General Motors announced a voluntary expansion of the current Chevrolet Bolt EV recall, related to the risk of battery fire, to cover the remaining 2019 and all 2020-2022 model year vehicles, including the all-new Bolt EUV.
In other words, all Chevrolet Bolt EV (2017-2022) and all Chevrolet Bolt EUV (2022) are now recalled and will get new battery modules. As we understand, all battery modules inside the packs will be replaced with new ones.
2022 Chevrolet Bolt EV
2022 Chevrolet Bolt EUV
GM explains that a supplier manufacturing defect may lead to a battery fire in rare circumstances (as far as we know, a double-digit number of such cases were reported so far):
“In rare circumstances, the batteries supplied to GM for these vehicles may have two manufacturing defects – a torn anode tab and folded separator – present in the same battery cell, which increases the risk of fire. Out of an abundance of caution, GM will replace defective battery modules in Chevrolet Bolt EVs and EUVs with new modules, with an expected additional cost of approximately $1 billion.”
The battery cells for the battery modules were supplied by LG Chem’s LG Energy Solution and according to the latest press release, the manufacturing problem goes “beyond” the Ochang, Korea, plant:
“After further investigation into the manufacturing processes at LG and disassembling battery packs, GM discovered manufacturing defects in certain battery cells produced at LG manufacturing facilities beyond the Ochang, Korea, plant. GM and LG are working to rectify the cause of these defects. In the meantime, GM is pursuing commitments from LG for reimbursement of this field action.”
General Motors estimates that the expansion of the recall will cost approximately $1 billion, on top of $800 million allocated previously, which means $1.8 billion total.
That’s a huge cost and GM announced that it will pursue reimbursement from LG Energy Solution.
The scale of GM’s recall is much bigger than in the case of Hyundai. Previously, the company reported that the new batteries will be installed in about 69,000 2017-2019 Bolt EVs, including nearly 51,000 sold in the U.S.
The expansion includes 73,018 additional cars (59,392 in the U.S., 10,231 in Canada and 3,395 in other markets), which brings us to a total of about 142,000 (including about 100,000 in the U.S.).
This new recall population includes:
- 9,335 (6,989 in the U.S. and 1,212 in Canada) – 2019 model year Bolt EVs that were not included in the previous recall
- 63,683 (52,403 in the U.S. and 9,019 in Canada) – 2020–2022 model year Chevrolet Bolt EVs and EUVs
We probably never saw anything even close to those numbers in the EV market, as far as battery recalls are concerned.
GM says that it will notify customers when replacement parts will be ready and that the batteries with new modules will be covered with a full 8-year/100,000-mile limited warranty (or 8-year/160,000 km limited warranty in Canada).
Until then, customers should not charge beyond 90% State of Charge (SOC) or discharge below approximately 70 miles (113 km ) of remaining range and should keep the vehicles outside.
“To provide customers peace of mind, batteries with these new modules will come with an 8-year/100,000-mile limited warranty (or 8-year/160,000 km limited warranty in Canada).
GM is working aggressively with LG to increase production as soon as possible. GM will notify customers when replacement parts are ready.
Until customers in the new recall population receive replacement modules, they should:
1. Set their vehicle to a 90 percent state of charge limitation using Target Charge Level mode. Instructions on how to do this are available on chevy.com/boltevrecall. If customers are unable to successfully make these changes, or do not feel comfortable making these changes, GM is asking them to visit their dealer to have these adjustments completed.
2. Charge their vehicle more frequently and avoid depleting their battery below approximately 70 miles (113 kilometers) of remaining range, where possible.
3. Park their vehicles outside immediately after charging and should not leave their vehicles charging indoors overnight.
Customers can visit www.chevy.com/boltevrecall or contact the Chevrolet EV Concierge 1-833-EVCHEVY (available Monday through Friday from 8 a.m.–midnight ET; Saturday and Sunday from noon–9 p.m. ET) or contact their preferred Chevrolet EV dealer.
Canadian customers can visit the Chevrolet Owner’s Centre or contact their preferred dealer.
Meanwhile, the production of the Chevrolet Bolt EV and Bolt EUV is halted/or soon to be halted according to media reports.
