These costs are staggering — and exponentially higher than the average price tag of an auto recall over the last 10 years, which was only about $500 per vehicle, according to Mike Held, director of the automotive and industrial practice at consulting firm AlixPartners.
And they should serve as serious warnings to the industry.
“Battery safety and durability will be increasingly important if auto companies want to avoid some of the large battery-recall costs that have befallen the consumer electronics industry,” Held said.
The GM recall was prompted by at least nine fires tied to a malfunction in the battery, all of which occurred when the cars were shut off. GM is still figuring out how to address the problem, but replacing either the battery cells or the entire battery is likely one option. The automaker has urged drivers to not park their cars in garages, or next to homes or other structures.
Previous GM recalls
Though the Bolt’s per-car recall price tag is hefty, this is by no means the most expensive total cost of a recall. Because there are so many more gasoline-powered cars on the road, recalling those vehicles can be hugely expensive.
The challenge for the Bolt and other electronic vehicles is that the large batteries are by far the most expensive component — so replacing the battery is comparable to replacing the entire engine in a traditional car.
GM says the problem with the Bolt batteries was caused by two rare manufacturing errors in model years 2017 to 2019, and the more recent models did not undergo the same battery manufacturing process and are not included in the recall. Its new generation of EVs will use its Ultium battery and will not be subject to the same fire risk.
Read More: GM’s Chevy Bolt recall comes with a huge price tag