How much easier would it be for suppliers to do business if automakers used a standard purchasing contract?
Suppliers may have an opportunity to find out. The Original Equipment Suppliers Association, in suburban Detroit, has invited automakers to create a model contract to use with all their component suppliers.
The contract would not include language covering thorny issues such as warranty reimbursement, intellectual property or tooling ownership. But it could include standard terms for issues such as audits, inspection rights, tariffs, advertising and labor disputes.
Association President Neil DeKoker has invited the automakers to attend a meeting Sept. 23 to discuss the possibility of a standard industry contract.