General Motors (GM) and South Korea’s LG Energy Solution and LG Electronics have agreed to establish a $150 million fund to compensate Chevrolet Bolt EV owners affected by defective batteries. This settlement was revealed in documents filed in a U.S. court on May 16, 2024.
The Chevrolet Bolt EV, launched by GM in 2015 using batteries supplied by LG entities, faced issues in 2020, leading to a recall due to numerous complaints about battery fires. The recalls caused significant disruptions, including a halt in production and sales of the Bolt for over six months in 2021.
GM confirmed the settlement in an email to Reuters, stating, “GM, LG Energy Solution, and LG Electronics have agreed to a settlement with plaintiffs to resolve class action litigation related to the Bolt EV battery recall.” The settlement compensates Bolt owners who received a battery replacement or installed the latest advanced diagnostic software.
Owners who installed the final software remedy at a GM-authorized dealership before December 31, 2023, may receive up to $1,400. Those who sold or terminated their vehicle’s lease before the software remedy became available, as well as those who already received a battery replacement, will receive a minimum payment of $700.
GM announced a billion-dollar recall campaign in 2021 to address the battery fire risks, which affected thousands of Bolt EVs. This recall effort significantly impacted GM’s operations, forcing the company to cease Bolt production and sales for an extended period. Last year, GM ended production of the Bolt EV altogether to focus on new electric vehicle models.
