Chinese-made electric vehicles supplier failure to keep its end of a contract and owes Ryder over $3 million. In November 2018, Ryder announced that it had made a deal to acquire Chinese-based electric vehicles from Chanje. However, the company didn’t mention that an earlier partnership with Chanje was indicating signs of failure. Recently the relationship between Ryder and Chanje is bad after Ryder filed suit in the US Southern District Court Florida against Chanje, claiming that the latter is under-delivering electric cars and not compensating for these failures for several years.
Reliable sources claim that the lawsuit details indicate that the two firms’ problems date back before the 2018 partnership. However, it wasn’t until recently that people learned of the rocky relationship.
Chanje is America’s based representative of the country’s FDG Electric Vehicles LTD. The FDG is a Chinese-based firm whose main objective was to build vehicles that Chanje would sell. Ryder put Chanje’s first purchasing order for 125 vehicles in June 2017. Its pricing was set at $35000, and Ryder quickly delivered their end of the contract sending the Chanje $4.375 million.
Back then, in an interview, Ryder described the cars claiming that they are all-electric large delivery vans, medium-sized trucks with a maximum capacity of 6,000 pounds, and a 580 cubic feet cargo with zero-emission. However, by the end of the year, Ryder only had 22 of these cars, with three more coming in later. Adding fuel to the fire, Ryder erroneously submitted the full price of 22 cars forgetting that the company had already paid the $4.375 million, excluding the $10000 per vehicle for the commercial cars.
Since March 2018, Ryder has held meetings and sent requests for Chanje to reimburse the overpayment, but Chanje claims that the company doesn’t have the money. Also, the EV supplier never delivered the remaining cars in the 125-vehicle batch. Following the supplier’s failure in the 2017 purchase batch, Ryder terminated the order despite the remaining one-hundred cars.
However, despite the issues, Ryder signed another deal with Chanje in November 2018 in partnership with FedEx. Earlier in June 2018, Ryder ordered 500 EVs from Chanje despite their bad relationship. All these details came to light in the lawsuit against the Chinese-made EVs supplier.
Mid-2019, Ryder again announced plans with Chanje even though the case claims that their relationship was worse than before. Previously, Ryder gave a promissory note of $770,000, and the borrower was Chanje, but up to now, only $500,000 is paid. Many people questioned why the companies seemed to venture into more deals together despite the bad relationship after the lawsuit. However, Ryder is yet to respond to these questions. Time will tell the real situation and how both companies will deal with it.https://testmeasurement.com.au/