GM survives electric car recall with a black eye

General Motors voluntarily extended the recall of the Chevrolet Bolt EV to the remaining 2019 model year vehicles and all 2020-2022 model year vehicles, including the Bolt EUV. It can therefore be stated that GM has recalled all of its electric cars in order to take appropriate action against an increased risk of fire. In the meantime, it has been clarified who will bear the costs.

In a joint agreement, General Motors and LG Electronics to understand that latter the costs and expenditure in connection with the recall of Chevrolet Bolt E cars due to manufacturing errors in the Battery modules supplied by LG will take over. As a result of the agreement, GM will report an estimated refund in its third-quarter earnings that will offset $1.9 billion of $2.0 billion in costs related to the recalls. General Motors is thus getting by with a black eye from what is probably the largest e-car recall in the world.

“LG is a valued and respected supplier to GM and we are excited about this agreement,” said Shilpan Amin, GM vice president, global purchasing and supply chain. “Our engineering and manufacturing teams continue to work together to accelerate production of new battery modules, and we expect to begin repairing customer vehicles later this month.”

Decisive for the recall was the fact that in rare cases the batteries supplied to GM for these vehicles can have two manufacturing defects – a cracked anode tab and a folded separator – in the same battery cell, which increases the risk of fire. As a precaution, GM will replace defective battery modules in Chevrolet Bolt EVs and EUVs with new modules.

In Germany, the recall includes around 1.500 vehicles sold between 2017 and 2019 under the Opel brand and model name Ampera-e. Worldwide there is talk of around 142.000 2017 and newer General Motors vehicles. Similar problems already existed at Hyundai. Also with battery cells from LG.

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