Doogal Quoted Shared Responsibility

Detroit Partner Daljit Doogal was quoted in an article from the online edition of Rubber News on June 26, 2013 titled, “Product Liability becoming shared responsibility for auto makers, suppliers.” The article discusses how the emphasis on shared responsibility has worked its way from the auto makers down to all three tiers of the supply chain as vehicle manufacturers increasingly require contributions from suppliers for potential product liability, warranty and recall claims. Mr. Doogal was quoted saying, “It’s a race to figuring out who, ultimately, is liable for the defective part. Most of the tier ones are solid players, but then you go further down the food chain to the tier twos and threes. They are definitely smaller companies that don’t have as much financial wherewithal that some of the tier ones have. “Mr. Doogal also said, “Before any deal goes through, most companies hire operational consultants to talk with the supplier’s employees and customers and look at the history of warranty and recall exposures. Companies that have higher incidents of warranty or product recall claims will depress the purchase price.”