GM Says Suppliers Will Now Be Responsible For Recall Costs Incurred By Faulty Parts

General Motors has taken on a new purchasing contract that allows the company to recover costs spent on safety recalls from suppliers that provided defective components.

Not only does the contract cover new parts, it also states that even if the supplied part met with GM specifications at the time it was purchased and installed, the supply company is still responsible for the costs incurred by GM if an issue arises that requires a recall. Specifically, the contract states that the parts supplied “will not, at any time (including after expiration or termination of this contract), pose an unreasonable risk to consumer or vehicle safety.”

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Agent009 - 8/7/2013 10:29:27 AM

+1 Boost

Well duhhh!!! Shifts the burden of quality to the correct source.

gkearns56 - 8/7/2013 2:18:45 PM

0 Boost

And you think those suppliers will accept this logic from GM - of course not. They will say, "have your UAW auto workers install the dang thing correctly, and it will function/work according to how we tested that part in our lab". And you don't think those suppliers will simply roll over for GM. get ready for the first battle.

TehShibbs - 8/7/2013 5:35:47 PM

+1 Boost

This has been common practice from most Japanese car compaies for as long as I can remember. I know for a fact Toyota/Lexus does this as I used to be in charge of warranty items for a Lexus dealership.

Chevy is finally getting with the times!