The cost of that fire to General Motors 0
It has been estimated that the cost of the lab explosion earlier this month may result in General Motors having to pay out $5 million in order to fix it.
The power of the explosion
The explosion occurred in General Motors Technical Centre at their battery testing facility, located in Warren. Some sources claim that only one employee needed medical treatment at a hospital following the explosion, other sources claim two employees were sent to hospital. Four others were said to be evaluated by medical experts too after the explosion. The explosion was so powerful that steel doors and windows were completely blown away. A police report confirmed the fire “ripped through an adjacent area causing massive damage, blowing open steel doors and blowing out windows.” The actual fire was created through gases originating from an experimental battery pack which was stored within an enclosed room, according to General Motors themselves. The incident was likened to a natural gas explosion.
A breakdown of the estimated figure
The Manager of the facility, Krishon Davis confirmed in a statement that the figure may indeed reach the $5 million figure. $3 million of that is from the damage whereas the contents loss adds up to $2 million and the property loss accounts for $1 million. This figure is only an estimate at present. An investigation from the fire department could result in further increases.
Greg Martin, a spokesman of General Motors said “Our first priority is the safety of our employees and we continue to investigate the incident. At this time, we do not have a specific dollar amount on the extent of damage, nor can we comment on the immediate estimates placed in reports filed on the same day of the incident.”
Insurance for costs over $5 million
Some claim that General Motors are insured. It is estimated that any damage beyond $5 million is covered by XL Capitol Insurance.
Statement from the Warren Fire Department
The Warren fire department are continuing their investigation. A spokesman said “We’re trying to find which ignition source, but the damage to the lab is extensive, so we may never know which piece of equipment with 100 percent certainty but we’re working toward it. We’re getting full cooperation from the GM people.”
Implications for the Volt
The Chevrolet Volt has been struggling to pick up sales as expected. Will the company suffer with this latest setback?