GM Says It Will Recover $1.9 Billion of Bolt-Recall Costs From LG

GM has recalled all of the roughly 142,000 Bolts that the auto maker has produced since 2016.

Photo: Justin Sullivan/Getty Images

Oct. 12, 2021 8:39 am ET

General Motors Co. said it will recover from supplier LG Electronics Inc. nearly all of the $2 billion cost of recalling Chevrolet Bolt electric models for the risk of battery fires.

GM said Tuesday that LG will reimburse the car maker because of manufacturing defects in battery modules supplied by the Korean company. GM in August expanded a previous recall to include all of the roughly 142,000 Bolts that the auto maker has produced since 2016, citing a likely manufacturing flaw that has been linked to at least 13 fires.

In its third-quarter earnings later this month, the Detroit auto maker expects to report a recovery from LG of about $1.9 billion of the $2 billion in charges related to the safety action, it said.

General Motors plans to phase out nearly all of its gas and diesel vehicles by 2035. Leading that transition is the first fully electric Cadillac. WSJ’s Mike Colias visited a GM testing site for a ride and an exclusive interview with GM’s President Mark L. Reuss. Photo Illustration: Alexander Hotz

Corrections & Amplifications
GM said Tuesday that LG will reimburse the car maker because of manufacturing defects in battery modules. An earlier version of this article incorrectly said GM made the announcement Monday. (Corrected on Oct. 10)

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