GM's Expensive Bolt Electric Vehicle Recall and Compensation Plan
General Motors (GM) is expanding its Chevrolet Bolt electric vehicle recall, with the additional cost potentially reaching another billion US dollars. This decision comes after an earlier recall of around 70,000 Bolt vehicles due to a potential fire risk. The latest recall includes 9,335 Bolt EV models from 2019 and 63,683 from 2020 to 2022.
Following the recall, GM is seeking compensation from LG Electronics, the South Korean battery manufacturer accused of providing faulty batteries that may have caused the vehicle fires. The company did not immediately respond to a request for comment.
Notably, there is ongoing litigation involving GM and LG regarding faulty batteries that allegedly posed a fire risk. According to the lawsuit, GM and LG failed to warn consumers or assume financial responsibility for the defective batteries despite knowing about the issue.
Compensation and Settlement Details
Despite not admitting any wrongdoing, GM and LG agreed to a $150 million class action settlement to resolve the allegations and compensate affected vehicle owners. Here are the key details behind this settlement:
- Improved Battery Safety: The settlement includes provisions for improved battery safety, such as advanced diagnostic software designed to detect battery anomalies.
- Eligibility and Compensation: The settlement applies to individuals who purchased or leased a 2017-2022 Chevrolet Bolt EV that was built and shipped to a dealer on or before August 19, 2021. Eligible class members can receive cash payments based on the remedy their vehicle received or was eligible to receive:
- $1,400 for those whose vehicles received a software remedy.
- $700 for those whose vehicles were eligible for a battery replacement.
- Up to $2,100 if additional battery-related repairs were made.
- Submission of Claim Form: To receive compensation, eligible owners and lessees must submit a valid claim form by February 24, 2025. Required documentation includes proof of ownership or lease, such as vehicle registration, title, lease contract, and a driver’s license or other government-issued photo ID.
Moving Forward
The $150 million settlement aims to provide financial relief to affected vehicle owners and restore trust in GM’s electric vehicle lineup by addressing the battery safety issues and implementing preventive measures. It is essential for GM to prioritize safety and prepare for the potential costs of addressing any further issues that may arise.
As the automotive industry moves towards electrification, companies like GM must ensure that safety concerns are addressed promptly and effectively to maintain consumer trust and confidence.
