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A Better Partnership


Sep 2013
September 03, 2013

Tom Manganello discusses the new GM T&C contract in Crain’s Detroit Business

This week’s Crain’s Detroit Business quotes Warner’s Tom Manganello in an article titled, “Suppliers balk at GM demands: New contracts would shift more responsibility to parts makers.”  The article suggests that the new General Motors terms and conditions used in supplier contracts are “now the harshest from automakers.”

Manganello, who leads Warner’s Automotive Industry Group, suggested that the refinement of T&Cs by GM and others minimizes OEM risk and maximizes supplier risk.  Manganello said that the new contact “forces suppliers to warrant or guarantee their products will work in systems they have no part in designing, integrating or validating,” he said.

Manganello continued by saying the new terms are "no longer a warranty, but a guarantee," allowing GM to recoup costs from suppliers perpetually, and those costs could be unprecedented.

Crain’s Detroit Business subscribers can read the full story Here

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