recall, which has made headlines in recent months.
GM announced Tuesday LG will be compensating the automaker for $1.9 billion of the near $2.0 billion cost of the recall. This compensation will show up as a recovery against its third-quarter earnings.
“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, GM vice president, Global Purchasing and 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.”
For months now GM has had to instruct Bolt EV and Bolt EUV owners to park their vehicles outside due to the risk of fire. An issue with the battery module can cause the battery to catch fire. GM and LG have been working on a permanent fix for months, which GM engineers now working with LG to resolve the matter.