General Motors Faces a Devastating Setback With Electric Vehicles
Sound the alarm! General Motors is stopping the production of all-electric vehicles. The GMC Hummer, Chevy Bolt EV and EUV, electric Chevy Silverado, and more now face delays. General Motors may have to set back their plans by months.
General Motors pauses all-electric vehicle production
Everything electric for General Motors just came to a screeching halt. This could disrupt its plan to stop selling gas-powered vehicles by 2035. Stopping production also impacts the launch of the upcoming GMC Hummer EV.
But General Motors doesn’t have much choice as they recall for every Chevy Bolt ever made keeps turning into a larger mess. GM will replace about 142,000 new batteries in existing models, including the new Bolt EUV introduced for 2022.
The batteries keep catching on fire, and this issue may cost General Motors over $1.8 billion. But the batteries were supplied by LG Energy Solutions. So, LG may pick up some of the tab.
Will LG help General Motors with the Chevy Bolt recall?
LG and General Motors are starting a dual investigation to determine the cause of the battery fires in the Chevy Bolt. But it’s unclear if LG will take any of the responsibility, but both companies have a lot riding on this.
The batteries in Chevy Bolt models that have been catching on fire are linked to LG factories. LG will need to take the time to discover the manufacturing defect and correct the issue to ensure defect-free batteries before mass production resumes. General Motors believes that the batteries suffer from two defects, including a torn anode tab and folded separator.
LG is currently supplying General Motors with batteries for new electric vehicles, such as the GMC Hummer EV. GMC also has another electric truck waiting in the wings, and the Chevy Silverado EV should arrive soon.
This is where the pressure really starts to mount. General Motors needs to roll out its new electric vehicles without any hiccups. But the Coronavirus (COVID-19) outbreak and global semiconductor chip shortage already disrupted production.
When will production resume?
Production for the Chevy Bolt is expected to resume in the middle of September, so the clock is ticking. This seems like a short amount of time for LG and General Motors to identify and correct the battery issues. Also, if an argument over who should pay occurs, production could be set back even further.
The 2022 GMC Hummer EV will be produced at the General Motors Hamtramck Assembly plant in Detroit, Michigan. Availability is expected to begin in the fall, which is right around the corner. How does LG know if the batteries for the Hummer will catch on fire?
General Motors has invested $35 billion in electric and autonomous vehicles through 2025. The Chevy Silverado EV and another option are coming out soon. But will they arrive in time to face the Ford F-150 Lightning or Tesla Cybertruck?
We’re worried that the electric pickle could get worse for General Motors. They have a lot of money on the line as production for each electric vehicle has been stopped. We hope they don’t go bankrupt again.
RELATED: How to Choose Between the Chevy Bolt EV or Nissan Leaf
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