Supply Chain & Manufacturing Contracts
GlobalB Law drafts and negotiates the supply and manufacturing contracts that run through automotive value chains, for OEMs, Tier-1 and Tier-2 suppliers and tooling providers.
Automotive manufacturing runs on long, tiered supply chains where a single defective component or a sudden capacity squeeze can ripple across the whole programme. GlobalB Law advises OEMs, Tier-1 and Tier-2 suppliers, and tooling and equipment providers on building supply relationships that are robust, balanced and enforceable.
We draft the full contract suite, supply and framework agreements, nomination and award letters, just-in-time and just-in-sequence delivery terms, capacity corridors and price-adjustment mechanisms, tooling ownership, quality obligations referenced to standards such as IATF 16949, and warranty and recall recourse that flows correctly up and down the chain, together with INCOTERMS and force-majeure allocation.
The harder work is risk: balancing long-term commitment against volume flexibility, managing raw-material and semiconductor shortages, addressing sub-supplier (Tier-n) and continuity risk, protecting IP and know-how in joint development, and choosing governing law and a dispute forum suited to technical, cross-border supply across the EU Customs Union.
What we do
Services in this practice
FAQ
Häufig gestellte Fragen
Who owns the tooling in an automotive supply relationship?
Tooling ownership is contractual. The OEM often funds and owns the tools while the supplier holds them for production, but arrangements vary widely. Clear title, location, maintenance and return-on-termination terms are essential to avoid disputes and protect IP, so we define tooling ownership and access explicitly in every supply agreement.
How is recall liability shared along the supply chain?
Recall costs are normally allocated through recourse and warranty clauses that pass liability to the supplier whose defective part caused the recall, subject to caps and proof of causation. Without clear recourse terms an OEM may absorb the full cost. We draft and align recall-recourse clauses across each tier so liability follows the defect.
Can a supplier limit its volume commitments?
Yes, through structure. Automotive supply often uses requirements or framework models where volumes are forecast rather than firm, and suppliers can negotiate capacity corridors, minimum and maximum bands, and price-adjustment for input-cost swings. We balance the OEM's supply security against the supplier's commitment risk.
What law and forum should govern cross-border supply contracts?
Parties usually choose a neutral governing law and an arbitration forum suited to technical disputes, while deciding whether to apply or exclude the CISG for cross-border sales of goods. We advise on governing law, arbitration versus litigation, and how to preserve evidence in quality and defect disputes.
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