JAPAN: Parts makers decline contract renewal with Ford due to intellectual rights sharing
Japanese autoparts suppliers have declined to renew contracts with Ford because of worries about their intellectual property rights, according to CBS Marketwatch, citing a Monday report in the Nihon Keizai Shimbun.
The paper reportedly said the companies, including Denso and Aisin Seiki, have concerns stemming from the US automaker's decision to include new provisions in its contracts obliging suppliers to allow Ford to share their autoparts technologies with other firms in the Ford group.
Besides Denso and Aisin Seiki, it was reported that industry experts estimate well over 100 autoparts suppliers, including Robert Bosch and Siemens, have yet to agree to renew their contracts.
An official at a major parts manufacturer reportedly said the rights negotiations might not be settled at least until the end of the year. Industry insiders told the Nikkei such a development could impede Ford's ability to procure high-tech parts, especially for its new vehicles.
According to CBS Marketwatch, the paper said Ford purchases autoparts from about 2,000 companies worldwide and has begun to renew contracts with those suppliers by proposing the controversial provisions since January this year.