GM Falls After Extending Bolt Production Halt By Two Weeks By Investing.com

0
19
© Reuters.

By Dhirendra Tripathi

Investing.com – General Motors stock (NYSE:) fell 2.3% on Wednesday as the carmaker extended its halt in the production of Chevrolet Bolt electric vehicles by two weeks.

The Orion Assembly plant in Michigan has been idled since August 23 and will be down through at least the end of this month.

GM was forced to suspend sales of the EVs, halt production at its Michigan factory and order a recall of all such cars made since 2016 due to the risk of fires from the high-voltage battery pack.

GM said on September 20 that battery production for the Bolt had resumed and that battery replacements were expected to begin in mid-October.

As per Tuesday’s announcement made by GM, battery-supplier LG Electronics (KS:) has agreed to cover almost the entire cost of the American carmaker’s recall of Bolt EVs.

GM said the pact with LG will help it offset $1.9 billion of $2 billion in charges associated with the recalls.

The battery modules were made with cells produced by LG Chemicals ‘ (KS:) fully-owned battery subsidiary LG Energy Solution.