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GM signs a contract with LG to pay for volt battery recall | WGN Radio 720

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File – This April 5, 2021 file photo is from LG Electronics Inc, located outside the company’s office building in Seoul, South Korea. Shows the logo. LG Electronics has reached an agreement with General Motors to pay $ 2 billion to reimburse automakers for the cost of recalling Chevrolet Bolt electric vehicles due to a battery fire. The automaker announced the deal in a statement early on Tuesday, October 12. (AP photo / Ahn Yong Joon, file)

Detroit (AP) — LG Electronics has signed a $ 1.9 to $ 2 billion contract with General Motors to reimburse automakers for the cost of recalling Chevrolet Bolt electric vehicles due to the risk of a battery fire.

Automakers, which announced the deal in a statement earlier on Tuesday, say they will show an estimated recovery in third-quarter earnings that will offset the cost of the recall.

In August, GM expanded its previous recall to more than 140,000 volt electric vehicles sold worldwide since 2016, as a vehicle could ignite due to a manufacturing defect in the battery.

In rare cases, according to the company, a battery with two manufacturing defects can cause a fire.

General Motors said in September that production of battery modules used in recalled bolt hatchbacks and SUVs would resume, with customers starting to get replacement parts by mid-October.

According to GM, the recall follows 13 battery fire reports and can occur if both defects are present in the battery module.

In a statement, GM said LG in South Korea is a “valued and respected” supplier for Detroit automakers. “Our engineering and manufacturing teams continue to work together to accelerate the production of new battery modules and will begin repairing customers’ vehicles this month,” Sylpan Amine, GM Global Purchasing Vice President, said in a statement. That’s it. “

Battery firing and recall was a shameful setback for GM, who has a high goal of switching from an internal combustion engine to a battery-powered vehicle.

To gain leadership in the US electric vehicle market share, GM plans to spend $ 35 billion to deploy more than 30 new battery vehicles worldwide by 2025. The company states that it aims to manufacture only electric vehicles by 2035.

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

GM signs a contract with LG to pay for volt battery recall | WGN Radio 720

Source link GM signs a contract with LG to pay for volt battery recall | WGN Radio 720

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