Supplier Alert: BMW Updates its Terms and Conditions
BMW recently published a new version, dated December 1, 2022, of its BMW Group International Terms and Conditions for the Purchase of Production Materials and Automotive Components (IPC) (“New Terms”). To assist the supplier community with identifying and understanding the importance of the changes, Butzel has prepared a Summary of Significant Changes from the prior BMW Terms. A link to the Summary is provided below. For some changes, brief commentary is provided in italics.
The New Terms are not clear as to whether and when the they will apply to existing business. Suppliers should carefully review any new or amended purchase orders or other contract documents for existing business to determine whether the New Terms or prior terms are incorporated. If the New Terms are incorporated, Suppliers should assess whether they want to reject or seek modifications to them. The assessment and negotiating strategy will likely be different for different Suppliers and different parts. If you desire to object to the New Terms or obtain additional advice regarding the changes, we recommend promptly consulting with your legal advisor to mitigate the risk that you will be deemed to have accepted them by performance.
A few notes on use of the Butzel analysis:
- It is a summary of what we judge to be material changes in the New Terms, not a summary of the New Terms or of all stylistic or other inmaterial changes. It is not and cannot be a substitute for reading the New Terms. Of course, this analysis is not intended to provide legal advice and should not be relied upon for that purpose. A Supplier should consult legal counsel about specific legal and factual issues.
- The summary is in table form, as illustrated in the following excerpt:
For further information on BMW’s New Terms, please contact the Authors, a member of the Butzel Automotive Industry Team or your Butzel attorney.
Sheldon Klein
248.258.1414
klein@butzel.com
Cynthia Haffey
313.983.7434
haffey@butzel.com
Daniel Rustmann
313.225.7067
rustmann@butzel.com
[1] BMW “BMW Group International Terms and Conditions for the Purchase of Production Materials and Automotive Components,” dated March 31, 2018.
[2] BMW “BMW Group International Terms and Conditions for the Purchase of Production Materials and Automotive Components (IPC),” dated December 1, 2022.
