General Motors Also Recalls 68,000 Electric Vehicles for Fire - Automakers Share Same Battery Manufacturer
South Korean automaker Hyundai Motor Company is facing a class-action lawsuit from about 200 people seeking compensation for battery fires occurring in their electric vehicles (EV).
The plaintiffs are seeking compensation for the reduced value of the vehicles and are also requesting the complete replacement of their batteries. Currently, Hyundai provides customers with a 10 year/100,000-mile warranty and includes the large lithium-ion battery that fuels the electric motor. The company as of this time will not share the cost of the batteries.
With a rash of fires in the Hyundai EV Konas, the company has recalled more than 74,000 vehicles. The Hyundai EV Konas are compact, sport utility vehicles based at an MSRP of about $37,000.
Only last week, General Motors also had to recall 68,000 EV Chevy Bolts after it was reported there were five fires with two injuries as a result.
Beyond the commonality of both companies recalling electric vehicles within one week, there is another strong connection between the two automakers. Both General Motors and Hyundai Motor share the same battery manufacturer, LG Chem Ltd, the largest Korean chemical company and 11th largest in the world.
Analysts are predicting that the impacted battery issues may result in Hyundai Motor and LG Chem Ltd. being liable for about $540 million if the batteries must all be replaced. However, Hyundai Motor claims they expect to avoid this huge settlement since they believe a software correction will not only detect the fire hazard but also prevent all internal issues before fires erupt in the Konas.
The plaintiffs have indicated they will not accept a software fix but instead are asking for completely new batteries.
As for the General Motors battery issues, there has not yet been a class-action lawsuit filed and the company stated, “The affected vehicles’ cell packs have the potential to smoke and ignite internally, which could spread to the rest of the vehicle and cause a structure fire if parked inside a garage or near a house.” Owners of Chevy Bolts are advised to keep their EV vehicles parked outside.
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