Mexican Media Brands
GM Will Hold Suppliers Liable for Recall Costs
General Motors Co.'s new purchasing contract makes suppliers of defective parts responsible for the cost of safety recalls, Automotive News reports.
#regulations
Share
General Motors Co.'s new purchasing contract makes suppliers of defective parts responsible for the cost of safety recalls, Automotive News reports.
The Original Equipment Suppliers Assn. tells the newspaper that the new rule, which GM introduced in mid-July, states that suppliers could be held responsible for components deemed to pose a safety risk to consumers, even if the part met GM specifications.
OESA claims the contract language creates potentially catastrophic and uninsurable risk for suppliers. The association also complains that the contract requires vendors to provide unprecedented access to their financial records.
Automakers have been trying for years to increase supplier liability for parts and components that are covered by warranty. At the same time, OESA has attempted unsuccessfully to limit supplier liability to the period covered by the automaker's own vehicle warranty.
RELATED CONTENT
-
CARB Predicts 10x Hike in Fuel Cell Vehicles by 2024
California expects the number of fuel cell-powered vehicles registered in the state will surge to 23,600 units in 2021 from 4,800 through May of this year and reach 47,200 by 2024.
-
Tesla Maxes Out on Tax Credit as U.S. Sales Reach 200,000
Tesla Inc. says it will deliver its 200,000th electric vehicle in the U.S. this month, thereby triggering a phase-out of the $7,500 federal tax credit its vehicles have enjoyed.
-
Self-Driving Chevy Bolt Ticketed for Driving Too Close to Pedestrian
Police in San Francisco ticketed the backup driver in a self-driving Chevrolet Bolt for allowing the car to drive too close to a pedestrian in a crosswalk in San Francisco.