GM Keeping Production Paused Due To Bolt EV Recall
The Chevy Bolt EV recall has caused a world of trouble for General Motors. During a time when the coronavirus (COVID-19) pandemic and a global chip shortage is hindering automotive production and supply chains, General Motors is also dealing with the recall of thousands of electric vehicles.
As a result of the recall, General Motors paused production of the Bolt EV. However, it seems as though that pause will last longer than initially planned.
Production pause extended two weeks in the wake of Bolt EV recall
On October 13th, 2021, General Motors announced that it will extend the halt of Chevy Bolt EV production by an additional two weeks, according to a report from Reuters. General Motors needs more time to produce battery modules to replace the faulty modules found in the Bolt EV recall.
The Bolt EV is built at General Motors’ Orion Assembly plant in Michigan. The Orion plant has been shut down since August 23rd, 2021. Extending the production pause will keep the plant closed through the end of October.
The Bolt EV was spontaneously combusting
The Bolt EV recall was due to faulty battery modules that caused at least 13 vehicles to burst into flames spontaneously. In one instance, a Bolt EV fire burned two cars next to it, including a Maserati, in a public parking lot.
At one point, General Motors warned Bolt EV owners not to leave their cars parked indoors or leave the car charging overnight. The warning was meant to prevent EV owners’ homes from burning down should the vehicle suddenly burst into flames while the owner was away.
As you might expect, Bolt EV owners were not very happy with General Motors once they realized what was happening. Many owners demanded that the automaker buy back their cars so that they would not live in constant fear of a sudden and dangerous fire.
It is unclear if General Motors will actually buy back any vehicles. It appears that Bolt EV recall is focused on replacing battery modules and then returning the vehicles to customers. However, considering the circumstances and the severity of the malfunction, battery replacement may not be enough for some Bolt EV owners.
We would not be surprised if affected customers banded together and launched a class-action lawsuit against General Motors, but as far as we know, that has not happened yet.
LG is going to cover the cost of the recall
The battery modules used in the Bolt EV are produced by LG electronics and their subsidiary LG Chemical. When the fiery malfunctions started, General Motors estimated that the Bolt EV recall would cost the company $2 billion. The automaker also did not hesitate to point the figure squarely at LG, placing the entire blame on faulty battery modules it produced.
After General Motors’ leadership met with LG, the two companies came to an agreement in which LG would cover $1.9 billion of the total Bolt EV recall cost.
While General Motors will recover most of the money lost on the recall, it remains to be seen if customers will return to the Bolt EV once it resumes production.