Problems with supplier from UK to Germany (automotive)

Hi Sincerity

I am not sure about the German law position, but there may be some scope for you to claim against the supplier under English law. There is almost definitely some form of contract between you and them - go back through the emails, text and phone records and see what was agreed.

There would also likely be some implied terms in the contract through operation of law.

These may give rise to a claim for damages against the supplier. Depending on the nature of the relationship, you might also think about withholding payment - although be careful when going down this route as you don't want to accidentally breach the contract and end up owing the supplier for your breach.

Your problem is (in reality) with the client, the auto manufacturer. They have 'given' you this supplier, who has turned out to be a complete dud. The real answer would be a different maker of chrome parts, of which there is no shortage!

Certain UK companies in light engineering are notorious for promising something and delivering nothing or something less than what was promised.

I read your posting to my wife, who immediately broke out in laughter. She went through the same experience as buyer for a US international company based in Wittlich, Rheinland-Pfalz. She ordered a container-load of bearings (Kugellager) from a Sheffield (Yorkshire) company and it was a very big first-time order. The sales clerk told her that the container would arrive the following Wednesday. By the Monday after the promised delivery date and still no container, she phoned up and was told "When I said 'Wednesday' I was merely stating the kind of day the parts may arrive. Do you still require the parts?"

She put the phone down and ordered the bearings form Thyssen-Stahl who delivered two days later at 7am as agreed and the truck was ready for unloading at the loading ramp.

Jurisdiction - sorry, but in the absence of a contract of terms and conditions, you are going to have to take legal action in England if that is where they are. Scotland and Northern Ireland are separate jurisdictions.

There is no equivalent in English law to the good old Handelsgesetzbuch. It is all done by cases of precedent and a blizzard of confusing legislation. In other words, you are going to have to hire a lawyer and begin litigation for your 30.000€.

There is obviously no point in trying to continue to order from these people and my guess is that someone picked them because they were cheap. You now know why! The slow delivery and the varying quality and other confusion will almost certainly be because they are doing all the chrome plating by hand using old tubs and machinery and people working for low wages.

I am surprised your company allowed things to get this far. The time to pull the plug was on the first time they failed to live up to their own promises.

"We are rejecting the entire batch of parts as delivered, cancelling all other orders and cancelling all outstanding payments as per our terms and conditions. Please arrange for the collection or disposal of your parts that are still with us." was one of my wife's usual replies in such cases.

The key here is to have iron-clad terms and conditions that make the jurisdiction (Gerichtsstand) in such cases Germany and of course your local Bundesland. Also, the T&C must make Schickschulden into Bringschulden, i.e. it's up to the supplier to get the goods to you and on time and be fully and completely responsible for all transport and associated costs.

You also should maintain the right to reject the entire batch-run (i.e. more than just a single delivery) if there are quality failures. It should be the supplier's responsibility to ensure that each and every part has been inspected and checked fully.

Es gibt gute Lieferanten in Großbritannien, und wenn britische Unternehmen gut sind, können sie außergewöhnlich gut sein. Ich habe zum Beispiel ein paar Workstations bei einem Computerlieferanten bestellt (Scan Computers) und heute haben sie mir Bilder der Zusammenbau geschickt! Also, das nenne ich Service!

Das Problem bei Verchromungsarbeiten ist die Tatsache, dass kleine Unternehmen häufig nur eine Handvoll Arbeiter haben, die die Teile von Hand eintauchen, sodass die Qualitätskontrolle 'problematisch' sein kann, um es mild auszudrücken.

Viel Glück - aber nicht zu rechtsstrittig werden. Sie könnten es persönlich annehmen und zukünftige Bestellungen nicht erfüllen wollen. Ich persönlich würde es vorziehen, einen anderen Lieferanten zu haben.

I'll go back to English here so that others know what we are talking about.

Assuming that your company wants to keep these jokers as suppliers - The UK company has to be made aware that their sloppy practices are totally unacceptable in the car industry and this is best done with a personal visit and a discussion outlining the important points where they are failing.

There is a British tradition of 'muddling-through' and this works out fantastically in some situations, such as on a medieval battlefield or when putting on a big rock show in an unsuitable venue. It is however totally inappropriate for the car industry and this point must be brought home to them. You cannot 'muddle-through' when each and every part must be identical to each and every other part and quality must be 100%.

Everything will depend on how much you want to invest in this supplier. To what extent is your company prepared to watch their fingers and check everything that they do?

You can send me a private message if you have specific questions.