CLEPA, the European vehicle component suppliers association, want a fundamental change in the way their members do business with automakers.
Later this year, CLEPA will release recommendations for contract terms and conditions.
At issue are the risks CLEPA members believe they are taking when entering into agreements.
Among those risks are warranty and recall obligations as well as rising expenses due to increasing raw material costs. CLEPA hope the proposed recommendations will provide suppliers and vehicle manufacturers with a new basis for contracts when they renegotiate.
A CLEPA committee is currently analyzing a number of automaker-supplier contracts, seeking to identify problematic terms and conditions and establish a list of best practices. The committee has yet to release a formal list of terms and conditions they consider unfair, though suppliers regularly complain of automaker demands for the right to terminate or alter contracts at will.
CLEPA are also unhappy about assuming the financial risks linked to rising raw material prices and currency fluctuation, as well as the cost of investing in emerging markets.