EV startup Canoo is facing two new lawsuits from suppliers involved in providing drivetrains for its electric vehicles, following a major reorganization that included the departure of its chief technology officer. Canoo also parted ways with senior director of advanced vehicle engineering Christoph Kuttner, the last remaining co-founder from the original team of nine who launched the startup in 2017.
Kuttner, along with the other co-founders, split from Faraday Future in 2017 to start Evelozcity, which later became Canoo. Over time, the co-founders gradually exited the company, including during its transition to a publicly traded entity after merging with a special purpose acquisition company in 2020.
The lawsuits, filed in September in Michigan’s Oakland County Circuit Court, come as Canoo shifts its operations from California to Texas and Oklahoma while exploring potential customers in the U.K. and Middle East. With limited financial resources, Canoo reported just over $19 million in total cash, only $4.5 million of which was unrestricted as of June 30, 2024.
The lawsuits involve Jing-Jin Electric North America (JJE) and Dana Limited. JJE, contracted to supply electric motors for Canoo’s vehicles, claims the company owes them over $1.4 million. Despite entering a repayment plan in November 2023, Canoo allegedly stopped making payments in June 2024, after initially paying $851,013 and an additional $120,649. JJE has since halted work and says Canoo ceased communications.
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