Electronics firm claims delays in key contract caused by customer
Printed circuit specialist Trackwise Designs has claimed that delays in a key contract are the fault of its client.
The delay in the contract has had an impact on the firm and its financial situation.
The Gloucestershire firm signed a three-year deal with UK EV OEM – a manufacturer of electric vehicles which could be worth up to £5m.
The deal is for the supply of Trackwise’s flexible printed circuit boards for use in high and low voltage circuits in the manufacturer’s vehicle battery modules and battery packs.
In March Trackwise announced that it expected a delay in the manufacture and deliveries of the parts to the EV OEM, whilst the EV OEM carried out a redesign and validation to meet revised design requirements.
The change control procedure within the commercial order is under way and is likely to have an impact upon the price and timings of the contract.
Trackwise has contacted EV OEM but has yet to receive a formal response regarding the situation.
As a result Trackwise argues that the delay in parts production completion and therefore the impact upon the parts price, has been caused by the EV OEM and therefore is the liability of the EV OEM.
A statement said: “The company has advised the EV OEM that it is not discharging its obligation to conclude the CCN in good faith and, in line with the commercial order, the EV OEM has until 2nd June to remedy the breach.
“The delay caused by the EV OEM change means that the planned increase in working capital associated with start of production has now been delayed and therefore the company’s previously announced cash runway to the end of May 2023 is now extended at least to the end of June 2023.
“Trackwise continues to have a significant pipeline of identified IHT sales opportunities with a number of the previously identified EV cell-to-pack CCS opportunities progressing towards supplier nomination dates.”