General Motors (GM) issued new general terms and conditions (Terms) for direct material, customer care & aftersales, and tooling purchases effective for requests for quotation issued on or after July 15, 2013. GM’s existing contracts with Suppliers will not be amended to include the Terms. The Terms include 40 provisions and reflect significant changes from prior iterations. This is the most extensive revision of GM’s purchase Terms.
Identifying the changes and differences from prior versions of these Terms is only the first step. Suppliers to GM need to understand the implications of the various changes to their business. And, even more important, Suppliers need to think strategically about how they will respond to the Terms GM now seeks to impose.
Foley prepared the following chart to assist Suppliers navigate the changes by not only identifying the most significant provisions and changes, but explaining the implications and recommending strategic responses to these changes.
