General Motors Co. to recover from LG Electronics Inc. nearly $2billion of recalling Bolt EV models for battery fires issue, according to a report by The Wall Street Journal on Tuesday.
- GM stated that LG would reimburse the carmaker after manufacturing defects in battery modules supplied by the Korean firm.
- GM in August widened a previous recall to include nearly 142,000 Bolts that the automaker has produced starting 2016.
- In its Q3 earnings later this month, the Detroit-based automaker expects to report recovery from LG of nearly $1.9 billion of the $2 billion in charges associated with the safety action.
- The Bolt recall has been a major misstep for GM in its efforts to emerge as a leader in electric vehicles. GM is planning to launch dozens of new electric models in coming years and seeks to beat Tesla in U.S. sales.
GM stated that the defect involved a potential manufacturing problem at LG factories that led to two flaws in certain battery cells that could potentially lead to a fire. GM up +1.50%, LG Electronics Inc. down -1.61% .