Canoo Faces Supplier Lawsuits & Leadership Exodus Amid Financial Struggles
Electric vehicle startup Canoo is navigating turbulent waters as it faces two new supplier lawsuits and the departure of its last remaining co-founder. These challenges come just weeks after the company initiated a major reorganization, including the exit of its Chief Technology Officer.
Leadership Shakeup: Last Co-Founder Departs
Christoph Kuttner, Senior Director of Advanced Vehicle Engineering and the final remaining co-founder from Canoo’s original team of nine, has left the company. Kuttner was part of the group that split from Faraday Future in late 2017 to establish Evelozcity, which later became Canoo.
This departure marks the complete turnover of Canoo’s founding team since its transition from a private startup to a publicly traded company via SPAC merger in late 2020. Neither Kuttner nor Canoo provided immediate comments regarding this development.
Financial & Operational Challenges
The lawsuits emerge as Canoo undergoes significant operational changes:
- Relocating focus from California to Texas and Oklahoma
- Pursuing international customers in the U.K. and Middle East
- Operating with limited financial resources (\(19M total cash as of June 2024, only \)4.5M unrestricted)
Supplier Lawsuits: Breakdown of Allegations
Two Michigan-based suppliers have filed lawsuits against Canoo in Oakland County Circuit Court:
1. Jing-Jin Electric North America (JJE)
- Role: Designed and built electric motors for Canoo vehicles
- Allegations:
- $1.4M unpaid balance as of August 2023
- Partial repayment plan established in November 2023 ($851,013 paid)
- $446,692.77 allegedly still owed
- Work suspended in June 2024 after Canoo stopped responding
2. Dana Limited
- Role: Co-designed and developed drive assemblies
- Allegations:
- Agreement included cost recovery for production delays
- Two unpaid $4.3M payments for delayed production
- Multiple notices sent between late 2023 and 2024
Broader Context
These legal and leadership challenges come at a critical juncture for Canoo as it attempts to:
- Streamline operations through reorganization
- Expand its market presence internationally
- Maintain production timelines despite financial constraints
The outcomes of these lawsuits could significantly impact Canoo’s ability to execute its business strategy and maintain supplier relationships moving forward.
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