LG Chem Ltd (051910.KS) shares slid nearly 10% on Monday after General Motors Co said it would recall an extra 73,000 Chevrolet Bolt cars that use the South Korean firm's batteries, months after a similar recall by Hyundai Motor Co (005380.KS).
GM on Friday expanded its recall of Bolt electric vehicles due to fire risk from what it called battery manufacturing defects, saying the recall would cost $1 billion and that it would seek reimbursement from LG.The U.S. automaker said the recall covers vehicles beginning model year 2019 and that it would indefinitely halt Bolt sales. LG Chem said it was working to ensure a smooth recall.
LG Chem, which is preparing an initial public offering for battery unit LG Energy Solution , lost $5 billion in market value with its stock on track for its biggest intraday percentage loss since March 2020. "The market expected that LGES would launch its IPO in September, but with GM's expanded recall, LGES IPO is likely to be delayed for a month or two, because the company needs to reflect the recall cost before finalising the IPO paperwork," said Samsung Securities analyst Cho Hyun-ryul.
GM initially recalled 69,000 Bolt cars in July. Its expanded recall comes about a week after a fire involving a Volkswagen AG
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
GM extends recall to cover all Chevy Bolts due to fire riskGeneral Motors is recalling all Chevrolet Bolt electric vehicles sold worldwide to fix a battery problem that could cause fires.
Consulte Mais informação »
The 6 Must-Know Korean Fashion Brands to Have On Your RadarInfluencer Laura Jung and YouTube creator Celine Kim share their favorite It-brands from South Korea.
Consulte Mais informação »
The 6 Must-Know Korean Fashion Brands to Have On Your RadarInfluencer Laura Jung and YouTube creator Celine Kim share their favorite It-brands from South Korea.
Consulte Mais informação »
The 6 Must-Know Korean Fashion Brands to Have On Your RadarInfluencer Laura Jung and YouTube creator Celine Kim share their favorite It-brands from South Korea.
Consulte Mais informação »
Opinion: Ignore Elon Musk’s dancing distraction and face the dangers ahead for TeslaOPINION: 'Investigations into automated-driving systems and the statements made about it by the electric-car company and its chief executive deserve more attention than their latest fanciful technology aspirations and timelines.'
Consulte Mais informação »
How Trump-hating California ended up with a slate of recall candidates who supported TrumpWhere Gov. Gavin Newsom's leading recall election opponents fall in the Republican political spectrum.
Consulte Mais informação »