🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

GM extends EV Bolt production halt but plans to soon resume sales

Published 02/15/2022, 09:23 AM
Updated 02/15/2022, 10:42 AM
© Reuters. FILE PHOTO: A 2019 Chevrolet Bolt plug-in electric vehicle is displayed at the North American International Auto Show in Detroit, Michigan, U.S., January 15, 2019. REUTERS/Rebecca Cook/File Photo
GM
-

By David Shepardson

WASHINGTON (Reuters) -General Motors Co said Tuesday it is extending until early April a production halt to its Chevrolet Bolt electric vehicle following a recall, but it plans to soon resume retail sales.

The largest U.S. automaker in August widened a recall of the Bolt to more than 140,000 vehicles to replace battery modules after a series of fires in parked vehicles, and halted production and retail sales. GM said in August it had recalled all Bolt vehicles built since it launched production in 2017.

GM said it planned to resume production of the Bolt at its Orion Township, Michigan plant the week of April 4.

Separately, the National Highway Traffic Safety Administration (NHTSA) said it was closing an investigation opened in October 2020 into the Bolt fires "in view of the recall actions being taken by General Motors (NYSE:GM)."

NHTSA said it reviewed reports of 24 Bolt fires, while GM said it suspected 18 fires were linked to the battery issue.

GM said it remained committed to the Bolt and the halt to production "has enabled us to prioritize battery module replacements." It felt confident that it could "balance replacements along with new retail production".

The automaker said dealers receiving Bolt vehicles built after April 4 could sell them immediately. Recalled vehicles on dealer lots "will need to have their battery modules replaced before they can be made available for sale."

© Reuters. FILE PHOTO: A 2019 Chevrolet Bolt plug-in electric vehicle is displayed at the North American International Auto Show in Detroit, Michigan, U.S., January 15, 2019. REUTERS/Rebecca Cook/File Photo

Last month, GM said it is spending $4 billion to overhaul and expand the Orion plant, which will build different variants of the new Chevrolet Silverado and GMC Sierra electric pickups.

GM is also investing $2.6 billion with Korean partner LG Energy Solution in a new battery cell plant in Lansing that will supply Orion and other GM assembly plants when it opens in late 2024.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.