OESA 2017 Association Update

Original Equipment Suppliers Association

2017 Association Update

OESA BY THE NUMBERS

5,709

867

Attendees at 2016 OESA Events

Supplier Executives Engaged in OESA Councils

450+

35+

MEMBER COMPANIES

INDUSTRY EVENTS

(59 new members in 2016)

15

PEER GROUP COUNCILS

(Including the New Tooling Council)

(Member-driven topics)

OEM TOWN HALLS

3 Strategic Initiatives: 1. Strengthen suppliers’ voice in Washington, D.C. 2. Serve as a relevant resource on advanced 3.

vehicle technology Advance the global issues of the supplier community

2 │ 2017 Association Update

8

• FCA • Ford • General Motors • Honda • Nissan • Rivian Automotive • Toyota North America • Volkswagen

ONLY 1 MISSION: Champion the business interests of automotive original equipment suppliers

TABLE OF CONTENTS

8 9 12

The Economic Impact of Automotive Suppliers...........................4 Letter from the President.................................................................5 2016-17 Key Accomplishments.......................................................6 OESA Events and Activities............................................................8 Government Advocacy ...................................................................9 Executive Peer Group Councils....................................................10 Global Activities...............................................................................12 2016 Financial Summary................................................................13 About the Association.....................................................................14

16

Member Resources.........................................................................16

18

Association Membership...............................................................23

2016-17 OESA Board of Directors................................................18 2017 Member Companies.............................................................21

OESA Staff .....................................................................................26

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THE ECONOMIC IMPACT OF AUTOMOTIVE SUPPLIERS With more than two-thirds of a car’s value generated by suppliers, members of the Original Equipment Suppliers Association are driving advances in technology in the automotive industry.

Suppliers directly impact the industry’s emerging consumer lifestyle technologies, develop systems that can reduce traffic fatalities and improve safety on roads worldwide.

Given their size and the role that they play in the automotive industry, OE suppliers make up the majority of direct employment in the motor vehicle parts manufacturing industry. The automotive supplier community has seen a 23.3 percent growth in employment since 2012, representing 523,000 direct jobs in the United States.

424,000 DIRECT U.S. JOBS IN 2012

4 │ 2017 Association Update

523,000 DIRECT U.S. JOBS IN 2015

23.3% INCREASE

LETTER FROM THE PRESIDENT OESA is pleased to present the 2017 Association Update, which highlights our strategic initiatives, advocacy and international activities, noteworthy achievements, and major events in 2016 and early 2017. Most importantly, it outlines the importance of the U.S. supplier industry and its direct impact on the American economy and workforce. More than two-thirds of a car’s value is generated by suppliers, and a vast majority of automotive technology and innovation is provided by the supplier members of OESA. Our mission is to champion the business interests of the supplier community – a commitment that we proudly embrace. Throughout the supply chain and on U.S. government affairs, OESA's role is to build and foster relationships, educate officials and the industry, and collaborate with customers to help solve issues.

For 2017 and beyond, our strategic initiatives include: • Strengthening our voice in Washington, D.C. With the help of our MEMA advocacy team, OESA continues to command influence in supplier government affairs.

• Serve as a relevant resource on advanced vehicle technology.

As automotive innovation takes center stage in the industry, OESA is committed to understanding the new landscape, promoting the opportunities, and navigating the challenges.

• Advance the global interests of the supplier community.

Globalization has created a tremendous opportunity for suppliers. OESA continues to expand international relationships to help them stay informed of the global marketplace to make business decisions.

While other industries, such as telecommunications and retail, have already been disrupted, the automotive industry is at the beginning of its drastic change. OESA will represent the voice of the supplier community, regardless of the times.

As always, please feel free to contact me with comments and questions at 248.430.5963 and jfream@oesa.org.

Our mission is to champion the business interests of the supplier community – a commitment that we proudly embrace.

Julie A. Fream

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2016-17 OESA KEY ACCOMPLISHMENTS

OESA uses the collective strength of more than 450 organizations to champion the business interests of automotive OE suppliers.

• Julie Fream was named in Crain’s “Most Influential Women in Michigan” for her work in the supplier industry

Following are a few recent accomplishments and activities that demonstrate our engagement in and commitment to the supplier community:

• Testified before Congress twice on motor vehicle safety and at the House Energy & Commerce Committee on Automated Technology and Motor Vehicles

Representing the "Voice" of automotive OE suppliers • Held engagement/networking events with NHTSA and automotive suppliers to directly address issues of common concern

• Julie Fream received the MSED Executive Leadership Award for her role in realigning the goals of the Association for exponential growth

Providing the right "Forums" for the supplier community

• Shared supplier sentiments and the outlook of the supplier industry at the Management Briefing Seminars (MBS) in Traverse City

• Provided suppliers with one-on-one networking opportunities with key decision makers at eight OEM Town Hall meetings

• Sponsored the Automotive News PACE Awards to support and promote supplier innovation

• Coordinated the inaugural member briefing at the Consumer Electronics Show (CES) to better understand the new technology landscape

