Tag Archives: Suppliers

Automotive Supplier Industry Experts Convene in Detroit and Share 2018 Outlook

The Original Equipment Suppliers Association (OESA) held its 19th Annual Conference this week in suburban Detroit under the theme:  “The Industry’s New Landscape.”  And while much of the day was devoted to autonomous vehicle developments and the potential negative impacts on the industry’s North American competitiveness that would result from substantial changes to NAFTA, the … Continue reading this entry

Stout Issues Third Annual Warranty and Recall Report

recall
By Guest Authors:  Neil Steinkamp and Robert Levine of Stout Risius Ross, LLC Massive automotive recalls continue to grab headlines and raise concerns industry-wide. Recalls of light vehicles topped 50 million units in 2016, representing the third consecutive year of elevated – and record setting – automotive recall activity. Stout’s third annual Automotive Warranty & Recall Report provides a … Continue reading this entry

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

Navigating Connected Cars in 2017: Data Protection

It’s a fact: today’s marketplace has given connected cars the green light. As an OEM or supplier accelerating to create products to meet industry demand, what challenges can you anticipate in 2017? Here is the second installment (following up our post on IP Protection) describing where we believe your attention should be focused during the … Continue reading this entry

Automotive Supplier Industry Gathers with "Industry at a Crossroads"

OSHA Turns Its Sights on Auto Suppliers
The Original Equipment Suppliers Association (OESA), the leading U.S. trade group representing automotive suppliers, convened its 2016 Annual Conference on November 2nd under the theme: “The Industry at a Crossroads.” The title reflects two basic crossroads facing the industry today:  the crossroads of the evolution to connected and autonomous vehicles, and the crossroads of an … Continue reading this entry

Top 2016 Litigation Issues Facing the Auto Supply Chain

Nobody likes a fight. Well, almost nobody. Trial lawyers, boxers, and MMA fighters might be the only ones. But, in business, the occasional fight is pretty much inevitable. What fights do we foresee for those in the auto industry in 2016? Well, we see the potential for some in the supply chain in one form … Continue reading this entry

2016 Automotive M&A Outlook

The automotive industry experienced extraordinarily high levels of deal activity in 2015. Mergers and acquisitions (M&A) in the sector are expected to remain strong in 2016, but deal volume and frequency may slightly taper off. Below is a summary of four key factors, taken from our recently published white paper on the subject, affecting automotive … Continue reading this entry

A Perfect Storm for Automotive Patent Disputes?

As the automotive industry rebounds from its recessionary levels to an all time record level of spending on vehicles and healthy profitability, one of the key drivers of the increased vehicles sales has been increased innovation and major redesigns of vehicles. The number of new products in 2014 increased nearly 50% compared to the preceding … Continue reading this entry

A Study of Recall Completion Rates

This post was written by special guest authors Neil Steinkamp, Managing Director, and  Jake Reed, Manager, from Stout Risius Ross. There has been much attention recently regarding the efforts made to complete recalls in a timely and effective manner. Significant, high-profile recalls have garnered media attention as well as regulatory scrutiny as OEMs have faced challenges … 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

U.S. Steel Producers File Antidumping and Countervailing Duty Petitions: The Potential Impact

OSHA Turns Its Sights on Auto Suppliers
U.S. steel producers Nucor, U.S. Steel, Steel Dynamics, California Steel, AK Steel and Acelor Mittal filed, on June 3, antidumping and countervailing duty petitions against some forms of corrosion resistant steel from China, India, Italy, Korea and Taiwan.… Continue reading this entry

Navigating Product Recalls

Recalls are in the news as much as ever. The number of units recalled in 2014 eclipsed the total from 2010-2013, combined. Takata’s recall is expanding to 34 million vehicles as the company enters a Consent Decree with NHTSA. Thus, 2015 will likely exceed 2014. Companies throughout the automotive supply chain face more challenges than ever before in … Continue reading this entry

Is Your Company a Federal Government Contractor?

