WASHINGTON, Oct 13 (Businesshala) – General Motors (GM.N) said on Wednesday it will increase production of its electric vehicle Chevrolet Bolt by two additional weeks as it prioritizes accelerating production of new battery modules and repair recalls. works to give.
In August the largest US automaker recalled Bolt from more than 140,000 vehicles to replace battery modules and reduce fire risks. GM’s Orion assembly plant in Michigan, which manufactures the Bolt, has been dormant since August 23 and will be down until at least the end of October.
GM also said it would cut production for an additional three weeks of the Chevrolet Equinox at its Ramos assembly plant in Mexico due to a global shortage of semiconductors.
GM said Tuesday that its battery partner, South Korea’s LG Electronics Inc. (066570.ks), agreed to reimburse $2 billion for estimated costs and expenses associated with the Bolt recall.
The US automaker did not say how much LG would pay, but said it would recognize an estimated recovery in third-quarter earnings that would offset $1.9 billion of the total charges associated with the recall.
It follows announcements earlier in the day by GM’s battery suppliers LG Chem Ltd (051910.ks) and LG Electronics that the two South Korean firms would bear the combined cost of $1.2 billion associated with the recall.
GM said on September 20 that battery production for the Bolt had resumed and that battery replacements were expected to begin in mid-October.
GM said LG has implemented new manufacturing processes and worked with GM to “review and enhance its quality assurance programs to provide confidence in its batteries going forward.”
Within about 60 days, GM will launch a new “advanced diagnostic software package that will enhance the battery charging parameters available on existing guidance,” it said.