LG Elec cuts Q2 operating profit by 21% after GM Bolt EV recall

Reuters2021-08-10

SEOUL, Aug 10 (Reuters) - South Korea's LG Electronics Inc said on Tuesday it has revised down its second quarter operating profit by more than a fifth to reflect a provision for recall costs for General Motor Co's Bolt electric vehicles (EVs).

It said operating profit for the three months to end-June was now 878 billion won ($763.56 million) from a previously announced 1.1 trillion.

LG Electronics has supplied GM with battery modules made with LG Energy Solution's battery cells. In July, GM issued a second recall for nearly 69,000 Chevrolet Bolt EVs worldwide after reports of two fires and will replace defective battery modules as needed.

"We will continue to fully cooperate with the joint investigation conducted by GM, LG Electronics and LG Energy Solution and ensure smooth recall process," an official at LG Electronics told Reuters.

Last week, GM said its second-quarter results included $800 million in costs associated with the recall of Bolt EVs.

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