General Motors announced an agreement under which LG Electronics will reimburse GM for costs and expenses associated with the recall of Chevrolet Bolt EVs and EUVs due to manufacturing defects in battery modules supplied by LG.
As a result of the agreement, GM will book an estimated recovery in its third-quarter earnings which will offset US$1.9bn of $2bn in charges associated with the recalls.
“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.”