GM announced on Friday that it will spend $1 billion to widen the recall of its Chevrolet Bolt electric vehicles owing to the potential of fires from the high-voltage battery pack, a setback for the world's largest carmaker as it attempts to boost EV sales.
Due to the problem, the Detroit firm has decided to suspend sales of the electric vehicles indefinitely and will seek reimbursement from battery supplier LG. The most recent recall affects 73,000 cars from the 2019 through 2022 model years.
“The reserves and cost-to-recall ratio will be determined based on the findings of the joint investigation into the root cause, which is currently being conducted by GM, LG Electronics, and LG Energy Solution,” LG said in a statement.
LG further stated that it is actively working with its customer and partners to guarantee a seamless implementation of the recall procedures.
After falling 0.6 percent during Friday's regular session, GM shares fell 2.2 percent in after-hours trading.
LG Electronics Inc (066570.KS) of South Korea reduced its second-quarter operating profit by more than a fifth to reflect costs associated with the GM recalls earlier this month. find out more
LG Chem's (051910.KS) fully owned battery subsidiary LG Energy Solution has provided GM with battery modules built with LG Chem's (051910.KS) cells (LGES).
Hyundai Motor Co (005380.KS) announced earlier this year that it will spend $900 million to replace LG batteries in 82,000 electric vehicles owing to fire concerns. find out more
GM said on Friday that the recall applies to all remaining Bolt vehicles that were not originally recalled in July. GM has said that faulty battery modules in Bolt EVs and EUVs would be replaced with replacement modules. The new recall will cost $1 billion, on top of the $800 million GM says prior Bolt recalls cost. find out more
Ultium Cells LLC, a joint venture between GM and LGES, is currently developing battery cell facilities in Ohio and Tennessee, with plans to add two more in the future. When it debuts electric Hummer and Cadillac vehicles later this year, GM says it will utilize a different-generation battery.
Following reports of two fires, GM issued a recall for roughly 69,000 Chevrolet Bolts in July, stating that faulty battery modules will be replaced as needed. Friday's action increases the number of cars involved in the same issue. find out more
NEW CONSUMER ADVISORY
GM stated it is "working aggressively with LG to increase (battery module) production as soon as possible." after announcing that Bolt sales will be halted until the issue was resolved. Customers will be notified when new components are available, according to GM.
Some of the Bolt EVs that were recalled in July had already been recalled in November for software updates to address fire concerns, although at least one fire occurred following the software upgrade. On Friday, there were a total of ten Bolt fires, according to GM.
After GM and the National Highway Traffic Safety Administration (NHTSA) advised Bolt owners to store their vehicles outdoors and away from their houses after charging, the recall was issued in July. Owners of the newly recalled vehicles should park them outdoors after charging and not keep them charging indoors overnight, according to GM.
The National Highway Traffic Safety Administration (NHTSA) issued a second consumer warning to Bolt owners on Friday, stating that it is still investigating the issue.
In rare cases, the batteries provided to GM for these cars may contain two manufacturing faults — a broken anode tab and a folded separator – in the same battery cell, increasing the danger of fire, according to the carmaker.
"discovered manufacturing defects in certain battery cells produced at LG manufacturing facilities beyond the Ochang, Korea, plant," GM said after the 10th fire in Chandler, Arizona.
The new recall covers 9,335 Bolt EVs from the model year 2019 that were not included in the earlier recall, as well as 63,683 Chevrolet Bolt EVs and EUVs from model years 2020–2022.
