Tesla Sues German Auto Parts Maker
January 19 2016 - 4:30PM
Dow Jones News
Tesla Motors Inc. filed a federal lawsuit against a German auto
parts maker for allegedly misrepresenting its ability to design the
signature "falcon wing" doors on its Model X electric sport-utility
vehicle, leading to a last-minute change to a new supplier that
caused delays.
The lawsuit, filed in the U.S. District Court of Northern
California, aims to stop the supplier, Hoerbiger Automotive Comfort
Systems LLC, from demanding more payment from Tesla after the
electric-vehicle maker cut ties with the supplier in May 2015.
Tesla is asking the court to state that it didn't breach any
contracts and to pay damages and attorney fees.
Tesla claims it paid Hoerbiger, which makes hydraulic lift
gates, to develop the vertically rising side doors on its Model X
after a competition with several other companies. But between
February 2014 and May 2015, the company couldn't produce a
prototype that passed Tesla's engineering standards.
The falcon wing doors are a signature feature of the Model X,
which has a base price of about $81,000.
According to the lawsuit, prototypes from Hoerbiger leaked oil
and sagged or produced excessive heat, causing them to stop
working. Hoerbiger couldn't be reached for a response Tuesday
afternoon at its offices in Auburn, Ala., and Schongau,
Germany.
"We were forced to file this lawsuit after Hoerbiger decided to
ignore their contracts with us and instead demanded a large sum of
money to which they are not entitled," a Tesla spokeswoman said in
an email. "We will vigorously prosecute this case."
According to the lawsuit, Hoerbiger is seeking additional
payments from Tesla for the work it says it was promised. Tesla
disputes that it owes the company anything more than the $3 million
it paid for prototype parts and engineering.
In May 2015, Tesla ditched that company's design and built an
electromechanical door system and hired a new supplier, according
to the lawsuit.
"Tesla incurred millions of dollars in damages, including, but
not limited to costs of re-tooling the entire vehicle in order to
support a different engineering solution," the lawsuit said. In
addition, Tesla had to pay the new supplier a premium to rush out a
workable solution.
Tesla delayed the Model X several times. It was first supposed
to be produced in late 2013. In late 2014, Tesla said the vehicle
would debut in the first half of 2015, but again it was delayed
until late in 2015, except a handful of vehicles that went to
company executives and early investors.
"Model X deliveries are in line with the very early stages of
our Model X production ramp as we prioritize quality above all
else," the spokeswoman said. "That ramp has been increasing
exponentially, with the daily production rate in the last week of
the year tracking to production of 238 Model X vehicles per
week."
Write to Mike Ramsey at michael.ramsey@wsj.com
(END) Dow Jones Newswires
January 19, 2016 16:15 ET (21:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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