GM, LG Paying $150M to Chevy Bolt Owners Due to Battery Issue

General Motors and its partner, LG Energy Solution, agreed to a $150 million settlement with Chevrolet Bolt owners impacted by defective batteries for the vehicles. The payments range from $700 to $1,400 depending upon certain factors.

GM and partner LG Solution will pay Chevy Bolt owners $150 million due to problems with the vehicle’s recalled batteries.

The settlement comes on the heels of the automaker confirming plans to convert part of its Fairfax, Kansas plant to produce the next iteration of the Bolt, which GM halted production of last year, ostensibly to make way for the new model.

The Bolt launched for the 2017 model year using batteries produced by LG Solution. The company began recalling the vehicles in 2020 due complaints about fires. The company ultimately had to stop production for nearly six months as it searched for the cause and solution to the problem.

The issue was resolved with a software update conducted at dealerships. More than 100,000 Bolts were recalled as part of the action.

Paying out

The original Bolt was introduced in 2016 with the second generation arriving a few years later.

“GM, 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,” GM 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.”

Owners of the recalled Bolt EVs who installed the final software remedy at a GM-authorized dealership before Dec. 31, 2023 may receive up to $1,400, according to documents filed with Michigan eastern district court.

Once approved by the judge, more than 22,500 owners will get $1,400 while an additional 80,000 will be eligible for $700. Many of the latter are owners who leased the vehicles, and subsequently terminated their lease before the software update was available or owners who received battery replacements.

More Chevy Bolt Stories

• GM Wrapping Production of Malibu to Shift to Bolt EV
• Next-Gen Chevy Bolt Will Only Come in EUV Form
• UAW Reveals GM Building a Cheaper Chevy Bolt

New Bolt is coming

GM is bringing the Bolt back, albeit with an entirely new battery system from its Ultium venture with LG. The older model had some limitations, especially charging speed where it could only handle 50 kW — dramatically slower than most of its competitors.

GM is shifting production of Chevy Bolt from the Orion Assembly plant to its Fairfax Assembly Plant in Kansas.

The automaker plans to shut down production on its third-best-selling vehicle to make way for the all-new Chevrolet Bolt EV in November. The Malibu is a big seller due to its popularity with fleet owners.

The company plans to stop production of the Cadillac XT4 SUV at the Fairfax Assembly Plant as well to make the necessary adjustment to the lines and facility to produce the new EV as well as the gas-powered XT4.

The previous Bolt ran on an outdated architecture, but the new version will use the new Ultium EV platform that the rest of the company’s EVs, such as the Chevrolet Blazer EV and more. Not only that, it will be less expensive, coming in around $27,000. It will only be available as the larger EUV model.