General Motors Co. late Friday said it would spend $1 billion to expand the recall of Chevy Bolt EVs to cover newer vehicles because of two potential battery defects that can cause fires.
The latest recall covers Chevy Bolts made in 2019 that were not part of the recall earlier this year and all model years 2020 through 2022, including the Bolt compact SUV, GM GM, -0.57% said.
GM last month recalled Chevy Bolts made between 2017 and 2019, asking owners to keep the cars charged at a certain level because of the potential for battery fires. The auto maker in November recalled nearly 70,000 Chevy Bolts and advised owners to get a software update to monitor the batteries and signal for any problems.
GM said Friday that the potentially defective batteries in the recall expansion were supplied by LG. The voluntary recall is being done out of an “an abundance of caution” and GM will replace defective battery modules with new ones, at an expected cost of $1 billion, it said.
GM said that it discovered the manufacturing defects in some of the cells after “further investigation” into the manufacturing processes at LG and disassembling battery packs. GM indicated that it may pass on the $1 billion bill to LG.
“GM is pursuing commitments from LG for reimbursement of this field action,” it said.
The batteries swapped will come with an 8-year or 100,000-mile warranty for “peace of mind” for owners, GM said.
GM is also telling owners involved in the latest recall to keep their cars charged at a certain level, to avoid depleting the battery, and to park the vehicles outside after charging, among other instructions.
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Shares of GM fell more than 2% in the extended session with losses accelerating after the news. The stock ended the regular trading day down 0.6%.
The stock has gained 17% so far this year, compared with an 18% advance for the S&P 500 index. SPX, +0.81%