A Billion Dollar Cost: GM Should Recall All Chevrolet Bolts

Saturday 21 August 2021

Billion dollar cost
GM Should Recall All Chevrolet Bolts

General Motors can’t control the Chevrolet Bolt EV’s electric battery burn problems. After nearly 70,000 cars were ordered in 2020, there are now a few thousand more. The costs are enormous, the damage to the image should not be less.

A fire hazard disaster in the Chevrolet Bolt EV has become increasingly costly for the largest US automaker, General Motors (GM). The company has announced that all Bolt EV models – including the latest model variants – must now be recalled. In addition to the approximately 69,000 electric vehicles built between 2017 and 2019 that were pre-ordered for repair, there are now about 73,000 newer models. The manufacturer estimated the additional costs at about one billion dollars (about 850 million euros).

The majority of the affected vehicles were sold in the United States, the rest in Canada. The US Transportation Agency, NHTSA, has repeatedly warned owners not to park their cars in garages or near homes due to the risk of battery fires.

General Motors aims to be a leader in e-mobility

It’s too expensive for General Motors—in the last quarter, Bolt EV recalls cost the company $812 million. GM first launched a recall in November 2020 to fix the issue. Then the US traffic authorities again warned of the danger of fire. Although repairs have already been made, there have been other instances of Bolt models that have caught fire, according to NHTSA. The batteries come from LG in South Korea.

The US automaker aims to take a leadership role in e-mobility. In June, the group increased its investment plan for the period up to 2025 by 30% to US$35 billion (€29.76 billion). The main objective is to promote the development of electronic vehicles and technologies related to autonomous driving.