A few months ago, Ford Motor Company issued new Production Purchasing Global Terms and Conditions, which govern the purchase of goods, services and tech products (including tooling and service parts) purchased on or after today, July 1, 2021 (“New Terms”). This is the first substantial change in Ford’s terms since 2004.
Do you currently have a contract with Ford? If Ford’s terms apply to your contract, section 3 of the New Terms (confusingly) sets forth which set of Ford’s terms (the 2004 Terms or the New Terms) govern your supply relationship. We’re here to help clarify.
According to the New Terms, the Purchase Order includes:
These documents are referred to collectively as the “General Purchase Order Documents.”
Important to note: The date that the Purchase Order went into effect (“Effective Date”) is shown on the Purchase Order.
Additionally:
Section 7 of the New Terms sets forth the duration of the Purchase Order. Here is a breakdown:
Still confused? Here are two examples:
If you have any questions about which contract documents and/or terms govern your supply relationship with Ford, please contact Katelyn Crysler or your Warner Automotive Industry Group attorney.
