GM agrees to receive 2.3 trillion won in electric vehicle recall fees from LG

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General Motors, an American automaker, said it has agreed to receive 2.3 trillion won from LG in relation to a series of electric vehicle fire accidents.

It is said that most of the recall costs were to be received from LG, which is 800 billion won more than the amount agreed by LG.

Correspondent Kim Do-kyun.

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This is GM's electric vehicle, the Chevrolet Volt, using batteries from LG Energy Solutions.

GM announced that it had agreed to receive up to $1.9 billion in compensation from LG Electronics, and KRW 2.7 trillion in Korean money, for the recall costs caused by the successive fire accidents of the car model.

This is more than 800 billion won compared to the 1.4 trillion won that LG announced earlier.

The recalled vehicles are all Bolt vehicles that started production in 2016, totaling about 144,000.

The recall cost was estimated at $2 billion, or about 2.4 trillion won, and according to GM's announcement, most of the cost seems to be borne by LG.

As a result of a joint investigation between the two companies, it is presumed that the cause of the fire was determined to be a 'rare manufacturing defect' of the battery, such as a sliding separator and disconnection of the negative electrode tab.

Foreign media reported that these defects occurred in batteries manufactured at LG Energy Solutions' plants in Korea and Missouri, USA.

GM said, "LG is a valuable and excellent supplier," and expects to continue working together to start repairs on customer vehicles this month.