Legal Advisory in the Automotive and Supplier Industry

Labor Law Implementation of Transformation Processes

The automotive and supplier industry is under considerable pressure to adapt – driven by the transformation to electromobility, the digitalization of production processes, the increasing use of artificial intelligence, and geopolitical and economic uncertainties. These developments not only change business models but also directly impact working conditions and the organization of operational processes. Labor law issues are moving to the forefront of strategic corporate planning and are becoming a decisive factor in shaping transformation processes in a legally sound and future-oriented manner.

Our focus areas

• Personnel adjustments for personnel cost reduction and optimization, especially in the event of site closures or declining orders
• Response options to order declines, especially short-time work and working time flexibility
• Support for negotiations on reconciliation of interests and social plans with works councils in the event of operational changes (e.g., site closures or introduction of new working methods)
• Implementation of qualification and further training measures for the transition to automation
• Development of transformation agreements with works councils
• Co-determination of the works council in the introduction of new technologies and automation
• Design of modern working time models

More on Labor Law

Foreign Trade Law, Customs & Export Control

Global markets open up enormous opportunities for the automotive and supplier industry. At the same time, international trade in vehicles, components, and high-tech systems requires compliance with complex regulations. Whether it’s export control of vehicle technologies, customs clearance for components, or investment reviews in international collaborations: legal certainty, clear structures, and strategic foresight are crucial to avoid risks. This ensures the focus remains on the core business: safe and successful global trade. We support you with the following services:

Our focus areas

• Export control, foreign trade law, and sanctions regulations, including dual-use classification, technology transfer, and licensing procedures
• Review of Customs Health Checks or Export Control Checks
• Support for investment controls: from review according to AWG/AWV to declarations of no objection, including for foreign investors
• Excise duty, customs tariff issues, special customs procedures, as well as preferences and rules of origin
• Advice on trade policy measures such as anti-dumping, tariff quotas, suspensions, and import restrictions
• Consulting on e-commerce, international contract drafting, risk management, compliance, and IT customs systems
• Legal representation before authorities and courts
• Offering tailored training and knowledge transfer for companies and employees

More on Foreign Trade Law, Customs & Export Control

Capital Markets & Financing

High capital expenditure, long product cycles, and complex structures characterize the automotive industry. We address the sometimes limited access to external capital with entrepreneurial thinking and innovative financing solutions – not least to open up new technologies and markets or to react early to potential crisis scenarios.

Our focus areas

• Consulting on equity and debt financing
• Financing of acquisitions and participations
• Structuring international credit agreements for suppliers with bank pools
• Advising OEMs and Tiers on investments in the start-up and VC sector
• Structuring international cash pools

Disputes & Litigation

The increasing complexity in the supply chain and the volatile market act as clear drivers for tensions along the supply chain and in distribution structures. With a specialized working group, we address these developments purposefully and responsibly. Our expertise combines many years of experience in contentious proceedings with deep industry understanding – for solutions that are legally sound and practical.

Our focus areas

• Out-of-court support for OEMs and tier suppliers in developing conflicts (esp. assistance with “litigation-proof documentation and evidence securing”)
• Litigation before national instances as well as national and international arbitration proceedings, specifically in the areas of:
  • Procurement and Sales (e.g., for expenses from services)
  • Product Liability (e.g., for expenses from recall campaigns)
  • Distribution Law (modifications in the distribution system, terminations, contract breaches)
  • IT/IP (e.g., trademark disputes)
  • Corporate
  • Post-M&A
• Judicial challenge of antitrust fine decisions before German or European instances, antitrust damages, and antitrust disputes arising from compliance violations
• Mass Proceedings (Mass Litigation)

Internal Corporate Understanding to Avoid Organizational Fault and Fines

Compliance is a management task and an integral part of responsible corporate governance. Tailored measures and coordinated processes minimize the risk of organizational fault and fines. Conceived interdisciplinary, compliance forms the bracket around corporate organization. Only the interplay of legal consulting and other business areas – tailored to your individual needs – creates a holistic understanding. Our experts from the compliance team provide comprehensive and practical advice.

