Chevrolet Bolt EV Recall: GM and LG Agree to $150M Settlement

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Key Takeaways

  • GM and LG Energy Solutions settled for $150M to compensate Chevy Bolt EV owners for faulty batteries causing a global recall.
  • The recall affected 141,000 Chevrolet Bolt EVs and EUVs due to battery fire incidents from LG's South Korean and Michigan plants.
  • Owners will receive $1,400 if they had a battery replacement or software fix, and $700 if they sold or leased their car before the settlement date.

GM and LG Energy Solutions settled for $150 million to compensate Chevy Bolt EV owners for faulty batteries that caused a global recall.

The settlement comes from a worldwide recall due to battery fire incidents traced back to a manufacturing defect in LG-produced modules.

According to data published by the United States Department of Transportation, the faulty battery issue resulted in the recall of about 141,000 Chevrolet Bolt EVs and EUVs between late 2020 and 2021. These defects were said to be found in batteries from both LG’s South Korean and Michigan plants.

The settlement, pending judge approval, establishes a fund to compensate Bolt EV owners. Those who received a battery replacement or installed the software fix are eligible for $1,400. Owners who sold their car or leased before the settlement date will receive $700. This will provide relief to approximately 102,560 owners.

This agreement relieves affected owners who filed a class-action lawsuit against General Motors in 2020.

GM’s Chevy Bolt battery issues, coupled with low sales in the electric vehicle sector, have impacted GM’s EV push. Its market share dropped to 2.8% in Q1 2024 from 3.4% a year ago.

This trailed competitors like Tesla, with a 19% share, BYD, at 14.8%, and Volkswagen Group, with a 6.7% share, signaling a major setback in GM’s electric vehicle ambitions compared to rivals.

Despite the setbacks caused by the battery issues, GM says it remains committed to its electric vehicle strategy. The company plans to phase out gas-powered cars by 2035.

CNBC reports the automaker will spend about $35 billion on building over 30 new EVs globally by 2025.