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LG To Cover $1.9B In Chevy Bolt EV Battery Replacement Costs For General Motors

LG Electronics Inc. has agreed to reimburse General Motors for costs and expenses associated with the large-scale battery fire recall of the Chevy Bolt EV and Chevy Bolt EUV.

Chevrolet Bolt EV battery pack

In a statement released Tuesday, GM confirmed LG Electronics Inc. would cover $1.9 billion of the $2 billion in costs associated with battery module fire recall. The costs will be split between LG Chem, the Korean company’s chemicals subsidiary, and LG Electronics Inc., which is tasked with assembling the lithium-ion pouch battery cells into the modules.

“General Motors Co. announced today it has reached an agreement under which LG Electronics Inc. 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,” the statement said.

“As a result of the agreement, GM will recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2.0 billion in charges associated with the recalls.”

Aftermath of a Chevy Bolt EV battery fire in Georgia

Shilpan Amin, GM’s vice president of Global Purchasing and Supply Chain operations, said the automaker is now accelerating the production of new replacement battery modules and will begin repairing customer vehicles this month.

The recall initially involved a limited number of Chevy Bolt EV vehicles before GM expanded the recall in August to include all Chevy Bolt EV and Bolt EUV models manufactured between the 2017 and 2022 model years. The recall includes about 140,000 vehicles.

The battery fires in affected vehicles are caused when a torn anode tab and folded separator are present within one or multiple battery cells. It’s not entirely clear how this manufacturing defect materializes, however GM said previously that it was working with LG to help clean up the manufacturing process at the two battery plants that supply modules for the Bolt EV and Bolt EUV, which are located in Michigan and South Korea. GM restarted production of the battery modules used in the Chevy Bolt EV and Bolt EUV late last month.

GM’s executive vice president for Global Product Development, Purchasing and Supply Chain, Doug Parks, previously outlined plans to push a new advanced diagnostics software to affected vehicles in the near future, which will identify potential battery defects early.

“Resuming battery module production is a first step and we’ll continue to work aggressively with LG to obtain additional battery supply,” Parks said. “In addition, we’re optimistic a new advanced diagnostic software will provide more convenience for our customers.”

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Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. Man those Bolts are ugly!

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  2. Hmm, going back and reading my posts when the recall was announced, this settlement sounds awfully familiar to what I posted would happen. This site presented an $800M loss for GM, which I posted was temporary, and LG in the future would be paying it back… Hmm, another one I got right…

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    1. What’s most disappointing is the articles are posted as fact and final so they can claim to be the first to report. And the articles never shed light on the information being preliminary and the information is likely to change.

      Top it off, there are the haters who’ll run with that information as fact and hate on GM every chance they get. Case in point, see first comment.

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      1. “Top it off, there are the haters who’ll ~ hate on GM every chance they get”

        Sam!!!

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      2. The batteries were engineered and built by LG. I would’ve be surprised if they didn’t pick up the tab.
        I’m sure that besides suing to be reimbursed, GM made it known that they would phase out LG’s involvement in the next generation of Ultium if they didn’t absorb the costs of the battery swap. That’s billions more in potential lost revenue.

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        1. Your an idiot Andy

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    2. Gee. Don’t break your arm patting yourself on the back.

      Reply
      1. I am quick to admit when I am wrong, and likewise when I am right.

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    3. All hail the prophet. Give thanks and sing praise that he speaks his wisdom to the common people here. The prophet is all knowing. 🤲🙏✝️

      Reply
  3. This is good news for GM in a big way. Can we say class-action lawsuits? So all these people who will (or have already) run out and hire an attorney to sue GM for millions due to mental anguish will now have LG to go after more than GM. By LG agreeing to settle this with them paying nearly all the costs of the recall (which they should based on what I’m reading), the people suing can more aggressively go after LG instead of GM. For those who’s cars did catch fire and especially for those who lost their homes, they deserve to get an appropriate amount out of this. But for those who will jump on the bandwagon and claim mental pain and suffering as they continued to drive their cars, let them deal with LG.

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    1. In order to win such a lawsuit, for mental anguish would be hard to prove, as you have have to show hardship and damage.

      Telling a jury ” I’m mad and Hurt” is not enough. You have to prove it, did this situation put you into therapy? and then to get a punitive award, you need to have some sort of recklessness or negligence that can be proven against the defendant. The amount of fires is still small (13 out of 147000), and when you look at what GM knew and when they knew it, this is again hard to prove GM or LG took action to damage the customers. Actually when you look at the scope of the recalls, and when the first took place, I think it would be hard to say GM did absolutely the best job they could with a bad supplier issue.

