LG Chem sees profit dip from General Motors recall

LG Chem said on Monday that it has recorded 10.61 trillion won in sales and 726.6 billion won in operating income during the third quarter.

This is an increase of 41.4% and a drop of 19.9%, respectively, from a year ago.

The drop in profit was caused by the cost of General Motors’ recent additional recall of Bolt EV, following incidents of the car catching fire.

LG Chem is the parent company of LG Energy Solution, which supplies batteries to the US automobile brand.

LG Energy Solution recorded 4.27 trillion won in sales and an operating loss of 372.8 billion won during the quarter due to the recall.