Battery Manufacturer LG to Pay GM $1.9 Billion Over Bolt Recall
The massive Chevy Bolt recall is going to cost the company that makes batteries for the electric vehicles quite the chunk of change.
LG Electronics Inc. has agreed to pay GM roughly $1.9 billion to cover costs and expenses related to the recall, according to The Detroit Free Press. GM has recalled some 140,000 electric vehicles because of a defect in battery modules manufactured by LG.
LG and GM Intend to Work Together to Resolve the Issue
Both companies signaled that they plan to continue to work together, despite the expensive snafu.
“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” Shilpan Amin, a GM vice president, said in a statement announcing the deal “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.”
GM announced in July that it was yet again recalling some 70,000 vehicles because of fire risks, a move that was initially expected to cost the company as much as $800 million. The recall later grew to 140,000 cars at an expected price tag of $2 billion.
“GM and LG confirmed the root cause of reported battery fires are two manufacturing defects known as a torn anode and a folded separator,” the Free Press’ Jamie LaReau reports. “Both defects must be present in the same battery cell for a fire to occur.”
Defective batteries have been cited in at least nine Bolt fires since 2020, all of which happened while the cars were turned off. The recalls also followed a viral video showing a car going up in flames in a suburban home garage.
GM said in November that it was rolling out a software update meant to reduce the risk of fires by limiting battery charges to 80 percent. It also said it would scrap a suggestion that Bolt owners do not park their cars inside because of the potential for fires.
The company eventually plans to add new battery modules in all 140,000 recalled vehicles. The recall - repaired Bolts will come with an eight-year or 100,000-mile warranty - is expected to take several months or more.
Stuck With a Defective Car? A California Lemon Law Attorney Can Help
Although the Bolt recall is more extensive and expensive than most, GM and other global car manufacturers call back millions of vehicles per year because of a wide range of defects. Fortunately, California car owners and lessors do not have to sit and wait for a recall to get their vehicles fixed.
The California lemon law requires car manufacturers to do a variety of repairs on vehicles while they are under warranty. It also requires the companies to buy back or replace cars that they cannot or will not fix.
If you have been stuck with a defective or malfunctioning vehicle, a California lemon law attorney at Bickel Sannipoli APC can help you fight back. We represent people across the state and have a long track record of successful results for our clients.