6 │ 2017 Association Update

• Held supplier meetings in Silicon valley to establish relationships with new entrants to the industry • Hosted Mark Rosekind, former Head of NHTSA, at the OESA Annual Conference to discuss the future of the industry • Created first “Cyberliability” event to address emerging liability concerns in the industry • Graduated the third class of the Young Leadership Council (YLC) • Coordinated supplier panels for Autoline’s Supplier Symposium at the North American International Auto Show; supplier CEO 's discussed the impact of the new administration

Offering pertinent "Resources" for and about suppliers: trends, information and analysis • Updated three key OESA publications with the most current information:

OEM Warranty Programs OEM Terms & Conditions OESA Member Directory • Launched the fifth Young Leadership Council aimed at helping members retain high-potential employees • Administered 35+ supplier industry surveys & 4 Quarterly Supplier Barometers to capture supplier sentiments and best practices • Developed new member data and communications systems for better and easier member engagement • Partnered with KPMG for a new study, “Autopulse,” that provides automotive industry insights from the supplier perspective All of OESA's efforts are guided by the mission to champion the business interests of the automotive supplier community.

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GOVERNMENT ADVOCACY Through MEMA’s government affairs office, OESA member companies are well represented in Washington.

MEMA advocates for policies that foster strong economic growth, fair trade policies and equipment standards.

MEMA and OESA seek to advance technology, intellectual property rights protections, and policies that bolster the competitiveness in both domestic and global markets.

Below are a few key MEMA government advocacy initiatives: Industry Studies MEMA actively invested in two studies that focus on the economic impact of the industry, and the impact of supplier technology. These studies offer critical data to support advocacy efforts in D.C. and state capitals.

Economic Impact Study This study quantified the economic contribution of motor vehicle components manufacturers nationwide. It found that the motor vehicle supplier industry represents the largest sector of manufacturing jobs in the U.S., directly employing more than 871,000 people.

Advanced Driver Assistance Systems Study Commissioned by The Boston Consulting Group (BCG), A Roadmap to Safer Driving Through Advanced Driver Assistance Systems, examined the benefits of advanced driver assistance system (ADAS) technologies.

The study concludes that if new car buyers invested in the most common ADAS features currently available, the widespread adoption could:

MEMA Government Affairs Committee (GAC) The GAC serves as a vital platform in advancing OESA member business interests on national, state and international policy issues. The committee provides input on government relations activities to promote the supplier industry.

MEMA Political Action Committee (PAC) MEMA’s PAC is vital to helping suppliers shape a Congress that understands the industry and supports manufacturing policies.

Washington Insider The Washington Insider is an informative weekly e-newsletter that covers all federal legislative, regulatory, and state issues impacting each segment of the motor vehicle supplier industry. This is a “must read” for all AASA, HDMA, MERA and OESA members.

Action Center The MEMA Action Center provides member companies a vehicle to communicate directly with members of Congress on a variety of important issues.

State Issues MEMA serves as an advocate for suppliers by closely monitoring state legislative activities and advocating for issues of interest to the industry.

State Leadership Awards The MEMA State Leadership Award allows the supplier community to recognize outstanding state leaders who have provided unyielding support to the motor vehicle supplier industry.

• Eliminate approximately 28 percent of all motor vehicle crashes in the United States • Prevent 9,900 fatalities per year • Save more than $250 billion annually in societal costs MEMA’s goal is to educate decision makers on the promise of these innovations to speed widespread adoption.

Legislative Summit The annual MEMA Legislative Summit in Washington, D.C., features the latest political and economic commentary and discussions on key public policy issues facing the industry, and offers suppliers the opportunity to meet with members of Congress.

8 │ 2017 Association Update

For more information on any of these government affairs activities, visit www.mema.org contact the MEMA Washington, D.C. office at 202.393.6362

OESA EVENTS AND ACTIVITIES OESA events and activities play an important role in the industry by keeping members abreast of the issues that directly impact their business. Event programming is industry-driven to ensure the most relevant and timely issues are presented.

Cornerstone OESA events help members make critical decisions and provide actionable insight on international and governmental affairs issues, OEM relations and other industry issues of common concern.

International Activities & Government Relations

OEM Engagement Initiatives

ADAS Impact Sudy on Widespread Adaption Economic Impact Study of the Supplier Industry Canada/U.S. Automotive Dinner First 100 Days of the New Administration Mexico-The Myths, The Realities and the Opportunities MEMA Government Affairs Committee MEMA Legislative Summit MEMA Political Action Committee NHTSA Supplier Symposium State Leadership Awards Supplier Delegations from Brazil, Germany, India and Israel

FCA Town Hall FCA North America Supplier Council - Member Ford Town Hall Ford Supplier Council - Member General Motors Town Hall Honda Town Hall North American International Auto Show Tours Nissan Town Hall Rivian Automotive Town Hall Toyota Town Hall Volkswagen Town Hall