Our focus areas

• Consulting on the implementation of a compliance structure and organization, compliance guidelines/organizational policies (“readiness check”)
• Legal opinions on the adoption of measures by corporate bodies and management/compliance statements (“Management Protection”)
• Compliance-oriented “due diligence” upon assumption of office by corporate bodies/company acquisition
• Training measures/further education (board training, employee qualification, e-learning systems)
• Operational Services (consulting on the introduction of whistleblower or ombudsman offices, advice on handling tips, legal internal investigations)
• System reviews (statements, simulation with IT tool IDEA)
• Emergency Number

Corporate, M&A

The profound structural change in the automotive industry increases the need for consulting in the Corporate and M&A sectors. While new market participants – especially from the IT sector – are emerging with digital mobility and connectivity solutions, established companies face the challenge of maintaining, expanding, or strategically realigning their position. To implement these strategic projects, we support you with corporate restructurings of all kinds, as well as international and national corporate transactions, including joint ventures.

Our focus areas

• National and international restructurings
• Buy- and sell-side support for international and national M&A transactions (due diligence, contract drafting)
• Consulting on national and international joint ventures
• Support for investments in the start-up and venture capital segment

IT Law

You rely on innovative IT solutions or Artificial Intelligence – and need clear legal frameworks. We support you from strategy to implementation: precisely, practically, and always with your business goals in mind.

Our focus areas

• Consulting on IT procurement (software and hardware licensing agreements, Software-as-a-Service, Service Level Agreements, escrow and deposit agreements), IT outsourcing projects (IT and Business Process Outsourcing, and project contracts for complex IT systems)
• Connected Vehicles: Licensing agreements, data protection compliance, mobile payment services
• Data Protection (e.g., for shared services and the utilization of user data by other market participants)
• Smart Factory networking and management consulting on IT security and IT compliance (e.g., adherence to KRITIS requirements for the transport and traffic sector)

Industrial Property Rights & Copyright

At the core of our consulting in industrial property rights and copyright is the protection of brands and technologies for our clients in the automotive industry. Rights to development results and inventions, as well as proactively designed intellectual property strategies, are crucial for sustainable corporate success. They are gaining increasing relevance both in the relationship between OEM and supplier and among competitors. Furthermore, we advise on competition law issues such as advertising appearances and statements of all kinds or anti-competitive behavior by competitors.

Our focus areas

• Conception and implementation of intellectual property strategies for technical developments in the supply chain (also internationally)
• Consulting and representation on all competition law issues (especially green claims, comparative advertising, regulatory disputes that also constitute a violation of the UWG – Unfair Competition Act)
• Drafting and negotiation of R&D agreements, contracts for patent, know-how, and trademark licenses, for technology transfer, merchandising or sponsoring, NDAs, as well as IP clauses for employment, managing director, or company agreements
• Enforcement of patents and trademarks, nationally and internationally
• (Global) IP rights portfolio management, including the development of worldwide strategic protection concepts
• Combating product piracy through strategic action against manufacturers and distributors at home and abroad, including initiating seizures, close cooperation with customs authorities

More on IP & Media

Supply Chain

Complex supply and distribution structures characterize the automotive industry worldwide – both on the purchasing and sales sides. The increasing variety of model variants and changing supply chains increase complexity and require a high degree of flexibility and foresight. At the same time, there is the fundamental risk of volatile demand. To reduce economic risks and exploit legal potential, precise procurement and sales contracts, a sustainable distribution structure, and a well-considered distribution system are essential.

