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News | October 1, 2017
1 minute read

Michael Brady Explains Auto-OEM Directed-Buy Agreements

This guest podcast for MITechNews was presented by Warner Norcross & Judd LLP partner Michael Brady. If you are a tech company looking to sell your products to the auto makers, you need to become aware of a contract that may be used called a Directed-Buy Agreement. Michael Brady, who heads up the Warner +   Automotive Practice Group, said a Directed-Buy Agreement is when the auto Original Equipment Manufacturer (Ford, GM, FCA) directs the tech company to work with a particular Tier 1, 2 or 3 supplier.  

Directed-Buy Agreements can pose numerous problems, Brady said. Such as what happens when there is a warranty issue? Is the auto supplier responsible? Is the OEM responsible? Is the tech company responsible? That’s why Warner & recommends tech companies sign a Tri-Party Agreement that spells out roles and responsibilities. Listen to the podcast here.