WASHINGTON, Sept.16 (Reuters) – General Motors Co (GM.N) on Thursday announced it would extend the shutdown of a Michigan assembly plant until mid-October following a new recall of its Chevrolet Bolt electric vehicles for battery problems after 12 reported fires.
America’s largest automaker has said the extended shutdown of production at its Orion assembly plant will continue until at least October 15. GM also said it was cutting output at six other North American assembly plants due to the current shortage of semiconductor chips.
GM has said it will not resume production or sales of Bolt until it is satisfied that the use of the recall will resolve the fire risk problem. He said Thursday he reported 12 fires and three injuries.
GM shares were largely unchanged at the end of the session.
In August, GM extended its recall of the Bolt to more than 140,000 vehicles to replace battery modules, at a cost now estimated at $ 1.8 billion. The automaker said it would seek a refund from the LG battery supplier (003550.KS).
It is not known how long it will take GM to obtain replacement battery modules for the recalled vehicles and whether it will have diagnostic software that will allow it to certify that certain modules do not need to be. replaced.
GM said the additional three-week production shutdown at its Bolt plant comes as it continues “to work with our supplier to update manufacturing processes.”
Earlier this month, GM was forced to temporarily halt production at most North American assembly plants due to chip shortages.
The new production cuts include a Lansing, Michigan plant that builds the Chevrolet Traverse and the Buick Enclave.
GM is also reducing production of SUVs like the Chevrolet Equinox, the Blazer and the GMC Terrain at its plants in Mexico and Canada. It will also make further production cuts at factories in Michigan and Kansas that make Chevrolet Camaro and Malibu cars.
Separately, Chrysler’s parent company, Stellantis NV (STLA.MI), announced Thursday that it will extend production shutdowns at its assembly plants in Belvidere, Illinois and Windsor, Ontario by a week until the 1st. October due to the shortage of chips.
The Commerce Department said Wednesday that it is planning a White House meeting on September 23 with automakers and others “to discuss the current global chip shortage, the impact of the Delta variant on chains global semiconductor sourcing and industry progress towards improving transparency. “
Reporting by David Shepardson; Editing by Dan Grebler and Aurora Ellis
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