The German sub-supplier Bosch has sued crisis-hit Rivian for a larger sum of billions. The car brand slipped out of an agreement without paying, say the Germans.
Rivian has been sued by the German car parts manufacturer Bosch in a dispute over a large order for electric motors.
It all boils down to a cooperation agreement that was entered into in 2019, but which has now ended up in court.
Here, Bosch demands payment for the motors they have already delivered. Bosch claims that Rivian has failed to pay the 204 million dollars (about 1.4 billion kroner, ed.) that the American electric car company owes.
However, Rivian, which has distinguished itself as one of the most prominent manufacturers of electric motor vehicles, believes that they pulled out of the agreement because Bosch could not deliver electric motors of the promised quality.
This is written by Crain's Detroit Business .
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After experiencing problems with the supplied motors, Rivian decided to start its own production of electric motors to ensure better quality. Rivian has therefore also taken legal action against Bosch.
Bosch, known for their high-quality products in the automotive industry, on the other hand, has claimed that they invested significantly in the collaboration.
Among other things, they upgraded a factory in Germany and built a brand new factory in the USA with the aim of producing the engines for Rivian's electric cars. But the Germans managed to deliver only 101,000 electric motors, because Rivian withdrew from the agreement. So according to Bosch.
The dispute now stands where both parties accuse each other of breaching their respective parts of the agreement. Bosch believes that Rivian secretly developed its own Enduro electric motor to save money.
While Rivian claims that the engines from Bosch are of such poor quality that they do not live up to the 2019 agreement. During a visit to one of Bosch's factories, Rivian representatives are said to have observed that the engines were manufactured by teenagers and that quality control was inadequate .
Both companies are now facing a lengthy court case where they must prove their respective claims. The trial has not yet been scheduled.
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