General Motors and LG decided to create a $150 million fund to compensate Chevrolet Bolt owners after a faulty battery caused some electric cars to catch fire.
The $150 million is part of a legal settlement between GM and Bolt owners who filed a class-action lawsuit against the Michigan automaker in 2020 for allegedly selling a car with a defective battery. Bolt owners who install a special program offered by GM to fix the battery issue could get $1,400 from the fund, according to court documents filed late Thursday in Michigan. Bolt owners who sold their cars before that date, or drivers who leased a Bolt before that date, are eligible for a $700 payment, according to the documents.
“GM, LG Energy Solution and LG Electronics have agreed to a settlement with plaintiffs to resolve lawsuits related to the Bolt EV battery recall,” GM said in a statement on Friday. “As a result, Bolt owners who received a replacement battery or who installed the latest advanced diagnostic software may be eligible for compensation.”
GM partnered with subsidiaries of South Korea-based electronics company LG to create the batteries used in the Bolt, which debuted in 2015. In the following years, drivers noticed that their cars would spontaneously catch fire, prompting owners to file complaints about the problem. To General Motors and the National Highway Traffic Safety Administration.
GM attributed the fires to a manufacturing defect in the battery modules, which the automaker said caused a short in the battery cell. Some of the incidents occurred at Bolts containing battery cells made in South Korea, while other fires came from cells made at an LG plant in Michigan. In 2021, GM recalled all bolts all over the world.
GM sold just under 25,000 bolts in the United States before asking dealers to stop selling them. Company Car production stopped In December of 2023, this was a major financial and reputational hit for General Motors as automakers raced to enter the electric vehicle market. The automaker spent $1.8 billion to recall the Bolt due to battery issues.
The Bolt was one of GM’s first all-electric vehicles, second only to the Spark EV, which debuted in June 2013. Since then, GM has introduced the electric Hummer, Chevrolet Silverado, and Cadillac Lyriq.
GM said it plans to stop manufacturing Gas-powered cars By 2035, it will spend $35 billion to roll out more than 30 new electric cars globally by 2025, including about 20 in North America. By the end of the decade, GM expects to generate an additional $90 billion in annual revenue from electric vehicles.
(Tags for translation) GM