Suppliers Get Ready For Your Recalls
Many automotive suppliers do not consider themselves federal government contractors because they only sell goods and services to the major OEMs and not directly to the federal government. However, purchase orders with OEMs or other customers that incorporate by reference Federal Acquisition Regulation (“FAR”) clauses, FAR agency supplemental clauses, or other federal government contracting laws … Continue reading this entry

European Trade Secrets Directive Looks to Unify and Strengthen Protection of Proprietary Business Information in the EU

New Federal Trade Secret Protections on the Horizon?
Home to several of the world’s largest OEMs, and a major place of operations for others, Europe has a thriving automotive industry. As borders have become more and more open in the European Union, OEMs and their suppliers often have operations in several different countries. However, these businesses, as do those in other industries, then have to … Continue reading this entry

Three Key Labor and Employment Issues Facing Automotive Suppliers in 2015

While employees are an integral part of the manufacturing process, employment related issues will continue to face automotive suppliers in 2015 including: The NLRB coming to non-union facilities; Dealing with accommodations under the ADA; and Protected confidential and proprietary information.   With many of its recent decisions and actions, the NLRB has made protecting employees’ Section … Continue reading this entry

Force Majeure Clauses: An "Out" for Suppliers Facing Shortages and Supply Chain Disruptions From West Coast Labor Dispute

With the ongoing West Coast labor dispute and increasing port congestion causing gridlock, suppliers should look to their contracts to determine whether they have the right to declare force majeure with their customers in the event of a supply chain disruption caused by the labor dispute. If there is a force majeure provision in the … Continue reading this entry

Suppliers Should Position Themselves to Mitigate Recall and Warranty Claims in 2015 and Beyond

In 2014, the automotive industry waded through numerous recalls, including recalls against component manufacturers. These recalls include multi-billion dollar recalls spanning multiple vehicle manufacturers. In 2015, the automotive industry will face continued focus on product recalls, warranty issues, and safety procedures. This year, automotive companies should mitigate their exposure to recall and warranty claims by, … Continue reading this entry

Key In-House Counsel Interview Questions Every Automotive Supplier Needs to Ask

OSHA Turns Its Sights on Auto Suppliers
As automotive suppliers continue to add employees to keep up with industry growth, legal departments or top management may desire to hire experienced in-house counsel to support the business. To ensure the right fit, suppliers should not rely solely on legal recruiters or human resources. For example, candidates likely will be able to explain common … Continue reading this entry

What Are the Barriers to Autonomous Vehicles? The Answers May Surprise You…

Foley hosted Drive Forward: The Future of Telematics on January 14 and undoubtedly, our speakers agreed – the connected car is here to stay with technology rapidly advancing towards the integration of autonomous vehicles. Speakers provided supplier, OEM and legal perspectives on the technologies and challenges associated with the increased interconnectivity of vehicles.… 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

Charting Your Way Through Chrysler Group LLC's New Terms and Conditions

Chrysler Group LLC (Chrysler) issued new general terms and conditions (Terms) for production and Mopar purchasing that will apply to all purchase orders issued after December 1, 2014. The new Terms are not retroactive and apply only to the NAFTA region. The Terms include 41 provisions and reflect significant changes from prior iterations, especially with … Continue reading this entry

Discharge for Medical Pot Use Does Not Prevent Receipt of Unemployment Benefits

The prevalence of medical marijuana cards in the worker population in the auto industry has increased significantly since Michigan first passed the Michigan Medical Marihuana Act (MMMA) in 2008. While a medical marijuana card is not a “get-out-of-jail-free-card” when it comes to keeping your job with a private employer in Michigan after a positive drug … Continue reading this entry

Suppliers Remain Cautiously Optimistic per OESA Survey

Suppliers Get Ready For Your Recalls
OESA recently released its Automotive Supplier Barometer for November 2014. The November Supplier barometer focused on Human Resources issues related to staffing benefits and training. The Supplier Sentiment Index (SSI) is the same as the September level, at 56, reflecting a positive outlook for suppliers. However, as the OESA notes, the warranty/recall issues in the … Continue reading this entry

When It Comes to Confidentiality Agreements, Just Getting the Signature Is Not Enough

New Federal Trade Secret Protections on the Horizon?
Automotive suppliers and other manufacturers frequently have to share their valuable intellectual property with third parties. A supplier might need to share CAD files with another supplier to ensure that the finished product works, or a business that has designed a product may outsource the manufacturing to a business that can better handle production. Parties to such … Continue reading this entry