General Motors and South Korea’s LG Energy Solution, along with LG Electronics, have agreed to establish a $150 million fund to provide relief to Chevrolet Bolt EV owners affected by defective batteries, according to documents filed in a U.S. court on Thursday.
General Motors, which first launched the Chevrolet Bolt EV in 2015, utilized batteries supplied by LG entities under a business arrangement. In 2020, General Motors began issuing recalls following numerous complaints about fires in some vehicles.
“General Motors, 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,” General Motors said in an emailed statement to Reuters. “As a result, Bolt owners who received a battery replacement or who have installed the latest advanced diagnostic software may qualify for compensation,” the company added.
According to documents filed with the U.S. District Court for the Eastern District of Michigan, owners of recalled Bolt EVs who installed the final software remedy at a General Motors-authorized dealership before December 31, 2023, may receive up to $1,400. Those who sold or terminated the lease of their vehicle before the software remedy became available and those who already received a battery replacement will receive a minimum payment of $700.
Last year, General Motors ended production of the Bolt EV to make way for new electric vehicles. In 2021, the company announced a billion-dollar recall campaign to address the battery fire risks affecting thousands of Bolts, which led to a halt in Bolt production and sales for more than six months.
