After a disastrous rollout last decade, General Motors has had to cough up billions in lawsuit settlements and callbacks for their Chevy Bolt EV model.
Compensation for Chevy Bolt
If you own or lease a Chevy Bolt, the EV hatchback vehicle produced by General Motors and LG, you could be eligible to claim a $1400 compensation cheque.
$150 Million Fund
Both GM and South Korean electronic group LG have agreed to a $150 million class-action settlement, due to faulty batteries that have caused vehicle issues and even set some Bolt models on fire.
Michigan Lawsuit
The class action lawsuit was filed in Michigan by several Bolt owners back in 2020 and 2021, accusing the Michigan-based automaker and Korean company of selling them faulty products – specifically, faulty batteries.
Both Companies Settle
A document filed as part of the case on Thursday confirmed that a settlement had been reached, and the two corporations had agreed to establish a $150 million fund to compensate affected Chevy Bolt owners.
GM Public Statement Confirms
“GM, LG Energy Solution and LG Electronics have agreed to a settlement with plaintiffs to resolve class-action litigation related to the Bolt EV battery recall,” GM announced in a public statement on Friday.
Some May Qualify
“As a result, Bolt owners who received a battery replacement or who have installed the latest advanced diagnostic software may qualify for compensation,” the statement continued.
GM and LG 2015 Collaboration
Chevy Bolt models first entered the market in 2015. They collaborated with LG, which manufactured the electric batteries, as part of an early move into sustainable automotive manufacturing.
Alarm Bells Ring
But alarm bells began to ring in the coming years, as more and more Chevy Bolt owners began to notice issues with their cars – in the most extreme cases, some spontaneously burst into flames.
Multiple Complaints Filed
Owners began filing complaints with GM and the National Highway Traffic Safety Administration, before eventually taking things to the federal courts.
Battery Replacements and Diagnostic Software
GM first responded in 2020 by recalling Bolts due to the complaints and offering a battery replacement and diagnostic software to fix the issue.
Billions Spent on Recalls
The next year they spent billions of dollars in recalling thousands of affected models. They also placed a pause on all production and sales for the model around the world until the issue could be addressed.
140,000 Models Across the Continent
Eventually, by the end of 2021, the mass recall effort affected practically all of the 140,000 Chevy Bolt models sold across North America.
Eight Class-Action Lawsuits
Between 2020 and 2021 eight separate class-action lawsuits were filed against the company, across various US District Courts. All eight were then consolidated into the single case that was settled last week.
Big Win for Consumers
While the settlement and $150 million fund is a big win for Chevy Bolt owners, there are stipulations as to how the compensation will be dispersed.
$700 for Some
Bolt buyers who either received a battery replacement or sold their vehicles before the software diagnostic was made available, will receive $700 each in compensation.
$1400 for Others
Buyers who installed the software at a GM dealership prior to Dec. 31, 2023, could receive a maximum payout of $1,400.
Buyback Customers Excluded
Customers who received a full buyback from GM, which was a limited offer for some customers when the first round of Bolt’s were recalled, will be excluded from any claims in the settlement.
EV Push Continues
Though the rollout of the Chevy Bolt, GM’s second EV vehicle, couldn’t be described as a success, the Michigan-based manufacturer has no plans to stop pushing forward with sustainable EV models.
Several EV Models Released
Since the debut of its first EV model, the Spark EV, the company has also released an EV Hummer, Cadillac, and Chevrolet Silverado, in a bid to capitalize on the EV industry, which is projected to be worth $1,57 billion by 2030.
$35 Billion Invested
GM has already announced its intentions to end the production of all gas-powered vehicles in their factories by 2035 and expects to invest $35 billion in new EV models in the next year alone.
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The post – Chevy Bolt EV Owners Set to Receive $1400 in $150 Million Battery Settlement – first appeared on Liberty & Wealth.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
