|CAS||CONTINENTAL AUTOMOTIVE SYSTEMS US, INC.|
|CDS||CONTINENTAL DIESEL SYSTEMS LLC|
|CISG||United Nations Convention on Contracts for the International Sale of Goods|
|Ford||FORD MOTOR COMPANY, Kentucky Truck Plant|
|Global Settlement||Confidential Global Settlement Agreement and Release of 31 October 2009|
|GQA||General Quality Agreement for Automotive Suppliers of 23 March 2004|
|MoH||Minutes of Hearing|
|MSA||Master Supply Agreement Terms and Conditions|
|Navistar||NAVI STAR, INC.|
|PHB||Post Hearing Brief|
|PPAP||Production Part Approval Process|
|PSW||Part Submission Warrant|
|RARoA||Respondent’s Answer to the Request for Arbitration|
|Rejoinder||Respondent’s Rejoinder of 12 August 2011|
|RoA||Request for Arbitration|
|Rules||ICC-Rules of Arbitration (1998 version)|
|SA||Sourcing Agreement for Mechanical Components of 5 September 2006|
|SoC||Statement of Claim|
|SoD||Statement of Defence|
|SoR||Statement of Reply|
|SSC||Strategic Supplier Contract|
|ToR||Terms of Reference|
|VDO||SIEMENS VDO AUTOMOTIVE AG|
(1) Prof. Dr. Siegfried H. Elsing, Orrick Hölters & Elsing, Heinrich-Heine-Allee 12, 40213 Düsseldorf, Germany
- Arbitrator, nominated by Claimant -
(2) Mr. Jens Bredow, Deutsche Institution fur Schiedsgerichtsbarkeit e.V., Beethovenstrasse 5-13, 50674 Cologne, Germany
- Arbitrator, nominated by Respondent -
(3) Prof. Dr. Roderich C. Thümmel, Thümmel, Schütze & Partner, Urbanstrasse 7, 70182 Stuttgart, Germany
- Chairman, jointly nominated by the Arbitrators (1) and (2) in accordance with the respective agreement of the parties -
"Any disputes arising out of or in connection with the STRATEGIC SUPPLIER CONTRACT, shall be finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce, Paris, by three arbitrators appointed in accordance with said Rules. The seat of arbitration shall be Frankfurt, Germany. The procedural law of this place shall apply where the Rules are silent. The language to be used in the arbitration proceedings shall be English."
"2. Support of Projects
2.5 Clarification by the SUPPLIER of CONTRACT PRODUCTS
If the SUPPLIER has doubts regarding the specifications of the CONTRACT PRODUCT desired by SIEMENS VDO AUTOMOTIVE, it shall inform SIEMENS VDO AUTOMOTIVE immediately in writing of the reservations.
3.2 STRATEGIC SUPPLIER CONTRACT as Basis for Orders and Releases
Orders and releases by SIEMENS VDO AUTOMOTIVE shall be issued exclusively on the basis of this STRATEGIC SUPPLIER CONTRACT. Other conflicting conditions shall not apply, even if SIEMENS VDO AUTOMOTIVE does not expressly object to them. The PARTIES shall enter into additional INDIVIDUAL AGREEMENTS on a case by case basis for "CONTRACT PRODUCTS".
3.10 Receiving inspection by SIEMENS VDO AUTOMOTIVE
After arrival at SIEMENS VDO AUTOMOTIVE works the CONTRACT PRODUCTS are to be inspected only with regard to their type and quantity and for externally visible damage caused by transportation. SIEMENS VDO AUTOMOTIVE is not obliged to carry out a more detailed examination on arrival. If defects are noticed during the previously mentioned examination on arrival, the SUPPLIER is to be informed of them immediately in writing. In case SIEMENS VDO AUTOMOTIVE complies with the afore-stated condition the SUPPLIER hereby waives his right to reject delayed notification of deficiency.
7. Quality Assurance
7.1 Quality Assurance System
The SUPPLIER shall maintain a quality management system in line with the recent standards of the automotive industry in accordance with the General Quality Agreement for Automotive Suppliers of SIEMENS VDO AUTOMOTIVE.
The SUPPLIER shall supply CONTRACT PRODUCTS of perfect quality which conform to the valid technical and specification documents relevant to the delivery.
