Investing.com – General Motors stock (NYSE:GM) rose 0.6% on Tuesday after LG Electronics (KS:066570) agreed to cover almost the entire cost of the American carmaker’s recall of Bolt electric vehicles.
GM said the pact with LG will help it offset $1.9 billion of $2 billion in charges associated with the recalls.
LG Electronics supplied GM with battery modules made with cells produced by LG Chemicals ‘ (KS:051910) fully-owned battery subsidiary LG Energy Solution. The manufacturing problems occurred at LG Battery Solution’s plants in South Korea and Michigan.
In August, GM was forced to suspend sales of its Chevrolet Bolt EVs after it ordered another recall of the automobile due to the risk of fires from the high-voltage battery pack.
The issue made the automaker recall every electric car it produced since 2016.