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Oct. 12, 2021, 8:27 a.m. EDT

GM and LG Electronics reach agreement on Bolt EV recall costs

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By Ciara Linnane

General Motors Co. /zigman2/quotes/205226835/composite GM +2.56% said Tuesday it has reached an agreement with Korea's LG Electronics Inc. /zigman2/quotes/209966407/delayed KR:066570 +3.90% over the costs of recalling Chevrolet Bolt electric vehicles and electric utility vehicles because of manufacturing defects in battery modules that LG supplied to GM. As a result of the deal, GM said it would recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2.0 billion of charges stemming from the recalls. GM said in September that it was recalling the remaining 2019 and 2020 to 2022 model year vehicles, including the Bolt EUV because of the battery issue. GM shares are up 1.1% premarket and have gained 39.5% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.61% has gained 16%.

/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 59.35
+1.48 +2.56%
Volume: 6.86M
Dec. 1, 2021 11:52a
P/E Ratio
8.02
Dividend Yield
0.00%
Market Cap
$84.02 billion
Rev. per Employee
$790,226
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/zigman2/quotes/209966407/delayed
KR : S. Korea: KRX
120,000
+4,500 +3.90%
Volume: 851,165
Dec. 1, 2021 3:30p
P/E Ratio
17.24
Dividend Yield
1.00%
Market Cap
₩19821.72 billion
Rev. per Employee
₩1.59B
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/zigman2/quotes/210599714/realtime
US : S&P US
4,640.58
+73.58 +1.61%
Volume: 1.07B
Dec. 1, 2021 11:52a
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