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      1. Let the “Discovery Process Begin”. Then and only then will GM / Chevrolet / LG Solve the problem of the Bolt Battery problems. All you see now in print is PR & Damage Control. When it comes down to it, GM has not begun to solve the problems.

        GM does not want to tell the Customers anything of substance. Nor have they responded in a timely manner or sent me any confirming e-mails. The possibility of a Swap or even a purchase of another vehicle has all but dried up.

        My community does not allow for GM’s suggestions of what should be done by the customers. Any day of the week they want my Bolt Back they only need to contact me. It sits hardly used because I am unable to use it for the reason I bought it. It is severely Range Limited & is a Fire Risk.

        If GM / Chevrolet / LG makes 1 more mistake, their future as an Electric Car Company / Battery supplier is very much damaged.

        From an engineering standpoint, they have a distance to go to make the “Consumers Whole” – a simple matter they are trying to dodge.

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        1. Q: Tom what’s the difference between a regular lawyer and a Pro Bono Attorney?
          A: A regular Lawyer says: I have reviewed your case and I’m going to need a $3,000 retainer to start work on it.
          A Pro Bono Attorney says: I have reviewed your case, and I think I could talk the Judge into only giving you 5 years. You’ll be out in 3 on good behavior.

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          1. The difference is a regular lawyer as long as it’s not a public pretender is actually decent. A pro bono lawyer is someone who doesn’t give a damn because they were forced to take the case for free hope this helps you.

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          2. You have no clue what you are talking about. You give these questions and answers like what you say are fact but you are clueless on the subject you are trying to speak on. Stick to politics it makes you seem like less of a douche

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        2. “Let the “Discovery Process Begin”. Then and only then will GM / Chevrolet / LG Solve the problem of the Bolt Battery problems. All you see now in print is PR & Damage Control. When it comes down to it, GM has not begun to solve the problems.”

          LOL what? They have communicated What the issue was and the process they took to rectify it.
          It’s not hidden.

          Do you know what the 880 and 881 Emails are? You should as they have sent those out to all Bolt owners. No? Then you are either not part of the first wave of Bolt battery replacements, because your Bolt was made outside of the Highest Risk packs, or you don’t have a Bolt to begin with.

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        3. Wrong, Wrong, Wrong, and Wrong Making the customers whole again means restoring the performance and reliability to the vehicle, new battery’s more then covers that, and as a matter of fact the 2017 to 2019 Bolts will end up with almost 10% more range then they paid for (paid for 238, end up with 259). Also Bolt always had terrible residuals because most were sold well under sticker price, and therefore hard to prove damage there.

          Having to temporarily limit range to increase safety is not damage, and very car on the road has a certain fire risk, actually Tesla S and X far higher than Bolt statistically. Some people I have talked to are still charging to 100%, as they have since day 1 and no problems.

          This situation will never make it to court, as GM and LG are rectifying the problem and making customers whole. Cases involving this will likely be dismissed before it ever makes it to discovery.

          As for GM and EV’s this certainly is not good for their reputation, but that will blow over as long as new Ultium vehicles prove to be safe.

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      2. Donavan: I would agree totally with you there. But we all know this is a country where people love to jump into lawsuits. Sad but true.

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        1. Where is this country is going? The law is the law is the law… In a case like this, let’s say you had to rent a car to get by, you could make a case GM is responsible for this cost. By law though, if there is a defective product, and GM makes moves to make it right as quickly as possible which they have, there is no legal standing for any responsibility beyond fixing the product. When you go to court and sue a company, you have to prove cause and damage, in this case I am sure some will try, but just like all the piston slap lawsuits from the early 2000’s they will lose. Heck I had a 1999 Silverado 2500 with a 6L, and that thing had piston slap at 10K miles, interestingly, now my brother has it 350K miles later, and its still running tick tick tick, just fine. The piston slap never really got worse, and was just annoying to listen to at idle, but dozens of class action lawsuits have been thrown out because this annoying noise is not damage…

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  4. Good for LG picking up the tab.

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    1. LG was not being generous in this settlement, as LG always fights tooth and nail if they think they have standing, but this time LG knew they were in trouble, GM found the defects, and therefore LG could end up not only paying the cost of the recall in a court judgement, but also reputation damage to GM which the sky is the limit on what that is worth.

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      1. Lol you think their reputation is worth a lot?

