GM and LG’s ties tested by US$1bil recall

Trying times: An employee loads cars onto a trailer at the GM plant in Ohio. The company says it will replace battery modules after identifying manufacturing defects in some battery cells. ― Bloomberg

LONDON: In June 2017, months after General Motors Co (GM) beat Tesla Inc to market with an affordable, long-range electric vehicle (EV), it took out full-page newspaper ads touting how long its Chevrolet Bolt could travel between charges. The tagline: “Begin a long-distance relationship, now.”

Four years later, the long-distance relationship between GM and its battery partner, LG Energy Solution, is being tested like never before. At issue: who will pick up a roughly US$1bil (RM4.23bil) tab.