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GM extending Bolt production halt for two additional weeks

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WASHINGTON, Oct 13 (Reuters) – General Motors (GM.N) mentioned Wednesday it’s going to prolong a production halt of its electrical automobile Chevrolet Bolt for two additional weeks as it really works to speed up production of latest battery modules and prioritize recall repairs.

The largest U.S. automaker in August widened its recall of the Bolt to greater than 140,000 automobiles to exchange battery modules and to deal with fireplace dangers. GM’s Orion Assembly plant in Michigan, which builds the Bolt, has been idled since Aug. 23 and will probably be down by means of not less than the top of October.

GM additionally mentioned it’s going to minimize an additional three weeks of production of the Chevrolet Equinox at its Ramos Assembly plant in Mexico because of the international scarcity of semiconductors.

GM mentioned Tuesday its battery accomplice, South Korea’s LG Electronics Inc (066570.KS), agreed to reimburse it for the $2 billion estimated prices and bills related to the Bolt recall.

The U.S. automaker didn’t say how a lot LG would pay however mentioned it’s going to acknowledge an estimated restoration within the third-quarter earnings that can offset $1.9 billion of the full fees related to the recall.

It follows bulletins earlier within the day by GM’s battery suppliers LG Chem Ltd (051910.KS) and LG Electronics that the two South Korean corporations will shoulder a mixed $1.2 billion of prices related to the recall.

GM mentioned on Sept. 20 that battery production for the Bolt had resumed and that battery replacements have been anticipated to start in mid-October.

GM mentioned LG has carried out new manufacturing processes and has labored with GM to “review and enhance its quality assurance programs to provide confidence in its batteries moving forward.”

Within about 60 days, GM will launch a brand new “advanced diagnostic software package that will increase the available battery charging parameters over existing guidance,” it mentioned.

Reporting by David Shepardson, Editing by Nick Zieminski

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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

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

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