In the automotive industry, you get the LOI (letter of intent), which is your greenlight to proceed. It's always very tricky because sometimes this is respected as a contract, and sometimes it isn't.
But an OEM dumping a tier 1 supplier like that is an amateur mistake. Not even the idiots I supply do that.
Reader Comments (Page 1 of 1)
Rick @ Apr 15th 2008 7:35PM
I don't know the full details, but, why would they expect to be paid for something that never arrived?
David Clark @ Apr 15th 2008 7:54PM
In the automotive industry, you get the LOI (letter of intent), which is your greenlight to proceed. It's always very tricky because sometimes this is respected as a contract, and sometimes it isn't.
But an OEM dumping a tier 1 supplier like that is an amateur mistake. Not even the idiots I supply do that.
Ignatius @ Apr 15th 2008 8:24PM
If anything, the company they contracted didn't do what they were contracted to do (work within a time frame) and they shouldn't be paid full cost.
However, dumping them and not paying... well, that's not the best idea in the world either.