Battery maker LG Chem has agreed to reimburse General Motors for most of the cost of recalling its electric vehicle following a series of incidents between 2017 and 2019 in which the cars caught fire as a result of battery flaws.
In August, the Detroit carmaker issued an expanded recall of the Chevrolet Bolt, following an initial recall in November last year after the US National Highway Traffic Safety Administration opened an investigation into three reported fires.
GM said on Tuesday that the agreement with LG Chem would offset $1.9bn of the $2bn in recall charges it planned to report for the third quarter of this year, adding that it was recalling a total of 140,000 Bolts.
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