US automaker giant General Motors is recalling a further 73,018 Chevrolet Bolt electric vehicles from Canada and the US over combustion risks. The move will cost the company nearly $1 billion.
“General Motors is voluntarily expanding the recall of Chevrolet Bolt electric vehicles to cover the remainder of 2019 and all 2020-2022 vehicles, including the Bolt EUV (Electric SUV) model. In rare cases, the batteries supplied to the company for these vehicles may have two production defects… which increases the risk of fire,” the automaker said in a statement posted on the company’s website on Friday.
The risk comes from the high-voltage battery pack installed in the vehicles in question. Replacing defective parts will require additional costs of an estimated $1 billion, the company noted.
General Motors already recalled nearly 69,000 Chevrolet Bolt cars after reports of fires last month, which cost it some $800 million. The company now says there had been a total of 10 Bolt fires.
The US’ largest automaker said it would halt sales of its electric vehicles while it solves the fire risk issue. It is also set on demanding compensation from the battery supplier, LG.
“The reserves and ratio of cost to the recall will be decided depending on the result of the joint investigation looking into the root cause, currently being held by GM, LG Electronics and LG Energy Solution,” LG said in a statement, as cited by Reuters.
LG Electronics Inc. recently cut its second-quarter operating profit by over one-fifth to reflect the costs of the General Motors recalls.
Earlier this year, Hyundai Motor Company, which also uses LG batteries, reported it would move to replace them in some 82,000 of its electric vehicles, citing fire risks.
For more stories on economy & finance visit RT’s business section