Cepton informed by Koito that OEM decided to re-scope ADAS product offerings

In a regulatory filing yesterday, Cepton stated: “As previously disclosed, Cepton, alongside its tier 1 partner, Koito Manufacturing Co., Ltd., were selected as the sole lidar provider to support a significant ADAS program through 2027. Following the series production award, Koito has, from time to time, issued purchase orders to the company for lidar components under the series production award. On December 11, 2023, Koito informed the company that the original equipment manufacturer that awarded Koito the series production award has decided to re-scope its ADAS product offerings and, as a result, all outstanding purchase orders from Koito to the company that relate to the series production award have been cancelled. As is customary when an automotive program changes, Cepton plans to seek project investment cost recovery related to any delay or cancellation of an existing program to the extent possible. Cepton continues to engage with the original equipment manufacturer in defining sensor needs and system architecture for the next generation ADAS offerings. Cepton and Koito’s collaboration on joint product development and go-to-market strategies, and engagement with other global original equipment manufacturers on new system sourcing opportunities, is expected to continue.”