Original title: never give up! General Motors CoPromise to continue to cooperate with LG battery
On Thursday, local time, General Motors Co CEO Mary Barra said the company would continue to work with its battery supplier, LG Energy Solutions (LGES), after a recent widespread recall that resulted in huge losses.
Because of the risk of battery fire, General Motors Co twice this year announced a recall of Bolt electric vehicles, a total of 142000 vehicles, the company may have to pay a high cost of $1.8 billion. General Motors Co had previously said he would lodge a claim with LGES.
There have been 10 Bolt electric vehicle fires so far, so both General Motors Co and the National Highway Traffic Safety Administration have called on Bolt owners to park their cars outdoors and away from their homes.
With the indefinite suspension of the sale of Bolt, General Motors Co's electrification process seems to have met with considerable resistance, but Barra remains confident that General Motors Co can ensure that he takes the lead in the electrification process in a variety of ways.
General Motors Co announced in January that he would launch 30 pure electric vehicles around the world in 2025 and stop production of all fuel vehicles by 2035, thus achieving his goal of achieving carbon neutrality by 2040.
General Motors Co, LGES and LG Electronics are still investigating the causes of battery defects, and some analysts believe that the risk of battery fire will bring uncertainty to the IPO process of LGES.
LGES was spun off from LG Chemical last year and was scheduled to enter the South Korean KOSPI market in October this year, but there are media reports that LGES is considering postponing the IPO plan, and GM's decision to recall Bolt electric vehicles is one of the important reasons. Analysts estimate that LG and LGES may bear 50 to 65 per cent of the cost, with LGES shouldering between $362 and $475 million.
It is worth mentioning that General Motors Co and LGES have a close cooperative relationship. In April this year, the two companies announced that they would build a second battery manufacturing plant in Spring Hill, Tennessee, while their first joint venture battery plant in the United States is under construction in Ohio.