GM announces agreement to compensate LG for 2.3 trillion won in electric vehicle recall

U.S. automaker General Motors announced that it has agreed to receive up to $1.9 billion in compensation from LG Electronics in relation to the Chevrolet Bolt electric vehicle fire recall, and up to KRW 2.273 trillion in money.

According to Bloomberg and CNBC, Silpan Amin, GM's vice president of global procurement and supply chain, said, "LG is a valuable and excellent supplier, and we gladly reached this agreement."

The amount of compensation announced by GM is significantly different from the amount previously disclosed by LG.

LG Group announced that LG Energy Solutions and LG Electronics will share about 1.4 trillion won in total and about 918 million dollars in recall costs, each of which is about 700 billion won.

GM has decided to recall 143,000 Volt electric vehicles produced after 2016 due to manufacturing defects in batteries produced at LG Energy Solutions' plants in Korea and Michigan, USA.