Our focus areas

• Supplier Relationships: Drafting of all relevant purchase and sales contracts, including ancillary agreements for the automotive industry (framework agreements, letter of intent, letter of nomination (project agreement), quality assurance agreements, warranty agreements, ppm agreements, purchase, sales and service conditions, tool agreements, call-off systems, logistics agreements, etc.)
• Distribution Law: Conception and optimization of distribution systems, national and international, as well as consulting on after-sales systems
• Shared Driving: Consulting on the drafting of all relevant distribution and consumer contracts (B2B, B2C)
• Supply Chain Due Diligence Act (LkSG): Review and support of compliance along the supply chain, consulting on sustainable distribution systems

Antitrust Law

Global supply chains, diverse forms of cooperation, standardization, and market power – these are typical antitrust challenges in the automotive industry. Hardly any other industry has been as heavily affected by international antitrust proceedings in recent years. Our team knows the specific antitrust characteristics of the industry precisely. As reliable trailblazers, we identify company- and industry-specific risks and help you preventively avoid antitrust violations and fines. In antitrust and merger control proceedings, we conduct the procedures before the competent antitrust authorities.

Our focus areas

• Development of tailored, efficient, and needs-based compliance measures and industry-specific training
• Execution and coordination of national and international merger control proceedings
• Representation in fine and administrative proceedings before antitrust authorities, internal investigations, and support during antitrust authority searches
• Consulting on all aspects of distribution antitrust law, including spare parts distribution, IP antitrust law, the Motor Vehicle Block Exemption Regulation, and other antitrust risks in the supply chain
• Antitrust-compliant structuring of joint ventures and other cooperations of all kinds (e.g., competitors, R&D, purchasing, sustainability)

Product Liability

To avoid damage in product liability cases or limit it in a crisis, our specialized team combines all relevant product liability aspects: contract law, tort law and product liability law, public law (e.g., product safety law), insurance law and criminal law, as well as dealing with supervisory authorities. As forward-thinking trailblazers, we advise on the best possible prevention of product liability cases already during the market launch of new products, support the establishment of quality management systems, and assist with the implementation of recall management systems.

Our focus areas

• Support for the execution of product recalls and representation before supervisory authorities
• Consulting prior to placing products on the market, especially regarding compliance with regulatory requirements (Product Compliance)
• Establishment of recall management systems
• Review of technical documentation
• In-house training in product liability, product safety, and the legally sound design of supplier systems

Restructuring & Insolvency

As in hardly any other economic sector, producers and suppliers in the automotive industry are linked and interdependent through a division of labor. If a company falls into crisis, a standstill of the entire supply chain can threaten without timely precautions. To avoid this standstill, we rely on our full-service approach and support our clients in challenging times, focused and targeted, until the turnaround. They benefit from our close cooperation with banks, M&A advisors, and other restructuring experts.

Our focus areas

• Support during emerging crisis periods (e.g., corporate law, (re-)financing, supplier contracts, asset protection (know-how), labor law, and insolvency law structuring options in the form of protective shield proceedings)
• Consulting on own judicial restructuring (insolvency proceedings, protective shield proceedings)
• Consulting on insolvency cases of customers or suppliers, as well as optimization of supply contracts and tool agreements (Trade Agreements)
• Distressed M&A: Acquisition of companies before (as part of restructurings) and out of insolvency
• Consulting on short-time work, workforce reduction, and restructuring measures, especially negotiation of reconciliation of interests and social plans

Commercial Criminal Law & Prevention

Companies must navigate a jungle of legal regulations nationally and internationally. Missing or delayed action can lead to fines and criminal sanctions – with direct impacts on the company. Investigative measures, in particular, rely on the element of surprise, whether during searches, ad hoc inspections, or even written requests for information – regardless of whether the company is directly or only indirectly affected. The right strategy and a prudent approach are crucial. We provide support with criminal law expertise as a trusted partner, reliably and at eye level.

Our focus areas

• Individual and corporate defense in fine and criminal proceedings
• Consulting and support for official measures, e.g., searches/adhesion applications in criminal proceedings for asserting claims
• Consulting on filing criminal complaints, especially for breach of trust/embezzlement/theft, data protection violations, and cyberattacks
• Strategic considerations before critical tax audits
• Corrections and voluntary disclosures in tax, levy, and customs matters
• Derivation of follow-up measures from previous commercial and tax criminal proceedings
• Clarification of facts within the scope of forensic investigations and due diligences (supported by mass data analysis with IDEA)