August 16, 2019 / 2:21 PM / a year ago

Germany's Nextmove cancels Tesla order, citing quality issues

FRANKFURT, Aug 16 (Reuters) - German car rental firm Nextmove has cancelled the bulk of a 100-vehicle order from Tesla worth 5 million euros ($5.54 million) over quality problems with the Model 3, it said on Friday.

Nextmove said it had ordered the vehicles in 2018 but raised objections over quality and finish after taking delivery of the first 15 in the spring of this year.

It said it cancelled the order for the remaining 85 vehicles after failing to reach agreement with Tesla over how to fix quality problems including paint defects, faulty wiring, scratches on the dashboard and condensation in the headlights.

Tesla said it was in the process of repairing the issues and had provided loaner vehicles to the customer at the time the order was cancelled.

"We believe the customer's decision not to take delivery of its remaining Model 3 orders wasn't entirely due to quality issues, but was largely influenced by their frustration with an unrelated dispute from earlier in the year," Tesla said in a statement, without elaborating further.

Tesla said any customer who is unhappy with their car can return it for a full refund up to seven days after purchase.

It said customer satisfaction data showed that German customers have largely been satisfied with their vehicles, including the quality and condition of their cars upon delivery.

Bloomberg news was first to report the cancellation of the 85 vehicles. ($1 = 0.9030 euros) (Reporting by Edward Taylor; Editing by Jan Harvey)

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