Rivian is in the middle of a legal battle with Bosch over a contract involving motors for Rivian’s electric vehicles, with both companies accusing each other of failing to uphold their end of the deal.
The lawsuits sheds light on the significant production challenges Rivian has faced since launching its EVs in 2021.
Bosch’s Claim
The legal battle began after Rivian abruptly ended its contract with Bosch, which had been supplying quad-motor systems for Rivian’s R1 models. Bosch had invested heavily in manufacturing facilities in Germany and South Carolina to meet Rivian’s needs, expecting to produce 200,000 motors in 2024, according to a summary of the cases by Crains Detroit Business.
However, Rivian canceled the contract in September 2023 as it moved to its own in-house motor, called the Enduro, which the automaker says was developed to lower costs and simplify production.
Bosch claims that Rivian owes it $204 million in reimbursements for the investments made to meet the automaker’s demands. Bosch also accuses Rivian of leaving its production facilities idle and failing to uphold its financial obligations, despite having agreed to cover unamortized costs if the contract ended prematurely.
Rivian’s Counterclaim
In response, Rivian filed a countersuit, arguing that Bosch’s inability to deliver motors on time was a major cause of the production issues that have plagued the company since it started production in 2021. According to Rivian, Bosch’s delays caused a significant bottleneck in 2022, resulting in 30,000 fewer vehicles produced than anticipated.
Rivian further alleges that Bosch provided substandard manufacturing services, leading to quality control issues that hindered its ability to meet production targets. Rivian also claims that Bosch overcommitted to multiple EV manufacturers, leading to delays and supply issues across the board.
According to Rivian, Bosch’s failure to meet agreed-upon motor deliveries was one of the largest threats to its success at a critical stage of production ramp-up.
These cases are far from over. Both companies are set to continue their legal battle well into 2025, with the next court date scheduled for early February.
