The German auto parts giant Bosch has filed a lawsuit against the crisis-stricken electric vehicle manufacturer Rivian, seeking billions. Bosch claims Rivian backed out of an agreement without making the necessary payments.
The dispute centers on a cooperation agreement made in 2019, which has now led to legal action. Bosch is demanding payment for the motors they already delivered, claiming Rivian owes $204 million.
Rivian, which has established itself as a leading manufacturer of electric vehicles, argues that it withdrew from the deal because Bosch failed to deliver electric motors of the promised quality.
This was reported by Crain's Detroit Business.
After encountering issues with the motors supplied by Bosch, Rivian decided to begin its own production of electric motors to ensure better quality.
Consequently, Rivian has also taken legal action against Bosch.
Bosch, known for its high-quality automotive products, asserts that it made significant investments in the collaboration. The company claims it upgraded a factory in Germany and built a brand-new facility in the United States specifically to manufacture motors for Rivian’s electric vehicles. However, according to Bosch, they were only able to deliver 101,000 electric motors before Rivian withdrew from the agreement.
Both sides now accuse each other of breaching their respective obligations. Bosch alleges that Rivian secretly developed its own Enduro electric motor to cut costs, while Rivian counters that Bosch’s motors were of such poor quality that they did not meet the terms of the 2019 agreement.
During a visit to one of Bosch’s factories, Rivian representatives reportedly observed that the motors were being manufactured by teenagers, and that quality control was inadequate.
Both companies now face a lengthy court battle to prove their respective claims. A trial date has not yet been scheduled.
