Oct. 12 (UPI) — General Motors South Korean battery supplier LG Electronics agreed Tuesday to reimburse up to $1.9 billion for electric Chevrolet Bolt recalls.
The deal reached Tuesday will help the Detroit-based automaker offset $1.9 billion of $2 billion in charges associated with the recall.
“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” GM Vice President Shilpan Amin said in a statement. “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.”
The initial recall came in July after two vehicles caught fire and expanded to all Bolts in August.
“The root cause of the rare circumstances that could cause a battery fire is two manufacturing defects known as a torn anode and folded separator, both of which need to be present in the same battery cell,” Chevrolet said in a statement last month. “LG has implemented new manufacturing processes and has worked with GM to review and enhance its quality assurance programs to provide confidence in its batteries moving forward.”