
Why Recessions Forge Great CEOs Who Think Beyond Cost-Cutting
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
October 13, 2021: -LG Electronics has agreed to reimburse General Motors up to $1.9 billion to recall Chevrolet Bolt EVs due to fire risks caused by faulty batteries provided by the South Korean supplier.
Problems with the Bolt, the company’s flagship mainstream EV, have led the automaker to recall every one of the electric cars since production, which started in 2016. Fixing the vehicles, which include completely replacing some batteries entirely, is expected to cost $2 billion, GM said Tuesday, and that’s up from a previous estimate of $1.8 billion.
The settlement between the companies is a significant win for the automaker, which missed Wall Street’s expectations in the second quarter due to setting aside costs for the recall.
As a result of the agreement, GM will recognize an estimated recovery in the third quarter that will offset $1.9 billion of $2.0 billion in charges associated with the recalls.
The manufacturing problems occurred at LG Battery Solution’s plants in South Korea and Michigan. According to GM, the “rare manufacturing defects” in the Bolt EVs are a torn anode tab and folded separator that, when present in the same battery cell, increase the risk of fire.
“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, GM vice president of global purchasing and supply chain, in a statement.
“Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules, and we expect to begin repairing customer vehicles this month.”
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
The leadership landscape is profoundly changing, influenced by technological advancements, shifting workforce expectations, and the need for adaptability in an unpredictable global environment.
In the fast-paced business world, corporate leaders often find themselves at the crossroads of risk and reward, where bold decisions …
April 23, 2025: The Canadian government has introduced new legislation to regulate the use of artificial intelligence in education and healthcare, focusing on accountability,
April 17, 2025: Prime Minister Justin Trudeau s government is under growing political pressure over its current immigration strategy.
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
April 15, 2025: Multiple wildfires burning across northern and central Alberta have triggered large-scale evacuations.
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you