Chrysler Group LLC (Chrysler) issued new general terms and conditions (Terms) for production and Mopar purchasing that will apply to all purchase orders issued after December 1, 2014. The new Terms are not retroactive and apply only to the NAFTA region. The Terms include 41 provisions and reflect significant changes from prior iterations, especially with respect to identifying additional compliance and administrative obligations for suppliers.

Suppliers to Chrysler will need to understand the implications of the various changes to their business and consider strategic responses to the new Terms Chrysler now seeks to impose.

Many of these new provisions contain terms that could be subject to varying interpretations, and therefore place the onus on the suppliers to obtain written clarification on application in the event of doubt.