Tag Archives: supply chain

Tariffs Wreak Havoc with The Auto Industry

tariffs
Trade issues have been concerning the automotive industry for some time.  Whether it be NAFTA renegotiations (or NAFTA scrapping), Section 232 Tariffs, Exceptions to Section 232 Tariffs, ever since the current administration was elected, the Dashboard has been predicting that trade issues could upend the automotive industry.  That day appears to have come as the … Continue reading this entry

Supply Chain Disruptions Reportedly Increased by 30 Percent Last Year

supply chain
According to a report by JLT Specialty, the automotive industry “was the most disrupted sector in 2017” with an increase in supply chain disruptions by 30 percent over 2016.  The JLT report identified the top five supply chain events as: Factory Fires or Explosions Mergers and Acquisitions Hurricanes, Typhoons, Cyclones Business Sales or Spin-offs Labor … Continue reading this entry

Understanding The Warranty Of Fitness For Particular Purpose In The Automotive Supply Chain

tariffs
For automotive suppliers, some of the most important terms in any contract for the purchase or sale of goods are the warranties that apply to those goods. This article will address one particular kind of warranty – the warranty of fitness for particular purpose. A warranty of fitness for particular purpose generally arises in one … Continue reading this entry

Overview of Distribution Supply Chain Options

supply chain
When determining how to sell a product in the marketplace, there are a number of supply chain options from which to choose, each with its own set of legal implications.  However, the primary consideration in determining how to sell a product should be what makes the most sense from a business perspective (for example, if … Continue reading this entry

Protecting Your Supply Chain in the Face of Potential Auto Industry Challenges in 2018

Workforce
As the economy has improved and unemployment has fallen in the nearly 10 years since the Great Recession, North American vehicle sales volumes have also steadily increased and the forecast remains strong for 2018. Bloomberg estimates that approximately 16.7 million vehicles will be sold in 2018, with the majority being light trucks and sport utility … Continue reading this entry

Mobility, New Technology, Compliance Take Center Stage at Foley’s 2018 Auto Show Program

Exponential technological growth and transformative change are creating unique opportunities and challenges for the automotive industry. That was a key theme of Foley’s 2018 Auto Show Program, hosted by Foley partners Mark Aiello and Ann Marie Uetz and held on January 17, 2018, alongside the North American International Auto Show in Detroit.… Continue reading this entry

NAFTA Renegotiations Create Uncertainty for Automakers

white house
The promise to renegotiate or else withdraw from NAFTA was one of the central points of the Trump campaign that helped him win states like Michigan, Ohio, and Pennsylvania.  In keeping with his campaign promises, the Trump administration has since proposed to tighten automotive content rules and rules of origin (from 62.5% to 85%) to … 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

What is a “Counterfeit” Part? DOD's Definition Might Surprise You

The U.S. Department of Defense (DOD) recently published its first set of proposed regulations that would impose specific anti-counterfeiting obligations on defense contractors. These proposed regulations represent a partial implementation of Section 818 of the fiscal year (FY) 2012 National Defense Authorization Act (NDAA), which directed DOD to issue regulations making certain “covered” defense contractors responsible … Continue reading this entry

Most Favored Nation (“MFN”) Pricing Draws Scrutiny as Potential Anticompetitive Practice

An interesting and growing debate in the antitrust arena is whether most favored nation (“MFN”) pricing provisions are pro-competitive or anticompetitive. For many years, MFN provisions have been considered a fairly noncontroversial contract term included by purchasers in an attempt to assure that other buyers do not receive a more favorable price. But not all … 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