If the total number of vehicles (about 142,000) and the total estimated cost ($1.8 billion) are correct, the average cost per vehicle is now at about $12,675 (or about $190 per kWh).
It’s a lot because it probably includes not only the battery modules inside the pack, but all the costs related to research, logistics, service (opening the pack, installation, closing the pack) and additional parts that have to be replaced.
$1.8 billion is basically enough to build a new battery gigafactory. Instead of that, the recall will force LG Chem to produce and install about 9.2-9.4 GWh of batteries again. It’s not good news for the already constrained battery market, as some 142,000 other new EVs will have to wait for their batteries.
It might take months until LG Chem’s LG Energy Solution will be able to produce new cells to complete the recall.
It’s a really unfortunate outcome for all, Chevrolet Bolt EV/EUV owners, GM, LG, and the rest of the market.
Consumer debt tops $2.36 trillion in third quarter, up 7.3 per cent from last year
Equifax Canada says an increase in borrowers helped push total consumer debt to $2.36 trillion in the third quarter for a 7.3 per cent rise from last year, even as mortgage volumes decline.
It says average non-mortgage debt rose to $21,183 for the highest level since the second quarter of 2020, with early signs of strain starting to show in auto loans and credit cards.
Overall non-mortgage debt came in at $599.9 billion for a 5.3 per cent climb from last year, and up 1.9 per cent from the third quarter of 2019, as the number of borrowers rose by 3.1 per cent.
Rebecca Oakes, Equifax Canada’s head of advanced analytics, says the rising debt stems from a combination of growth from immigration, pent-up spending, as well as increased borrowing as consumers feel the strain of higher living costs.
Credit card spending in the quarter was up 17.3 per cent from last year to an all-time high for the time period.
Average spending put on credit cards was almost $2,447, a 21.8 per cent jump from the third quarter of 2019.
There’s been an increase in credit card spending and new cards issued across all consumer segments, including the sub-prime segments, said Oakes in a statement.
She said there are some signs that borrowers are starting to have trouble covering the bills, with average payment rates for those who carry a balance down from a year ago, she said.
“Consumers have been making strong payments, but we are starting to see a shift in payment behaviour especially for credit card revolvers — those who carry a balance on their card and don’t pay it off in full each month.”
Delinquencies on auto loans have also started to trend up, especially those opened since late 2021, she said.
The overall rate of more than 90 day delinquencies for non-mortgage debt was 0.93 per cent, up from 0.87 last year, though insolvencies are still well below pre-pandemic levels.
New mortgage volume dropped 22.7 per cent in the quarter compared with last year and by 14.9 per cent compared with the third quarter of 2019. First-time home buyers are paying over $500 more for almost the same loan amounts as first-time buyers last year.
Overall insolvency rates are up from a year ago but from a relatively low starting point, and there are some areas of concern including a rise in consumer proposals by seniors, said Oakes.
“The true impact of interest rate hikes could be visible by the end of 2023.”
This report by The Canadian Press was first published Dec. 6, 2022.
Trudeau, Ford mark opening of Canada’s first full-scale electric vehicle plant
The Canadian Press
Published Monday, December 5, 2022 5:06AM EST
Last Updated Monday, December 5, 2022 1:17PM EST
Prime Minister Justin Trudeau and Ontario Premier Doug Ford are celebrating the opening today of Canada’s first full-scale electric vehicle manufacturing plant.
Trudeau says electric delivery vans have started rolling off the line today at the General Motors CAMI production plant in Ingersoll, Ont., which has been retooled to build the company’s BrightDrop all-electric vehicle brand.
The prime minister was joined by Ford and the province’s Economic Development Minister Vic Fedeli to mark the milestone.
The provincial and federal governments each invested $259 million toward GM’s $2-billion plan to transform its Ingersoll plant and overhaul its Oshawa, Ont., plant to make it EV-ready.
The federal government says the Ingersoll plant is expected to manufacture 50,000 electric vehicles by 2025.
Canada intends to bar the sale of new internal-combustion engines in passenger vehicles by 2035.
This report by The Canadian Press was first published Dec. 5, 2022.
