GM reaches deal with LG to pay for Bolt battery recall costs
ABC News
LG Electronics has reached a deal with General Motors to pay as much as $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to battery fires
DETROIT -- LG Electronics has reached a deal with General Motors to pay $1.9 billion to $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to the risk of battery fires.
The automaker, which announced the deal in a statement early Tuesday, says it will show the estimated recovery in its third-quarter earnings that will offset charges for the recalls.
In August GM expanded a previous recall to more than 140,000 Bolt electric vehicles sold worldwide since 2016 because a battery manufacturing defect could cause the vehicles to catch fire.
The company said at the time that in rare cases, batteries that have two manufacturing defects can cause fires.
