US-based General Motors (GM) has adopted into a new purchasing contract which enables the company to recover the cost of safety recalls from suppliers.
This new deal will also offer the company access to its supplier's financial information. All the contracts signed after 15 July 2013 will come under this deal.
Even though the product met with the company's specifications and poses a safety risk to consumers later, GM can make the supplier responsible for that, reported autonews.com.
The contract also states that the supplier's components will not, at any time including after expiration or termination of this contract, pose an unreasonable risk to consumer or vehicle safety.
GM spokesman Tom Henderson told the news website as saying that the company is commited to the safety of its customers and the quality of vehicles.
"One important goal of our terms and conditions [contract] is to ensure that our supply base is aligned with that commitment," Henderson added.
