General Motors reported a big boost in its net income for the second quarter of 2023 to more than $2.5 billion despite agreeing to pay almost $800 million connected to the Chevrolet Bolt EV and Bolt EUV recall.
The $792 million charge was related to extra steps the company said it took to resolve the issue for consumers. It also involved “new agreements” with LG Electronics and LG Energy Solution. The cost of the recall program, related to a potential fire risk in the LG-supplied batteries, was pegged at $1.9 billion in 2021, but with GM now absorbing part of that cost, according to Chief Financial Officer Paul Jacobson.
GM CEO Mary Barra, in a letter to shareholders, explained the company’s reasoning.
Read Article