“Jamais deux sans trois” (never two without three), as the French would say. After recalling its Chevrolet Bolt EV twice over the past year, General Motors Company (GM) is forced to call back its electric vehicles a third time due to potential fire risk. This time, however, the cost will be even greater for GM. A total of 73,000 vehicles will be recalled from the 2019-2022 model years, which translates to a $1b loss for the company. These recalls will be added to the 69,000 EV’s previously recalled, bringing GM’s loss to a grand total of $1.8b.
GM’s shares plummeted 3% on the NYSE after the news broke. As if that weren’t enough, the company expects a production loss of 100,000 vehicles in the second part of 2021 due to a series of supply chain concerns (you guessed it, we’re talking chip shortages). Overall, GM shares have fallen more than 17% in the month of August.
why it matters
GM’s recall of all EV Bolt models casts a pretty dark shadow on the company’s objective of exclusively selling EV’s by 2035. This comes on top of President Biden’s request for 50% of the cars sold in the US to be electric by 2030.