Tag Archives: contracts

Commercial Contract Risk in 2017

OESA Sees Sunny Skies for Auto Industry
Coming off a record year in car sales, it’s expected that warranty and recall costs will continue to be on the rise. With that in mind, it’s vital that OEMs and suppliers have both their foreign and domestic contracts in line.… Continue reading this entry

5 Tips for Retaining Employees in the Automotive Industry

Attracting and retaining employees in the automotive industry can be very challenging, especially when competitors are doing what they can to lure the best talent. After you provide an employee with a good job, training and development, customer contacts, and access to trade secret and other confidential information, it is discouraging, to say the least, … Continue reading this entry

Narrow Ratification Victory For UAW At Ford Marks End Of Long Strange Trip

The UAW recently announced that its members approved the tentative agreement with Ford by approximately 51%, just enough to ratify the agreement despite receiving greater benefits than the workers at both GM and Fiat Chrysler. Also on November 20, 2015, the UAW announced ratification with GM on its tentative agreement, after some minor changes for … Continue reading this entry

Ford UAW Workers Defy Logic Of Ricky Bobby With New Tentative Agreement

Suppliers Get Ready For Your Recalls
If you ain’t first, you’re last. Not so say the Ford UAW workers whose bargaining committee recently reached a new tentative agreement with Ford. While Ford was the last to reach a tentative agreement with the UAW, if the membership ratifies the tentative agreement, the UAW workers at Ford stand to receive a better overall … Continue reading this entry

UAW Continues to Use Strike Threat as a Powerful Negotiating Tool

In an effort to keep the momentum in its favor, the UAW gave GM a strike deadline of Sunday, October 25, 2015, at 11:59 p.m., to reach a tentative agreement. The UAW’s strategy appears to have worked as the parties reached a tentative agreement shortly before midnight on Sunday. The announcement came just days after … Continue reading this entry

One Down, Two to Go - UAW Ratifies New Contract With Fiat Chrysler

The UAW appears to have learned from its mistakes from the first ratification vote. On October 22, 2015, the UAW announced that a majority of its membership voted in favor of the revised tentative agreement with Fiat Chrysler. So what did the UAW do right this time? First, the terms of the agreement were simply … Continue reading this entry

It’s Like Déjà Vu All Over Again

OSHA Turns Its Sights on Auto Suppliers
For the second time in just over three weeks, the UAW and Fiat Chrysler reached a tentative agreement on October 7, 2015, narrowly avoiding a strike deadline of 11:59 p.m. unilaterally imposed by the UAW. This time, however, there was no joint press conference with UAW President Dennis Williams and Fiat Chrysler CEO Sergio Marchionne … Continue reading this entry

Not So Fast My Friend – UAW Membership Rejects Tentative Agreement

During their press conference on September 15, 2015, UAW President Dennis Williams and Fiat Chrysler CEO Sergio Marchionne appeared satisfied with the tentative agreement reached after months of bargaining. The two friends smiled while congratulating each other on a job well done. According to Williams, the tentative agreement achieved the three goals he identified at … Continue reading this entry

Dennis, Tell Them What They’ve Won

After months of negotiations and several hourly extensions beyond the contract expiration date, the UAW and Fiat Chrysler reached a tentative agreement on September 15, 2015. While the full terms of the tentative agreement were not immediately disclosed, during a joint press conference with UAW President Dennis Williams and Fiat Chrysler CEO Sergio Marchionne, Williams … Continue reading this entry

Manufacturing Contracts in Distress

The automotive industry has recently enjoyed a strong period of sales growth and productivity. But even during this period, some manufacturers and raw materials suppliers continue to face pressures presented by financially troubled customers and suppliers. Witness for example the recent chapter 11 filings of Lee Steel Corporation and Chassix Holdings, Inc. In order to … Continue reading this entry

Top Legal Issues Facing Suppliers in 2015

Foley’s Automotive Industry Team has prepared this overview of the major trends we see affecting automotive suppliers this year. While not all legal risk can be anticipated, companies that are aware of litigation, enforcement, and regulatory trends will be one step ahead of their competition. Top issues include:… Continue reading this entry

Best Practices for Designing, Negotiating and Drafting Supply Chain Agreements

The terms and conditions of key supply agreements can be a significant determining factor in the profitability of both suppliers and procuring companies. These agreements also often have long lives. As a consequence, in a growing number of companies, key supply chain agreements receive C-suite and Board-level attention.… Continue reading this entry

Opportunistic Acquisitions: Buying Assets Through Bankruptcy

Though often overlooked, bankruptcy sales can be a real boon to businesses looking for a great deal. Prospective purchasers must, of course, interface with the bankruptcy court, so these companies must understand the lay of the land when looking for a bargain. For example, in the last two years, Wanxiang Group purchased an electric-powered-automobile manufacturer … Continue reading this entry

Best Practices in Drafting U.S. Government Subcontract Terms and Conditions

Federal government subcontracts are a hybrid between commercial contracts governed by state law (such as, for the sale of goods, the Uniform Commercial Code) and government contracts governed by the Federal Acquisition Regulation (FAR) and FAR agency supplemental clauses. A “subcontract” is broadly defined in FAR 44.101 as any contract “entered into by a subcontractor to … Continue reading this entry

Supplier Relationships: Where Breakdowns Occur

Supplier relationships do not break down overnight. Often the reasons or causes for the breakdowns are not those in the moment, but those that companies do not prepare for. A breakdown with the supplier relationship is often tied to a mistake that takes place days, months or even years before. These mistakes take many forms, but usually … Continue reading this entry

Conflict Minerals: Key Initial Compliance Steps for Companies

The SEC’s conflict minerals reporting rules became effective January 1, 2013, and those rules impose burdens on companies throughout the automotive supply chain, given how prevalent the so-called “conflict minerals” are in automotive applications. We covered the SEC’s conflict minerals rules in detail in a Legal News Alert we prepared in August 2012, when the … Continue reading this entry