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Sunwoda Settles Geely Unit’s Battery Suit, Warns of 500–800 Million Yuan Profit Hit

The deal shares replacement costs for suspect packs linked by regulators to Volvo EX30 recalls.

Overview

  • Sunwoda said the agreement with Geely’s Vremt resolves the December lawsuit over allegedly defective cells supplied from 2021 to 2023.
  • The company forecast a reduction of 500 million to 800 million yuan in 2025 net profit due to sharing battery replacement losses.
  • Vremt will withdraw its 2.31 billion yuan claim, with replacement costs to be allocated based on actual expenses.
  • Volvo announced EX30 recalls in Australia, the United States and Canada for overheating risks, and NHTSA said the affected cars carry Sunwoda batteries.
  • Geely declined to comment, and the number of its vehicles affected or any recall plans remains unclear.