Ford Issues New Terms: Summary of Material Changes

Monday, April 19, 2021

Ford Motor Company issued new Terms of Purchase, that become effective on July 1, 2021 for all Purchase Orders issued on or after that date.  This is the first extensive change in Ford’s Terms since 2004.  Butzel Long has prepared an analysis of the changes in the new Terms, which is linked at the end of this Alert. 

A few notes on the use of the Butzel Long Change Analysis:

  • It is a summary of changes in the new Terms, not a summary of the new Terms.
  • Text in a normal font is a summary of the changes. Text in italics is a commentary on the changes.
  • The summary is in table form, as illustrated in the following excerpt

New §

Old §

Heading

Summary

H/M/L

11.02

None

Chronic Supplier Improvement Process

·       If Supplier fails to meet Ford’s standards, Ford may “request” that Supplier enter the CSIP process (defined in the CSIP Handbook), at Supplier’s expense

o   CSIP provisions are unknown

High

  • Changes in style and nomenclature which do not materially change the substance of the provision are not included in the summary.
  • The new Terms include many defined terms, generally included at the beginning of the Terms. With exceptions, we have not attempted to summarize the definitions when discussed in the analysis.  However, the summary capitalizes the defined terms.  The defined terms are integral to a full understanding of the new Terms and should be reviewed together with the provisions using them.
  • Of course, a summary is no substitute for a review of the actual Terms.

The full Change Analysis can be viewed here

Please contact the authors of this Alert or your Butzel attorney for more information.

Cynthia Haffey
313.983.7434
haffey@butzel.com

Sheldon Klein
248.258.1414
klein@butzel.com

Jennifer Dukarski
734.213.3427
dukarski@butzel.com

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