Press Release: General Motors, LG Electronics Reach Agreement on Bolt EV Recall Costs
October 12 2021 - 8:41AM
Dow Jones News
General Motors, LG Electronics Reach Agreement on Bolt EV Recall
Costs
Tue, October 12, 2021
LG will reimburse GM for recall costs and expenses
WARREN, Mich. - General Motors Co. (NYSE: GM) announced today it
has reached an agreement under which LG Electronics Inc. will
reimburse GM for costs and expenses associated with the recall of
Chevrolet Bolt EVs and EUVs due to manufacturing defects in battery
modules supplied by LG.
As a result of the agreement, GM will recognize an estimated
recovery in its third-quarter earnings that will offset $1.9
billion of $2.0 billion in charges associated with the recalls.
"LG is a valued and respected supplier to GM, and we are pleased
to reach this agreement," said Shilpan Amin, GM vice president,
Global Purchasing and Supply Chain. "Our engineering and
manufacturing teams continue to collaborate to accelerate
production of new battery modules and we expect to begin repairing
customer vehicles this month."
General Motors (NYSE:GM) is a global company focused on
advancing an all-electric future that is inclusive and accessible
to all. At the heart of this strategy is the Ultium battery
platform, which will power everything from mass-market to
high-performance vehicles. General Motors, its subsidiaries and its
joint venture entities sell vehicles under the Chevrolet, Buick,
GMC, Cadillac, Baojun and Wuling brands. More information on the
company and its subsidiaries, including OnStar, a global leader in
vehicle safety and security services, can be found at
https://www.gm.com.
MEDIA CONTACT:
Jim Cain
GM Communications
313-407-2843
james.cain@gm.com
INVESTOR CONTACT:
Michael Heifler
GM Investor Relations
313-418-0220
michael.heifler@gm.com
Cautionary Note on Forward-Looking Statements: This press
release may include "forward-looking statements" within the meaning
of the U.S. federal securities laws. Forward-looking statements are
any statements other than statements of historical fact.
Forward-looking statements represent our current judgement about
possible future events and are often identified by words such as
"anticipate," "appears," "approximately," "believe," "continue,"
"could," "designed," "effect," "estimate," "evaluate," "expect,"
"forecast," "goal," "initiative," "intend," "may," "objective,"
"outlook," "plan," "potential," "priorities," "project," "pursue,"
"seek," "should," "target," "when," "will," "would," or the
negative of any of those words or similar expressions. In making
these statements, we rely upon assumptions and analysis based on
our experience and perception of historical trends, current
conditions, and expected future developments, as well as other
factors we consider appropriate under the circumstances. We believe
these judgements are reasonable, but these statements are not
guarantees of any future events or financial results, and our
actual results may differ materially due to a variety of factors,
many of which are described in our most recent Annual Report on
Form 10-K and our other filings with the U.S. Securities and
Exchange Commission. We caution readers not to place undue reliance
on forward-looking statements. Forward-looking statements speak
only as of the date they are made, and we undertake no obligation
to update publicly or otherwise revise any forward-looking
statements, whether as a result of new information, future events,
or other factors that affect the subject of these statements,
except where we are expressly required to do so by law.
(END) Dow Jones Newswires
October 12, 2021 08:26 ET (12:26 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
General Motors (NYSE:GM)
Historical Stock Chart
From Aug 2024 to Sep 2024
General Motors (NYSE:GM)
Historical Stock Chart
From Sep 2023 to Sep 2024