General Motors (NYSE: GM) is expected to broaden its recent recall of Chevy Bolt EVs to include newer models due to a possible fire risk.
On Friday, GM announced that it has added another 73,000 vehicles manufactured between 2019 and 2022 and sold in both Canada and the US to the recall. The automaker also expanded the recall to include its recently launched Bolt EUV, which is a larger version of the vehicle. The initial recall affected approximately 69,000 of Bolt EVs produced between 2017 and 2019, with 51,000 of the units sold in the US.
The updated recall is now expected to affect the entire lineup of Bolt EVs ever produced by GM, and will add on another $1 billion in costs. This brings the total pricetag of the recall to $1.8 billion to replace all of the potentially defective battery modules. GM also said that it will be following up with reimbursement commitments from its battery supplier LG Energy Solution, which manufactured the defective batteries in Michigan and South Korea.
The latest recall is expected to cause difficulties for GM, especially given that it affects the automaker’s first mass-produced electric vehicle, particularly as it looks to completely electrify its entire lineup by 2035.
Information for this briefing was found via GM. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.