Sam Boughedda

Investing.com – General Motors Company (NYSE) said it will begin producing Chevrolet Bolt electric vehicles again in early April after the factory was closed for eight months due to battery fire recalls.

Tuesday’s gains in GM stock are 2.3%

According to the company, battery supplier LG Energy Solution was able to produce enough batteries to supply replacement modules in time for recalls. They also explained how they can resume production.

GM has previously recalled over 140,000 Bolts globally due to defective battery manufacturing. This could have caused the cars to catch fire. According to GM, the faulty batteries had two defects that forced them to recall Bolt models made between 2016 and 2021.

Detroit-based Ford will begin making the SUV and hatchback versions of this vehicle. Dealers should be able to order them shortly thereafter. After the replacement of the batteries, any unsold vehicle with dealers may be offered for sale.

LG reached an agreement with GM to pay $2 billion in compensation for recall costs. The companies also agreed to continue working together in a joint venture to develop batteries for electric cars.

GM stated in late January it was investing more than $7B in Michigan’s four manufacturing facilities, and will also be building a new Ultium cell battery plant with LG Energy in Lansing.