DETROIT (AP) - LG Electronics has reached a deal with General Motors to pay as much as $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to battery fires.
The automaker announced the deal in a statement early Tuesday. GM says it will show a $1.9 billion to $2 billion estimated recovery in its third-quarter earnings that will offset charges associated with the recalls. In August GM expanded a previous recall to more than 140,000 Bolt electric vehicles sold worldwide since 2016 because a battery manufacturing defect could cause the vehicles to catch fire.
The recall follows reports of 13 battery fires, GM said, which can occur when two separate defects are present in the battery modules.