Investing.com – General Motors stock (NYSE:GM) traded 2.4% lower in Monday’s premarket following the company’s decision to suspend sales of its Chevrolet Bolt electric vehicles after it ordered another recall of the automobile due to the risk of fires from the high-voltage battery pack.
The carmaker will take a $1 billion hit as a result of the fresh recall.
GM said it will replace defective battery modules in Bolt EVs and EUVs with new modules.
The carmaker said the recall covers all the remaining Bolt vehicles not covered in the July exercise. That installment had cost the company $800 million.
GM said it will seek reimbursement from battery supplier LG. The latest recall covers 73,000 units of model years 2019 through 2022.
According to Reuters, LG Electronics (KS:066570) has supplied GM with battery modules made with cells produced by LG Chemicals ' (KS:051910) fully-owned battery subsidiary LG Energy Solution.
LG Chemicals stock fell 11% in Seoul in response to the news.