Tesla's original transmission maker sues for back payment

The drama surrounding the Tesla Roadster's transmission and the company's attempts to build a system that can transmit power from the motor to the wheels without breaking under the strain took another strange twist today, with the revelation the that first supplier Tesla contracted to design the part is suing the company for $5.6M. Magna Powertrain USA says Tesla hired it to develop a two-speed transmission in September 2006, and when things fell behind schedule, Tesla canceled the contract and walked away without paying. Saucy! Of course, problems with the proposed two-speed transmission are why Tesla plans to ship early production Roadsters with "temporary" one-speed units and swap them out later, but there's no word on where the two-speed versions are going to come from apart from Tesla saying "We need to have more control over our fate and manage the process in house." Sure, sure, just as long as we get one for "testing," okay?

[Sam Abuelsamid @ Apr 15th 2008 7:14PM]

Actually Magna was the second supplier in the sequence. They were brought in after the original XTrac gearbox failed to survive durability testing. Tesla is actually planning to stay with a one speed gearbox from now on. They are currently testing a motor with upgraded cooling capability that will allow it to produce more power and meet the original performance specs with a single speed unit.

[CarGuy @ Apr 15th 2008 7:38PM]

Tesla is working with BorgWarner to supply the transmission and associated technology.

[Rick @ Apr 15th 2008 7:35PM]

I don't know the full details, but, why would they expect to be paid for something that never arrived?

[David Clark @ Apr 15th 2008 7:54PM]

In the automotive industry, you get the LOI (letter of intent), which is your greenlight to proceed. It's always very tricky because sometimes this is respected as a contract, and sometimes it isn't.

But an OEM dumping a tier 1 supplier like that is an amateur mistake. Not even the idiots I supply do that.

[Ignatius @ Apr 15th 2008 8:24PM]

If anything, the company they contracted didn't do what they were contracted to do (work within a time frame) and they shouldn't be paid full cost.

However, dumping them and not paying... well, that's not the best idea in the world either.

[Andrew @ Apr 15th 2008 9:56PM]

Oh God, please don't let this end like the Tucker...

PLEASE don't let it end like the Tucker.

[apeguero @ Apr 15th 2008 10:33PM]

Keep it up Tesla and you'll allow the Volt to catch up.

[Reader @ Apr 15th 2008 10:37PM]

Need more of the story to pass judgment really. I just want to see this damn car on the road already.

[CarGuy @ Apr 16th 2008 12:16PM]

There's one sitting the Lobby of the BorgWarner Technical Center in Auburn Hills, Mi. Was driven in.

[jake @ Apr 15th 2008 11:12PM]

Like Sam mentioned, I think it's important to point out Tesla had already ditched the 2 speed completely and decided to go with a 1 speed with upgraded cooling on the motor to achieve the same 3.9 second performance. Only the first tens of cars will be using a "temporary" 1 speed that will can be swapped free of charge for the upgraded version.

Again there's too little details on this case so far to draw any conclusions.

[Ethan @ Apr 16th 2008 12:11AM]

Aw hell, just stick a Toyota 6-speed out of an Elise in there and call it a day.

[Amerist @ Apr 16th 2008 1:04PM]

That would be very nice... I have one of these in my car. :-)