By Sam Boughedda
Investing.com -- General Motors Company (NYSE:GM) 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.
GM shares are up 2.3% Tuesday.
The company explained that battery supplier LG Energy Solution is now producing enough to provide replacement modules for the recalls and to resume production.
GM had previously recalled more than 140,000 Bolts worldwide due to battery manufacturing defects that could cause the vehicles to catch fire. The faulty batteries were said to have had two flaws, forcing GM to recall Bolt models sold between 2016 and 2021.
The Detroit, Michigan-based company will start making hatchback and SUV versions of the vehicle, which should start reaching dealers shortly after. Meanwhile, unsold vehicles with dealers can be sold once the battery modules are replaced.
In October, LG agreed to reimburse GM $2 billion for the recall costs. In addition, the companies will continue the joint venturer to build batteries for electric vehicles.
In late January, GM said it will invest more than $7 billion in four Michigan manufacturing sites, including the construction of a new Ultium Cells battery cell plant with LG Energy in Lansing.