7/24/2008
As you are all aware, the steel and resin price issues which have plagued the automotive industry for the past four years continue to be an issue. Apparently in response to the recent steel price increases, Johnson Controls, Inc. has yet again revised its Global Terms and Conditions (Automotive Experience) effective June 1, 2008. These new terms place JCI's suppliers at a greater disadvantage than under the January 18, 2008 revision. You can review the GTCs at the following Web address: http://www2.johnsoncontrols.com/asg/global-terms.htm.
The GTCs claim to apply to all Purchase Orders, including any revisions, issued after June 1, 2008. We are recommending that our clients immediately reject application of the June 1 terms and conditions. It is important that the rejection letter be carefully drafted to give it the greatest likelihood to be effective. If you would like to discuss how the new terms might affect your company or if you would like assistance in drafting a rejection letter, please contact the attorneys listed below.
Fredric A. Smith, 248.784.5034,
Thomas J. Manganello, 248.784.5007,
Jeena S. Shah, 248.784.5025,
Thomas J. Manganello, Chair, Automotive Industry Group