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    2. I think LG realized they’re in on the ground floor of this whole “electronic mobility” wave and if they failed here it would be a deathknell for them on this front going forward. They’re taking one on the chin here because they are confident it will pay out tenfold in the future

      Reply
  5. Oh man. Imagine what the conversations between GM and LG were like with $2 billion on the line. Definitely not a stress-free job.

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    1. Ya, these were conversations escalated all the way to the CEO of both companies. Seems like the solution is about as good as can be expected for GM, and for LG, it saves them a lengthy legal battle that would likely end in a larger settlement. I just wonder for LG, what about E-Tron, Mach E, and ll the other cars running around with the same battery cells? Is there some risk there?

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      1. A Volkswagen ID.3 with an LG pack caught fire a few months ago.

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        1. 2 of them so far, 1 E-Tron that I know of, and a Porsche Taycan, all LG cells.

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          1. The Kona has also suffered significant battery fires – LG Chem. It might depend on the year, factory location, batch, etc.

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  6. GM threatened covid-19 vax mandate at LG Chem plant or settle for 1.9 billion. That’s the true story.

    Reply
    1. Is Covid all you talk about? It’s a virus people die now get over it.

      Reply
  7. Yes, Hyundai is recalling and replacing batteries in their electric cars. Hey, on previous GM bashing..I have several GM vehicles…I like them but they can be a pain in the a&& as far as maintenance and repair is concerned. I recently sold my 2014 Siverado LTZ, partly because of the 5.3 Vortec engine oil burn issue. I took a beating on it. I traded in my 2005 Corvette base convertible towards a 2021 Bronco Sport. The Vette was a pleasure to drive but was a maintenance and repair pain in the a&&..!! I bought a 2009 Chevy Malibu new. What a complete pain in the a$$ as far as maintenance. For some strange reason. I like GM vehicles. Must be something wrong with me….lol…Now this Bolt situation. Things happen; and it’s why they put erasers on pencils. But I think they have to get their act together…..

    Reply
    1. John D: Can you expand on the “Maintenance and repair” stuff is that you are talking about? I see a pattern in what you are saying and so I’m interested to learn if these were “problems” or “upkeep” or what?

      All cars and all brands do and can have issues. Personally, I’ve had super good luck with GM vehicles (especially Buick) over the years. And you want to talk about maintenance and upkeep? Just look at the European brands.

      Reply
  8. If you want a new OLED or appliances get them now before LG raises prices to cover their butts,

    Reply
  9. The terms of the deal are unknown. That tab they talk about could be be over a 25 year term. Nobody but gm knows. And they aren’t telling. Best advice stay away from gm EV’s!

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    1. *rolls eyes*

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    2. GM EV’s have a better record than Tesla S and X, which IIHS rates as the modern “vehicles” most likely to catch fire in their class, without a crash.

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  10. Hi Dan. Ok. 74 Camaro LT Type, I bough tit in1990 with 29K miles, 350-350 auto trans, Ac. Have 42K miles on it now. Put $6K into it for mechanical restoration. New everything!! Converted to R-134A. While it’s an older car, it has low miles and was mostly garaged and run regularly. 2014 Silverado 1500 LTZ, loaded. Bought it in 2016 with 2oK miles from my meticulous car guy neighbor for $40K. It had the 5.3 Vortec eng oil burn issue. I changed the oil with the best synthetic and installed a Rangetec device for $200 to keep it in V-8 mode full time. That helped. I got stuck in 4WD low while in NJ; thankfully a mile from a Chevy dealer.!! U gotta love that. They replaced the motor that engages the 4WD. I forget name of it. Hmm. SEveral hundred dollars. This was in 2018 with 27K miles. I didn’t put it in 4WD. IT went into 4WD low when this part failed and I couldn’t get it out. Stuff happens. I sold it for a beating. 2009 Malibu. 4cyl. decent car. No transmission dipstick. I know some manufacturers do that, BMW etc. For a $20K car at the time, it was mediocre at best. 1988 Vette convertible. Bought it in 2007 with 75K miles. Has 78K now. Mechanically restored it. Fuel pump and strainer bag, gas filter, Rims are aluminum and I have constant slow leaks in tires. Even with 2 new front tires. They’re the white 35th anniv wheels so I want them on the car. Had trouble with factory alarm, had to install aftermarket, brake issues. needed new master cyl and PB booster. Currently I have a cold start issue that is either the rubber fuel lines near gas tank and fuel pump, or the fuel pressure regulator. Decent running car. Fast…rides hard. Handles Ok. I put a lot of money in it. I can go on. I have an 06 Pontiac Solstice, auto, 26K miles. Had the door handle issue. I love theses dang things but they’re a pain in the a&&.. lol….

    Reply

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