Andrew Krupowicz was relieved last month to end the lease of his 2019 Chevrolet Bolt electric car, which had been recalled for the risk of battery fire. It was replaced by a new larger Bolt model that was not subject to security callback.
“I thought,‘ Okay, I’m out of the woods, ’” he said. But two weeks later, General Motors Co. he expanded his retirement to include every Bolt he has built, including his own vehicle. The hired Toronto accountant keeps the car but adds a networked fire alarm in case it turns on.
GM expanded the Bolt safety record for the second time this month, recovering the approximately 142,000 models built since it went on sale five years ago. The Detroit vehicle maker also stopped production of all new bolts. The security action of its lone American electric car will cost GM about $ 1.8 billion, or about $ 12,700 per car, among its highest costs.
Safety issues underscore the risks for traditional carmakers, as many turn strongly to electric vehicles. The high cost of energy-dense lithium-ion battery cells means that replacement costs can increase when defects occur. Ford Motor Co., Hyundai Motor Co. and other car companies have incurred high costs to fix a relatively small number of electric cars.
For GM, recent problems arise in trying to convince consumers and investors that they are ready to lead the automotive industry’s transition to electricity. Although the cars have been withdrawn, GM Energy and battery provider LG Energy Solution still have no solutions.