S Korea’s LG Chem shares dive nearly 10per cent on GM electric vehicle recall
SEOUL :Shares of South Korea’s LG Chem Ltd slid as much as 9.5per cent on Monday after General Motors Co on Friday said it would recall about 73,000 Chevrolet Bolt electric vehicles (EVs) at a cost of US$1 billion to address fire risks.
The Detroit company also said it would indefinitely halt sales of the EVs due to the issue and will seek reimbursement from battery supplier LG. The latest recall covers vehicles from model years 2019 through 2022.
Shares of LG Electronics Inc, which assembles cells manufactured by LG Chem’s wholly-owned battery subsidiary LG Energy Solution (LGES) into battery modules, dropped as much as 5.8per cent in morning trade.
The broader market KOSPI was trading up 0.2per cent as of 0033 GMT.
Earlier this month, LG Electronics cut its second-quarter operating profit by more than a fifth to reflect costs for the GM recalls.
South Korean automaker Hyundai Motor Co earlier this year said it would spend US$900…
