Photo credit: Karma Automotive

Karma Automotive, a Chinese electric vehicle upstart owned by auto-parts maker Wanxiang Group, has been accused of stealing vehicle plans from VLF Automotive, a niche carmaker and strategic partner to Karma Automotive. VLF Automotive, a carmaker co-founded by former General Motors executive Bob Lutz and electric car designer Henrik Fisker, has filed a lawsuit against Karma Automotive in the US state of California, accusing the company of trying to expropriate its plans for a “luxury Humvee” which was shared with Karma Automotive.

VLF alleges that despite signing a non-disclosure agreement, Karma’s chief executive, Lance Zhou, used designs shared by VLF with the company to secretly contact VLF’s own manufacturing partners to help bring the electric Humvee to the Chinese market. VLF is seeking $18.5 million in damages to cover its investment in the Humvee project as well as its share of projected profits. The lawsuit notably comes on the heels Karma Automotive securing $100 million in funding from a group of private equity investors.

VLF Automotive is a nice luxury carmaker that was formally launched in 2016 by a trio of automotive veterans by the names of Bob Lutz, the former vice-chairman of General Motors who also previously held top positions at Ford and Chrysler; Gilbert Villarreal, an automotive manufacturing veteran; and Henrik Fisker; who had previously founded Fisker Automotive, a now-shuttered electric carmaker that Karma Automotive traces its roots to. Karma Automotive was formed after Chinese automotive supply company Wanxiang Group, its parent company, purchased assets of Fisker Automotive after it had filed for bankruptcy.