- The new recall of roughly 73,000 vehicles announced Friday will cost the auto giant $1 billion, GM said. That brings the total Bolt recall costs to $1.8 billion, per numerous reports.
- GM's replacing defective battery modules over what it calls "rare" problems. The multiphase recall now covers every Bolt since the car's 2017 launch.
Why it matters: While lots of gas-powered cars are recalled, EV recalls are unwelcome at a time when automakers and the White House are looking to hasten the transition to cars with a plug.
- EV sales have been surging, but they're still a tiny fraction of the market and will need to massively expand to reach President Biden's goal of 50% of sales by 2030.
- GM is among several automakers to issue recalls over battery problems or other glitches. Others include Hyundai, Porsche and Ford (CNBC has a breakdown here).
What they're saying: "It’s an image hit, and not just for GM," Cox Automotive analyst Michelle Krebs tells Axios.
- Krebs notes that "GM is so committed to electric vehicles that I don't think it will do anything to derail that," and that she expects industry-wide EV sales to keep growing a lot.
- However, she adds that it's too soon to know whether industry recalls will have any drag on sales as EVs move beyond early adopters.
Doug Parks, a top GM executive, said in a statement alongside the new recall that "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," he said.
The big picture: The recall comes as GM is pouring $25 billion in electric and autonomous vehicles through 2025, with plans for well over two-dozen new models.
- One bright spot for GM is that its future models will use its Ultium battery propulsion system that's separate from the Bolt's batteries.
- Meanwhile, GM says its pursuing reimbursement from LG Chem over battery defects behind the Bolt recall, and shares of the Korean industrial conglomerate are sliding.
