LG Electronics Downgrades Profit Estimates Due to Bolt Electric Vehicle Reviews

On Tuesday, South Korean company LG Electronics Inc (KRX) announced a revision of its operating profit for the second quarter due to the recall of electric vehicles of the American General Motor Co, equipped with batteries manufactured by LG.

As a result of the revision, the estimated operating profit for April-June was reduced by 21% to 878 billion won ($ 763.56 billion) from the previously announced 1.1 trillion won.

In July, GM withdraws nearly 69,000 Chevrolet Bolts from the market following reports of two incidents of battery fires. In July, LG Chem, a battery supplier, said that incidents could be related to defects in battery module manufacturing.

According to the company, GM spent $ 800 million to recall Bolt electric vehicles in the second quarter.

LG Electronics shares fell 2.17% on Tuesday.