GM has taken the unprecedented step of recalling all Chevy Bolt vehicles. The previous recall affected only pre-2020 models. In, I'm guessing, a "better safe than sorry" stance, all Bolts, including the new Bolt EUV (forteground above) are recalled to replace battery packs (made by LG). Some of the batteries were found to have, in rare circumstances, two manufacturing defects – a torn anode tab and folded separator – are present in the same battery cell, which increases the risk of fire. GM is working with LG to increase production of new batteries to complete the recall which is expected to cost more than $1 billion. Until the battery packs are replaced, GM suggests that you:
- Set their vehicle to a 90 percent state of charge limitation using Target Charge Level mode. Instructions on how to do this are available on chevy.com/boltevrecall. If customers are unable to successfully make these changes, or do not feel comfortable making these changes, GM is asking them to visit their dealer to have these adjustments completed.
- Charge their vehicle more frequently and avoid depleting their battery below approximately 70 miles (113 kilometers) of remaining range, where possible.
- Park their vehicles outside immediately after charging and should not leave their vehicles charging indoors overnight.
This has been an ongoing saga that could tarnish the reputation and acceptance of EVs in general. Folks that are overly concerned about EV fire risk should remember that their ICE vehicle have a tank full of flammable liquids (aka Molotov Cocktail if you will). Click "read more" below to view the media releases. Customers can visit www.chevy.com/boltevrecall or contact the Chevrolet EV Concierge 1-833-EVCHEVY (available Monday through Friday from 8 a.m.–midnight ET; Saturday and Sunday from noon–9 p.m. ET) or contact their preferred Chevrolet EV dealer. Chevy has halted Bolt production due to the chip shortage. Are they waiting for new batteries so that new vehicles don't need to be recalled? With introductions of new EVs from Cadillacs to GMC, I guess GMs new Ultium batteries can't get here soon enough. (Below is a pic of GM's latest Ultium powered platform as a point of reference.)
Source: GM - Media releases (2), pic
Media Release:
General Motors to Recall Additional Bolt EVs
- Supplier manufacturing defect may lead to battery fire in rare circumstances
- GM will pursue reimbursement from supplier
DETROIT – General Motors is voluntarily expanding the current Chevrolet Bolt EV recall to cover the remaining 2019 and all 2020-2022 model year vehicles, including the Bolt EUV. In rare circumstances, the batteries supplied to GM for these vehicles may have two manufacturing defects – a torn anode tab and folded separator – present in the same battery cell, which increases the risk of fire. Out of an abundance of caution, GM will replace defective battery modules in Chevrolet Bolt EVs and EUVs with new modules, with an expected additional cost of approximately $1 billion.
“Our focus on safety and doing the right thing for our customers guides every decision we make at GM,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain. “As leaders in the transition to an all-electric future, we know that building and maintaining trust is critical. GM customers can be confident in our commitment to taking the steps to ensure the safety of these vehicles.”
After further investigation into the manufacturing processes at LG and disassembling battery packs, GM discovered manufacturing defects in certain battery cells produced at LG manufacturing facilities beyond the Ochang, Korea, plant. GM and LG are working to rectify the cause of these defects. In the meantime, GM is pursuing commitments from LG for reimbursement of this field action.
This new recall population includes:
- 9,335 (6,989 in the U.S. and 1,212 in Canada) – 2019 model year Bolt EVs that were not included in the previous recall
- 63,683 (52,403 in the U.S. and 9,019 in Canada) – 2020–2022 model year Chevrolet Bolt EVs and EUVs
To provide customers peace of mind, batteries with these new modules will come with an 8-year/100,000-mile limited warranty (or 8-year/160,000 km limited warranty in Canada).
GM is working aggressively with LG to increase production as soon as possible. GM will notify customers when replacement parts are ready.
Until customers in the new recall population receive replacement modules, they should:
1. Set their vehicle to a 90 percent state of charge limitation using Target Charge Level mode. Instructions on how to do this are available on chevy.com/boltevrecall. If customers are unable to successfully make these changes, or do not feel comfortable making these changes, GM is asking them to visit their dealer to have these adjustments completed.
2. Charge their vehicle more frequently and avoid depleting their battery below approximately 70 miles (113 kilometers) of remaining range, where possible.
3. Park their vehicles outside immediately after charging and should not leave their vehicles charging indoors overnight.
Customers can visit www.chevy.com/boltevrecall or contact the Chevrolet EV Concierge 1-833-EVCHEVY (available Monday through Friday from 8 a.m.–midnight ET; Saturday and Sunday from noon–9 p.m. ET) or contact their preferred Chevrolet EV dealer.
Canadian customers can visit the Chevrolet Owner’s Centre or contact their preferred dealer.
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.
Cautionary Note on Forward-Looking Statements: This letter and related comments by management may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgement about possible future events and are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgements are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
Media Release:
GM Reports Strong Second-Quarter 2021 Results
Second-quarter 2021 results overview
- Revenue of $34.2 billion
- Net income of $2.8 billion, and EBIT-adjusted of $4.1 billion, including warranty recall costs of $(1.3) billion, of which $(0.8) billion was related to the Chevrolet Bolt EV
- Net income margin of 8.3 percent, and EBIT-adjusted margin of 12.0 percent
- Automotive operating cash flow of $4.0 billion and adjusted automotive free cash flow of $2.5 billion
- EPS-diluted of $1.90, and EPS-diluted-adjusted of $1.97*
- GM North America EBIT-adjusted of $2.9 billion, and EBIT-adjusted margin of 10.4 percent
- GM International EBIT-adjusted of $0.0 billion, including China Equity Income of $0.3 billion
- GM Financial EBT-adjusted of $1.6 billion
Second-quarter 2020 results overview
- Revenue of $16.8 billion
- Net income (loss) of $(0.8) billion, and EBIT (loss)-adjusted of $(0.5) billion
- Net income (loss) margin of (4.5) percent, and EBIT (loss)-adjusted margin of (3.2) percent
- Automotive operating cash flow of $(8.0) billion, and adjusted automotive free cash flow of $(9.0) billion
- EPS-diluted of $(0.56), and EPS-diluted-adjusted of $(0.50)**
- GM North America EBIT (loss)-adjusted of $(0.1) billion, and EBIT (loss)-adjusted margin of
(0.9) percent - GM International EBIT (loss)-adjusted of $(0.3) billion, including China Equity Income of $0.2 billion
- GM Financial EBT-adjusted of $0.2 billion
2021 guidance
- Full-year EPS-diluted of between $5.12 and $6.12, and EPS-diluted-adjusted of between $5.40 and $6.40
- Full-year net income of between $7.7 billion and $9.2 billion, and EBIT-adjusted of between $11.5 billion and $13.5 billion
See below for reconciliations of non-GAAP measures to their most directly comparable GAAP measures or visit the GM Investor Relations website for complete details.
Conference call for investors and analysts
Mary Barra and Chief Financial Officer Paul Jacobson will host a conference call for investors and analysts at 10 a.m. ET today to discuss these results and the company’s growth strategy. Introductory remarks will be followed by a question-and-answer session.
Those who wish to listen to the call may dial in using the following numbers:
- United States: 1-888-808-8618
- International: +1-949-484-0645
- Name of call: GM Earnings Call
*EPS-diluted and EPS-diluted-adjusted include a $0.12 impact from mark-to-market gains on equity method investments.
**EPS-diluted and EPS-diluted-adjusted includes a $0.08 impact from mark-to-market gains on equity method investments.
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.
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