Tuesday, April 13, 2021
Ford Motor Company (“Ford”) issued new Production Purchasing Global Terms and Conditions (“Terms”) related to the purchase of goods, services and tech products, including tooling and service parts purchased on or after July 1, 2021. Ford’s existing contracts with Suppliers will not be amended to include the Terms unless the contract is renewed after July 1
st. Importantly, for blanket purchase orders, the Terms will apply to all releases issued after July 1
st. The Terms include 47 sections and contain significant changes from prior iterations.
Identifying the changes and differences from prior versions of these Terms is only the first step. Suppliers to Ford need to understand the implications of the various changes to their businesses. The second step will require Suppliers to think strategically about how they will respond to the Terms that Ford now seeks to impose.
Tuesday, April 13, 2021
Ford Motor Company (“Ford”) issued new Production Purchasing Global Terms and Conditions (“Terms”) related to the purchase of goods, services and tech products, including tooling and service parts purchased on or after July 1, 2021. Ford’s existing contracts with Suppliers will not be amended to include the Terms unless the contract is renewed after July 1
st. Importantly, for blanket purchase orders, the Terms will apply to all releases issued after July 1
st. The Terms include 47 sections and contain significant changes from prior iterations.
Identifying the changes and differences from prior versions of these Terms is only the first step. Suppliers to Ford need to understand the implications of the various changes to their businesses. The second step will require Suppliers to think strategically about how they will respond to the Terms that Ford now seeks to impose.
The Terms expressly apply to the production and use of software and data.
The Terms also limit the types of Purchase Orders used to describe the goods, service, or software/date.
These changes broaden the scope of the Terms and standardize the forms used to incorporate them.
Suppliers that produce software or data should review the Terms in particular detail.
Suppliers should be cautious about relying on contractual documents, requirements or specifications unless those document qualify as a Purchase Order under this provision.
Payment And Taxes
The new provision contains three changes:
(i) refers to the Supplier Guide for payment schedules and methods instead of the Purchase Order;