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GM expands Chevy Bolt EV recall for fire risk, will take US$1-billion hit

Reports of fires in newer electric vehicles sees safety program widened by another 70,000 cars

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General Motors said on Friday it would take a hit of US$1 billion to expand the recall of its Chevrolet Bolt electric vehicles due to the risk of fires from the high-voltage battery pack — a blow for the largest U.S. automaker as it seeks to ramp up EV sales.

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The Detroit company also said it would indefinitely halt sales of the EVs due to the issue and will seek reimbursement from battery supplier LG. The latest recall covers 73,000 vehicles from model years 2019 through 2022.

“The reserves and ratio of cost to the recall will be decided depending on the result of the joint investigation looking into the root cause, currently being held by GM, LG Electronics, and LG Energy Solution,” LG said in a statement, referring to its subsidiaries.

LG added that it is actively working with its client and partners to ensure that the recall measures are carried out smoothly.

Earlier this year, Hyundai said it would spend US$900 million to replace LG batteries in some 82,000 EVs due to fire risks.

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On Friday, GM said the recall covers all remaining Bolt vehicles not previously recalled in July. GM said it will replace defective battery modules in Bolt EVs and EUVs with new modules. The US$1-billion price tag for the latest recall comes on top of US$800 million GM said previous Bolt recalls had cost.

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GM and LGES have a joint venture, Ultium Cells LLC, that is building battery cell plants in Ohio and Tennessee, with plans to add two more after that. GM has said it will use a different-generation battery when it launches electric Hummer and Cadillac vehicles over the next year.

In July, GM issued a recall for nearly 69,000 Chevrolet Bolts for fire risks after reports of two fires and said it would replace defective battery modules as needed. Friday’s action expands the population of vehicles for the same issue.

The new recall includes 9,335 Bolt EVs from model year 2019 that were not included in the previous recall and 63,683 2020 to 2022 model year Chevrolet Bolt EVs and EUVs.