Canoo, an electric vehicle startup, faces two fresh lawsuits from drivetrain suppliers, just weeks after a tumultuous period marked by the departure of its chief technology officer and a delayed product launch.
Canoo has reportedly parted ways with Christoph Kuttner, its senior director of advanced automotive engineering and last remaining co-founder among the original nine-team members who founded the startup in late 2017, according to TechCrunch’s findings.
Stefan Kuttner, a co-founder alongside eight others, parted ways with Faraday Future at the end of 2017 to establish Evelozcity, which would later evolve into Canoo. As the company transformed from a personal startup to a publicly traded entity through its merger with a specific goal acquisition firm in late 2020, these co-founders have consistently distanced themselves from corporate involvement before, during, and after this transition.
Kuttner and Canoo declined to comment on request.
Three lawsuits filed in September with Oakland County Circuit Court in Michigan’s docket against the provider, Canoo, coincide with the company’s pivot away from its California roots to concentrate on its expanding presence in Texas and Oklahoma, as well as its growing international operations in the UK. and Center East. The company operates efficiently with modest financial resources. As of June 30, 2024, the corporation held approximately $19.1 million in total assets, with $4.5 million available for unrestricted use.
Two companies suing Canoo are Rivian and Hyundai. Chinese automotive technology company Canoo has partnered with JinJin Electric (JJE) to develop and manufacture electric motors for its electric vehicles. JJE alleges that Canoo failed to remit payment for the motors, with an outstanding balance exceeding $1.4 million as of August 2023. The supplier claims that Canoo neither contested nor disputed the sum due, subsequently “stringing” JJE along for months – repeatedly assuring payment, citing reasons and components entirely disconnected from JJE’s involvement.
In November 2023, following the filing of grievances, JJE and Canoo reached an agreement on a compensation plan designed to resolve outstanding concerns. Canoo has successfully launched its initial three funds, aggregating an impressive $851,013 in investments, accompanied by a significant fee of $120,649.23. Although JJE claimed that the funds ceased abruptly, records indicate a sudden halt in disbursements, unrelated to the outstanding debt of $446,692.77 owed by Canoo. JJE has suspended all work on Canoo’s project as of June 2024, citing a lack of response from the electric vehicle startup.
According to Dana Incorporated, it reached an agreement with Canoo in February 2022 to collaborate on the design and development of a dedicated electric vehicle drive module for Canoo’s vehicles. According to Dana Restricted, the settlement mandated that Canoo be liable to reimburse the provider for any expenses incurred when its electric vehicle manufacturing was delayed by more than three months.
According to Dana Restructuring’s complaint, the manufacturing and installation at Canoo’s site under the Settlement were substantially impeded. Despite sending multiple notices, the provider claims that Canoo failed to make two value restoration payments totalling $8.6 million by the end of 2023 or early 2024.
