LG Electronics has agreed to reimburse General Motors up to $1.9 billion to recall and fix Chevrolet Bolt electric vehicles due to fire risks caused by faulty batteries provided by the South Korean supplier.
Problems with the Bolt – the company’s flagship mainstream EV – have led the automaker to recall every one of the electric cars since production began in 2016. Fixing the vehicles, including completely replacing some batteries entirely, is expected to cost $2 billion, GM said Tuesday. That’s up from a previous estimate of $1.8 billion.
The settlement between the companies is a major win for the automaker, which missed Wall Street’s expectations in the second quarter due to setting aside money related to the expected recall costs.