General Motors (NYSE: GM) announced today it has reached an agreement whereby LG Electronics 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. (Confirmed: General Motors to Recall more Bolt EVs at $1B Cost; NHTSA – Urgent Fire Recall Again on 2017-2019 Chevrolet Bolts; GM and LG Energy to Build Second Battery Cell Plant in US)
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.
“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain. “Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month.”