Food prices in Canada: Families to pay $1,065 more in 2023
Canadians won’t escape food inflation any time soon.
Food prices in Canada will continue to escalate in the new year, with grocery costs forecast to rise up to seven per cent in 2023, new research predicts.
For a family of four, the total annual grocery bill is expected to be $16,288 — $1,065 more than it was this year, the 13th edition of Canada’s Food Price Report released Monday said.
A single woman in her 40s — the average age in Canada — will pay about $3,740 for groceries next year while a single man the same age would pay $4,168, according to the report and Statistics Canada.
Food inflation is set to remain stubbornly high in the first half of 2023 before it starts to ease, said Sylvain Charlebois, lead author of the report and Dalhousie University professor of food distribution and policy.
“When you look at the current food inflation cycle we’re in right now, we’re probably in the seventh-inning stretch,” he said in an interview. “The first part of 2023 will remain challenging … but we’re starting to see the end of this.”
Multiple factors could influence food prices next year, including climate change, geopolitical conflicts, rising energy costs and the lingering effects of COVID-19, the report said.
Currency fluctuations could also play a role in food prices. A weaker Canadian dollar could make importing goods like lettuce more expensive, for example.
Earlier this year the loonie was worth more than 80 cents US, but it then dropped to a low of 72.17 cents US in October amid a strengthening U.S. dollar. It has hovered near the 74 cent mark in recent weeks, ending Friday at 74.25 cents US.
“The produce section is going to be the wild card,” Charlebois said. “Currency is one of the key things that could throw things off early in the winter and that’s why produce is the highest category.”
Vegetables could see the biggest price spikes, with estimates pegging cost increases will rise as high as eight per cent, the report said.
In addition to currency risks, much of the produce sold in Canada comes from the United States, which has been struggling with extremely dry conditions.
“The western U.S., particularly California, has seen strong El Nino weather patterns and droughts and bacterial contaminations, and that’s impacted our fruit and vegetable suppliers and prices,” said Simon Somogyi, campus lead at the University of Guelph and professor at the Gordon S. Lang School of Business and Economics.
“The drought is making the production of lettuce more expensive,” he said. “It’s reducing the crop size but it’s also causing bacterial contamination, which is lessening the supply in the marketplace.”
Prices in other key food categories like meat, dairy and bakery are predicted to soar up to seven per cent, the researchers found.
The Canadian Dairy Commission has approved a farm gate milk price increase of about 2.2 per cent, or just under two cents per litre, for Feb. 1, 2023.
“The increase for February is reasonable but it comes after the unprecedented increases in 2022, which are continuing to work their way through the supply chain,” Charlebois said of the two price hikes of nearly 11 per cent combined in 2022.
Meanwhile, seafood is expected to increase up to six per cent, while fruit could increase up to five per cent, the report said.
Restaurant costs are expected to increase four to six per cent, less than supermarket prices, the report said.
Rising prices will push food security and affordability even further out of reach of Canadians a year after food bank use reached a record high, the report said.
The increasing reliance on food banks is expected to continue, with 20 per cent of Canadians reporting they will likely turn to community organizations in 2023 for help feeding their families, a survey included in the report found.
Use of weekly flyers, coupons, bulk buying and food rescuing apps also ticked up this year and is expected to continue growing in 2023, the report said.
“We’re in the era now of the smart shopper,” said Somogyi, also the Arrell Chair in the Business of Food.
“For certain generations, it’s the first time that they’ve had to make a list, not impulse buy, read the weekly flyers, use coupons, buy in volume and freeze what they don’t use.”
Last year’s report predicted food prices would increase five to seven per cent in 2022 — the biggest jump ever predicted by the annual food price report.
Food costs actually far exceeded that forecast. Grocery prices were up 11 per cent in October compared with a year before while overall food costs were up 10.1 per cent, according to Statistics Canada.
“We were called alarmists,” Charlebois said of the prediction that food prices could rise seven per cent in 2022. Critics called the report an “exaggeration,” he said.
“You’re always one crisis away from throwing everything out the window,” Charlebois said. “We didn’t predict the war in Ukraine, and that really affected markets.”
This report by The Canadian Press was first published Dec. 5, 2022.
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