ROYAL OAK – 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 Norcross & Judd 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 Norcross & Judd recommends tech companies sign a Tri-Party Agreement that spells out roles and responsibilities.
If you’re looking to work with the Auto OEMs, you need to listen to this podcast. Do so by clicking on https://soundcloud.com/podcastdetroit/m2techcast-episode-97-michael-brady-warner-norcross-judd
