--- title: "Rivian and Bosch Are Taking Each Other to Court After EV Motor Deal Collapses" description: "Bosch says Rivian is trying to get out of paying $204 million that it's owed; Rivian says Bosch cost it 30,000 vehicle deliveries in 2022." date: "2024-10-18" modified: "2024-10-18" authors: - name: "Nico DeMattia" job_title: "Contributing Writer" link: "https://www.thedrive.com/authors/nico-demattia" url: "https://www.thedrive.com/news/rivian-and-bosch-are-taking-each-other-to-court-after-ev-motor-deal-collapses" categories: - "Car Tech" - "Electric Vehicles" - "News" - "News by Brand" - "Rivian News" tags: - "Electric Vehicle" - "R1S" - "Rivian" - "suv/crossover" --- # Rivian and Bosch Are Taking Each Other to Court After EV Motor Deal Collapses ![A green Rivian R1S driven in a city.]() *\Rivian\* Things are getting heated between [Rivian]() and Bosch. The companies are suing each other after Rivian canceled its contract with Bosch to build electric motors for its vehicles, per *[Crain's Detroit Business]()*. Bosch claims that Rivian breached its contract by backing out of the deal without paying the $204 million that it owed to the German parts supplier. Meanwhile, Rivian alleges that it only backed out of the deal because Bosch failed to deliver product and meet agreed-upon quality thresholds. And they're both bringing their receipts to court. The companies reached a deal in 2019, where Bosch was to supply Rivian with the components necessary for its quad-motor powertrain. Bosch spent millions retooling a plant in Germany and building a 30,000-square-foot factory in South Carolina to manufacture the motors. According to the company, that contract safeguarded it in the event Rivian went bust, by forcing Rivian to pay Bosch for its investments and unamortized costs if the deal was canceled. Then, in 2023, the very much still-functioning Rivian allegedly moved to cancel. Now, Bosch is accusing Rivian of canceling because it had been secretly developing its own electric motor and drive unit, called "Enduro," during their deal. According to Bosch, Rivian planned to replace its motors with Enduro power units moving forward, as it was more cost-effective for Rivian. At the time, it's said Rivian was losing $30,000 to $40,000 per vehicle and needed to reduce manufacturing expenses. “While Rivian’s choice to cut costs and develop a new product may be understandable, Rivian cannot simply ignore its contractual duties to reimburse Bosch,” the suit said, per *Auto News*. ![]() *www.thedrive.com* And then there's Rivian's side of the story. Rivian says that Bosch failed to supply enough motors, and that many of those that it did deliver were of poor quality, leading to manufacturing delays and financial losses. Rivian's countersuit claims that Bosch intentionally under-invested in the development of its electric motors, while entering into contracts with several upstart EV companies, betting that most would go bust before the end of the contract. "Bosch made a calculated gamble to overpromise to multiple start-up electric vehicle companies on the theory that at least some of them would soon fail,” Rivian's lawsuit said. By the end of 2022, Bosch had reportedly delivered 101,000 motors, less than half the contractual requirement at the time. Rivian's suit also cites a letter sent by the brand's director of procurement to Bosch, which apparently stated that Bosch's inadequate supply was “the #1 threat to our organization’s success.” Rivian argues that Bosch's incompetence resulted in production shortages that kept the EV maker from shipping some 30,000 vehicles that year. According to Bosch's lawsuit, it tried to send engineers to Rivian for assembly line assistance. But Rivian claims that it sent engineers to Bosch's plant, where they observed subpar quality control and product handled by unqualified personnel, including teenagers. There's a lot of finger-pointing right now between Rivian and Bosch. The courts will ultimately sift through all of it and make a decision but, either way, the result is going to look bad for somebody. *Got tips? Send 'em to tips@thedrive.com* ## Author Nico is a writer and reviewer from New Jersey who probably thinks he’s a lot funnier than he actually is. His love of cars began when he was just a kid playing Gran Turismo 3, grinding out enough race wins with a Mazda Miata to save up for an in-game RUF 911. That passion for small, lightweight sports cars drove his desire to learn more about the industry, get his hands on as many cars as he could, and bring those experiences to life on the page. He cut his teeth writing about BMWs, Volkswagens, and Audis, mostly, and has owned far too many of each. He’s on his fourth 3 Series sedan, but all of his old, cheap German cars have forced him to learn more about car maintenance than his mechanical capability can handle. Too many late nights have been spent scrambling to get a car running by morning so he could get to work. For some reason, he never seems to learn that old Bimmers probably aren’t the best daily drivers. But he loves more than just old German cars. He’ll gladly drive and discuss anything with four (or even three) wheels. Cars aren’t his only passions, though. Nico is also a big nerd and loves movies, video games, comic books, and cares far too much about the New York Giants. So don’t be surprised if you see football references or dumb, obscure movie quotes in any of his car reviews. ### Author social links [Instagram]() [LinkedIn]()