One in all Rivian’s former suppliers is at the moment suing the electrical car (EV) maker, claiming that it did not pay a reimbursement clause for cancellations on a contract for electrical motors.
Rivian final 12 months moved to deliver the manufacturing of its EV motors in-house, successfully cancelling a provide cope with Bosch after claiming the provider had “reckless failures” in delivering the variety of motors wanted. Now, Bosch is claiming that Rivian refused to pay $204 million in reimbursements for the cancelled plans, leaving the corporate with important stranded capital and a gap in income (by way of Automotive Information).
Bosch sued Rivian in July for breaching the contract, and the automaker instantly adopted up with a lawsuit of its personal in opposition to the provider. In its countersuit, Rivian blamed Bosch for manufacturing shortages and mentioned that the corporate’s failure to ship on the electrical motors deal had resulted in a 30,000-unit drop in deliberate manufacturing output.
As a part of the partnership, Bosch invested hundreds of thousands of {dollars} into tooling a manufacturing facility in Germany, the place it first produced the e-motors for Rivian. The corporate additionally constructed a 30,000-square-foot manufacturing line at its plant in South Carolina to assist produce the models.
“Given these important investments and that Rivian was an electrical car startup that had by no means manufactured automobiles earlier than, Rivian contracted to reimburse Bosch for all its unamortized prices ought to Rivian cancel this system early,” Bosch mentioned within the lawsuit.
Bosch was initially contracted to construct 200,000 motors for Rivian this 12 months, although the automaker formally cancelled the contract final September. Within the go well with, Bosch claims that Rivian had “secretly” been planning to interchange the availability with its personal Enduro e-motor system, regardless of having informed Bosch that the 2 could be utilized in tandem.
The corporate additionally says that Rivian’s manufacturing points have been associated to semiconductor shortages, reasonably than these of its e-motors.
“Whereas Rivian’s alternative to chop prices and develop a brand new product could also be comprehensible, Rivian can not merely ignore its contractual duties to reimburse Bosch,” the corporate provides.
Rivian and Bosch each declined to touch upon the authorized efforts in a press release to Automotive Information associates at Crain’s Detroit Enterprise.
Regardless of cancelling the order, Rivian has struggled with manufacturing of the motors in its personal proper, with the corporate earlier this month lowering its manufacturing steerage by 8,000 to 10,000 models to as a substitute intention for between 47,000 and 49,000 this 12 months. The automaker cited an more and more tough components scarcity that had been affecting its manufacturing of each its R1 and van models.
In August, Rivian alluded to the same components scarcity that prompted it to pause van manufacturing. It’s unclear if the 2 shortages are associated, as in each instances, Rivian didn’t reply to Teslarati’s requests for remark or disclose what parts had been having provide points.
What are your ideas? Let me know at [email protected], discover me on X at @zacharyvisconti, or ship us suggestions at [email protected].
