GM reaches an agreement with LG

Released on 12. 10. 2021

  • The US auto giant General Motors (GM) and the Korean supplier LG have come to an agreement. Photo: Matt Rourke

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It’s about the recall of fire-endangered electric cars from General Motos. Now the debacle is over after the battery supplier LG pays the billions in costs.

Warren / Detroit (dpa) – The US automaker General Motors (GM) has agreed on billions in compensation with the Korean electronics company LG due to problems with the batteries it supplies.

LG is paying for the costs related to the recall of fire-endangered electric cars of the Chevrolet Bolt EV type and its SUV version due to manufacturing defects, GM said on Tuesday in Warren near Detroit. In the third quarter, GM will show a special income of 1.9 billion US dollars (1.6 billion euros). This almost makes up for the approximately $ 2 billion in expenses for the recalls. GM shares gained around one percent in the pre-trading session.

It was only in August that GM announced that the debacle over the fire hazard in electric cars was costing the automaker more money and now all Bolt EV vehicles would have to be recalled, including the latest vintages. This concerns a total of around 142. 000 Cars. The majority of the affected vehicles were sold in the United States, the remainder in Canada. The US traffic safety agency NHTSA had repeatedly warned owners not to park their cars in garages or near houses because of the risk of battery fires. The first recall about the problem came from November 142.

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