SUPPLIER expressly warrants that all CONTRACT PRODUCTS and work shall conform to and satisfy the drawings, specifications and samples or other descriptions furnished, specified or approved by SIEMENS VDO AUTOMOTIVE as well as applicable safety and environmental rules or regulations from time to time in force in the countries were CONTRACT PRODUCTS or vehicles equipped with CONTRACT PRODUCTS are to be sold or used ("Relevant countries"), including those of EU/EFTA/NAFTA, and shall be of merchantable quality of good material and workmanship, free from defects and in accordance with the provisions of separate QUALITY AGREEMENTS. If CONTRACT PRODUCTS are designed by or on behalf of SUPPLIER, or are in accordance with SUPPLIER specification, which may internally utilize third party’s designs SUPPLIER expressly warrants that the total design content shall be free from defects and that all CONTRACT PRODUCTS made in accordance with such design shall be fit and sufficient for the purpose(s) intended by SIEMENS VDO AUTOMOTIVE even if such design is approved by SIEMENS VDO AUTOMOTIVE.
8.6 Return of defective CONTRACT PRODUCTS
SUPPLIER acknowledges that SIEMENS VDO AUTOMOTIVE may not be able to recover all defective CONTRACT PRODUCTS which are subject to SUPPLIER’S warranty and liability under this STRATEGIC SUPPLIER CONTRACT. In such case, SIEMENS VDO AUTOMOTIVE shall provide the SUPPLIER with a representative sample of such CONTRACT PRODUCTS for the analysis of the root cause of the defect and the failure rate of CONTRACT PRODUCTS. For the analysis of the failure rate of CONTRACT PRODUCTS SIEMENS VDO AUTOMOTIVE shall apply statistical methods customary in the automotive industry and/or SIEMENS VDO AUTOMOTIVE agreed upon with its respective customer.
8.7 Delivery of defective CONTRACT PRODUCTS
Any damages incurred by SIEMENS VDO AUTOMOTIVE in causal connection with the delivery of defective CONTRACT PRODUCTS shall be borne by the SUPPLIER.
8.8 Exchange of Information
The PARTIES undertake to exchange immediately any information concerning possible damage risks and any cases of damage that have already occurred. They undertake to work together cooperatively in measures taken to avert risks to ensure that these measures are carried out smoothly."
4.7 Tensile strength and ultimate elongation
This test has to be done similar to the standard DIN 53504. If this test follows after storage in a test fluid, the part has to be dried previously according to chapter 4.13.
O-rings with an inner diameter less than 45 mm will be tested using a pulling mandrel (see attachment) instead of using the sheave according to the standard.
Diameter of the mandrel: ømandrel =(d0/2)-0,5 mm
Drawing of pulling mandrel of type 1 see attachment.
Pulling mandrels acc. to type 2 (see attachment) can be used in case, the diameter of type 1 has to be < 5 mm.
Values for new condition
Ultimate elongation > 120 %
Tensile strength > 10 N/mm²
Additional tests see table in chapter 4.14."
"The test method specified in this standard..."
Continental to Navistar updated
4. Warranty Payment to Navistar
PCR all Q issues (past and current) 25,000,000
Injector Driver Module (IDM) 4,000,000
|(a)||Fees of Representation|
|CMS Hasche Sigle|
|Womble Carlyle Sandridge & Rice|
|(Claimant’s Representatives and Claimant’s witnesses)||USD||38,611,96|
|Costs of expert J. Kiefaber||EUR||25,760,57|
|Laboratory Richter costs||EUR||1,190,00|
expend significantly more time on the case than Respondent’s legal counsel. On this background the Tribunal considers the costs claimed by Claimant, although higher than those of Respondent, still to be reasonable in amount. Finally, the costs expended for the mediation (included in the costs submitted by the parties) is considered by the Tribunal to be reimbursable as it was reasonable under the circumstances to try and find a resolution of the matter by mediation.
(1) Respondent is ordered to indemnify and hold harmless Claimant from its liability towards CONTINENTAL AUTOMOTIVE SYSTEM US, INC. by paying to CONTINENTAL AUTOMOTIVE SYSTEM US, INC. the sum of USD 25,000,000 (in words: twenty-five million US Dollars) for and on behalf of Claimant plus applicable interest in the amount of 8 % above base rate published by the European Central Bank as of 31 July 2010.
(2) Respondent is ordered to pay to Claimant the following amounts:
(a) in reimbursement of Claimant’s advance on the costs of arbitration an amount of USD 270,000; and
(b) in reimbursement of Claimant’s costs for legal representation amounts of EUR 1,017,397,86 and USD 721,547,25; and
(c) in reimbursement of Claimant’s other expenses amounts of EUR 58,623,77 and USD 38,611,96.
Already registered ?