Events and News

GM to Recoup Recall Costs from Suppliers

August 28, 2013

General Motors (GM), Detroit, reportedly plans to recover the cost of safety recalls from its suppliers based on a new purchasing contract. According to a report in Automotive News, the company would gain additional access to its suppliers’ financial information, as well. GM has begun to implement the contract, which reportedly would allow it to hold a supplier responsible if the automaker later determines a part poses a safety risk to consumers. There is no end date specified.

This contract represents a new potential financial liability for metalcasters supplying cast components to the global automaker. One concern is that products that meet the values specified by GM could be held liable, at a later date, due to insufficient alloy or material properties in the original part design. Several suppliers we contacted declined to
comment.