South Korea’s LG Chem shares dip nearly 10% on GM’s electric vehicle recall
SEOUL, Aug.23 (Reuters) – Shares of South Korea’s LG Chem Ltd (051910.KS) fell 9.5% on Monday after General Motors Co (GM.N) said on Friday it would recall around 73,000 vehicles electric Chevrolet Bolt (VE) at a cost of $ 1 billion to deal with fire hazards.
The Detroit-based company also said it would stop EV sales indefinitely due to the issue and seek a refund from the LG battery supplier. The latest recall concerns vehicles from model years 2019 to 2022. Learn more
Shares of LG Electronics Inc (066570.KS), which assembles cells made by LG Energy Solution (LGES), a wholly-owned subsidiary of LG Chem, in battery modules, fell 5.8% in morning trading.
The larger KOSPI market (.KS11) was trading up 0.2% at 12:33 GMT.
Earlier this month, LG Electronics cut second-quarter operating profit by more than a fifth to reflect the costs of GM’s recalls. Read more
South Korean automaker Hyundai Motor Co (005380.KS) announced earlier this year that it will spend $ 900 million to replace LG batteries in some 82,000 electric vehicles due to fire hazards.
Reporting by Heekyong Yang and Jihoon Lee; Editing by Tom Hogue and Kenneth Maxwell
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