GM's deal with LG over Bolt recall costs removes headwinds, RBC says - NewsBreak

General Motors Co.'s agreement with LG Electronics to cover expenses with the Chevrolet Bolt recall removes a headwind for the stock, analysts at RBC Capital said in a note Tuesday. GM earlier Tuesday said it reached a deal with LG for the costs with the recall, which was due to manufacturing defects in battery modules supplied by LG. As a result, GM will recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2 billion in charges associated with the recalls, the company said. "We had (about $1 billion) headwind in our 3Q21 estimate, but...