Industrial Insight

Disastrous… | August 15, 2013

August 05, 2013 12:01 AM

GM presses suppliers for future recall costs

Even made-to-spec parts covered, no time limit

David Sedgwick

General Motors has adopted a new purchasing contract that would allow it to recover from suppliers the cost of safety recalls — even if a component met GM specifications, says a lawyer for suppliers.

The new contract framework also demands unprecedented access to a supplier’s financial information.

Under the new contract, which GM began to implement July 15, suppliers can be held responsible if GM later determines that a component the supplier built to GM specs poses a safety risk to consumers, said Sheldon Klein, a lawyer for Butzel Long, which analyzes contracts for the Original Equipment Suppliers Association.

Advertisements

Posted in Uncategorized

Leave a Comment »

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: