April 27, 2024

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[THE INVESTOR] General Motors is considering levying penalties on LG, its key partner for the upcoming Chevrolet Bolt EV, for revealing sensitive business information to the public in violation of their non-disclosure agreements, Chosun Biz reported on Nov. 9.

LG companies, including LG Electronics and LG Chem, supply 11 core parts ranging from battery cells and packs to motors, inverters and infotainment systems for the Bolt, GM’s first full-electric vehicle that will be launched at the end of this year. 

The report said complaints are mounting at the US auto giant about LG revealing too many details about the car publicly despite its key role in the overall development.

“The Bolt is a crucial new launch for GM’s future. The related information is highly sensitive,” a GM official was quoted as saying. “We are reviewing details of our NDA contracts.”

Last month, GM reprimanded LG Chem, the battery-making unit, for projecting about 30,000 unit sales for the Bolt next year during a conference call following its third-quarter earnings report. It is rare for a carmaker to reveal sales target for a new car as it is directly linked to its sales and marketing strategy.

GM was also said to be upset when Volvo Cars CEO Hakan Samuelsson visited LG Electronics’ research center in Incheon early this month where the development for Bolt parts was underway. LG explained the CEO didn’t visit the production line but GM complained about the unexpected visit by the head of a rival carmaker.

By Lee Ji-yoon (jylee@heraldcorp.com)