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Compliance & Regulations

Why You Can’t Just “Approve” a Supplier Anymore

The Connected Vehicle Rule demands component-level scrutiny, especially with multi-region suppliers and JV structures.

September 12, 2025•1:28•HD•0 views

Why You Can’t Just “Approve” a Supplier Anymore

Transcript

One of the most challenging parts of this rule for supply chain teams who already are doing supply chain compliance is it's not as simple as just looking at your suppliers and saying, this supplier is okay, this supplier is not okay. You actually need to understand for each component whether the supplier is okay or not based upon what that supplier is doing. So you can have a supplier that manufacturers in, in Europe and in China. And that supplier is not just in and of themselves okay or not. It depends on whether the component you are buying was manufactured in Europe or if it was manufactured in China. And that's the that's where the diligence, requirements have have gone up so much compared to what everyone is used to. And and that's the complexity. Yeah. I mean and and to the point, I mean, kind of combining some of those those concepts. Say you did have a JV in China that was, you know, making software for the Chinese market, and then you had a software that was made by the same, you know, sister company, but wholly in the US, you know, the you know, those would be distinct. But are those two entities collaborating with each other and in the design and development, and does that trigger the, does that, you know, basically taint the US software? And I think in many cases, it could.
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