LG units say results accounted for US$918 million costs from GM's Bolt recall

October 12, 2021 Business
South Korea's LG Chem Ltd and LG Electronics Inc said on Tuesday their latest quarterly results accounted for costs of about 1.1 trillion won (US$917.66 million) in connection with General Motors Co's Bolt EV recall.

LG Chem, whose wholly owned battery unit LG Energy Solution (LGES) supplies batteries to GM, said it had accounted for recall-related costs of about 620 billion won (US$517.23 million) in its earnings results for the July-September period.

LG Electronics, which assembles LGES cells into battery modules and packs, said it had accounted for about 480 billion won in similar costs.

In August, GM expanded a recall of its Bolt electric vehicle to more than 140,000 cars to replace LG battery modules due to fire risk, at a cost it estimated at US$1.8 billion. The automaker said it would seek reimbursement from LG.
Source: https://www.channelnewsasia.com

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