GM to seek compensation from LG for massive Bolt recall
General Motors plans to ask battery supplier LG Chem to reimburse it for the cost of a massive recall of all Chevrolet Bolts due to faulty battery packs prone to catching fire, Kallanish reports.
GM is recalling all 2019 Bolts not covered by its previous two recalls as well as the 2020-2022 models.
“In rare circumstances, the batteries supplied to GM for these vehicles may have two manufacturing defects – a torn anode tab and folded separator – present in the same battery cell, which increases the risk of fire,” the company says.
It further notes that this added recall will add about $1 billion to the extant $800 million recall cost.
LG will be expected to shoulder a portion of that cost, GM says.
“After further investigation into the manufacturing processes at LG and disassembling battery packs, GM discovered manufacturing defects in certain battery cells produced at LG manufacturing facilities beyond the Ochang, Korea, plant,” GM says. “GM and LG are working to rectify the cause of these defects. In the meantime, GM is pursuing commitments from LG for reimbursement of this field action.”
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Anonymous
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Anonymous