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General Motors has taken on a new purchasing contract that allows the company to recover costs spent on safety recalls from suppliers that provided defective components.

Not only does the contract cover new parts, it also states that even if the supplied part met with GM specifications at the time it was purchased and installed, the supply company is still responsible for the costs incurred by GM if an issue arises that requires a recall. Specifically, the contract states that the parts supplied “will not, at any time (including after expiration or termination of this contract), pose an unreasonable risk to consumer or vehicle safety.”


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GM Says Suppliers Will Now Be Responsible For Recall Costs Incurred By Faulty Parts

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