General Motors, LG Establish $150M Settlement Fund For Bolt EV Battery Issues: Report

General Motors Co GM and South Korea’s LG Energy Solution along with LG Electronics have reportedly agreed to establish a $150 million fund to support Chevrolet Bolt EV owners impacted by faulty batteries.

This settlement, detailed in documents filed in a U.S. court, aims to provide financial relief to affected vehicle owners, Reuters reported.

The Chevrolet Bolt EV, which debuted in 2015, utilized batteries supplied by LG as part of a collaboration with GM. 

However, starting in 2020, GM began recalling these vehicles following multiple reports of battery fires, the report noted.

The settlement resolves class action litigation linked to these recalls, offering compensation to owners who experienced battery replacements or installed advanced diagnostic software.

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GM stated that owners who had a battery replacement or installed the latest diagnostic software at authorized dealerships before December 31, 2023, may be eligible for compensation. 

Those who met these conditions could receive up to $1,400. Furthermore, owners who sold or ended their lease prior to the availability of the software solution and those who already had battery replacements are guaranteed a minimum of $700.

In 2021, GM announced an extensive recall campaign costing billions, addressing the fire risks associated with Bolt EV batteries. 

Price Action: GM shares traded lower by 0.11% at $45.12 at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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