Topical Events and Podcasts Annual Conference: The Industry at a Crossroads Automotive Tooling Update AlixPartnersŽ Global Automotive Outlook Commodity Materials & Pricing Conference Consumer Electronic Show (CES) Briefing Cyberliability Increasing Your Profits by Improving Your Supplier Relations Legal Trends to Watch in 2016 Marketing Summit: Communicating Globally, Socially and Legally Mobility Supplier Forums in California (4) Navigating Today's Auto Intellectual Property (IP) and Information Technology (IT) OEM Terms & Conditions and Current Legal Issues Quarterly Industry Podcasts (4) Recalls: Navigating the New Normal South Carolina Regional Meetings (2) Warranty 2017: Terms, Trends and Best Practices in Complicated Times West Michigan Regional Meeting │9

EXECUTIVE PEER GROUP COUNCILS the intersection of automotive, information technology and manufacturing. Recent topics include real-time threat analysis, the value of the cloud and data classification.

Chief Purchasing Officers Council (CPO Council) CPO Council meetings cover a broad range of topics relevant to purchasing executives. Members share supplier purchasing sentiments on topics such as conflict minerals, customer purchasing practices, make/buy decisions, material market forecasts and inventory hedging strategies.

Rated as one of the most valuable Supplier Member benefits, OESA’s executive peer group councils bring together more than 860 executives to address common issues, share best practices and network. Through quarterly meetings with sought-after guest speakers and candid roundtable discussions, supplier executives gain relevant and actionable insight to address the unique concerns within their own functional areas.

Participation in OESA councils is open to senior executives at Supplier Member organizations.

Automotive Public Relations Council (APRC)

Chief Executive Officers Council (CEO Council)

The APRC is a network of public relations professionals dedicated to the promotion of the automotive industry. It serves as a networking and information resource and is open to non-members.

Facilitated by OESA President and CEO Julie A. Fream, CEO Council members address some of the most pressing business and industry issues. Supplier CEOs hear from subject matter experts and query each other on various topics, such as the economic outlook, hiring/ retaining talent, supplier/customer relations, innovation, and the impact of new government regulations.

Advanced Technology Council (ATC) Advanced Technology Council meetings focus on a wide range of topics related to cyber security, CAFE (regulations, materials & light weighting, powertrains), Vehicle connectivity (i.e. V2X, V2V, telematics, OTA, and infotainment), as well as automated and ADAS technologies.

10 │ 2017 Association Update

Communications Executives Council (CEC) Communications and marketing executives from Supplier Member organizations meet to address common issues such as marketing ROI, social media metrics, global communications, and media relations. CEC members are regularly invited to comment on industry topics in the media.

Environment, Health and Safety Council (EH&S Council) Members of the EH&S Council share information on safety performance improvement, energy use and sustainability initiatives. Discussions cover topics on regulatory and legislative issues related to health, safety, the environment and public policy. Recently, thought leaders spoke on accident investigation, operating in China and sustainability.

Chief Information Officers Council Human Resources Council (HR Council) (CIO Council) The HR Council draws on the The CIO Council provides a forum specialized expertise of human for members to exchange ideas resources executives. Subject and address common issues at matter experts discuss various

topics, such as attracting and retaining specialized talent; training and development best practices; and implementing policies. Members receive frequent updates and insight on regulatory and legislative issues including health care and labor law reform.

Legal Issues Council (LIC) In-house counsel from Supplier Member companies discuss business-critical legal issues such as product liability, industry terms and conditions, directed buys and intellectual property protection.

Members of the council contribute to the ongoing analysis of OEM terms and conditions and discuss topics from other councils from a legal perspective.

Sales Executive Council (SEC) Discussions at SEC meetings cover a broad range of business development and sales topics.

Supplier sales leaders have the opportunity to query OEM representatives, receive sales training and tips, network with industry peers and discuss the latest sales strategies.

Small and Medium Enterprise Presidents Council (SMEP) Led by Julie A. Fream, this council addresses the unique challenges facing supplier organizations that have up to $150 million in annual revenue. Subject matter experts and roundtable discussions cover a wide range of strategic and tactical issues from a “small� business perspective.

Recent discussions include the current business and economic landscape, changes to accounting and tax laws and risk management.

Tooling Council (TC) Tooling Council members work together to address many industry issues and review the results of the OESA/HRI Tooling Barometer to better understand the unique operational issues of the tooling community. Tool makers in the automotive OE sector are welcome to join this council; OESA membership is not a requirement.

Warranty Management Council (WMC) The WMC offers a unique forum for warranty professionals to discuss topics such as warranty management data systems and cost recovery negotiations. OEM representatives address the council at almost every meeting.

Recent presentations have focused on R/1000 warranty metrics, the legal aspects of ISO 9001, and understanding recall and defect investigations.

employees in all functional areas.

During the two-year program, young leaders receive professional development opportunities through open discussions and presentations on a wide range of topics including global program management, essential speaking skills and leadership. Graduates are well-equipped for the next step in their career.

YLC Nominations are accepted annually in Q3 for the next class.

To learn more about OESA Peer Group Councils, contact Member Services at 248-952-6401 or info@oesa.org.

The council champions the comparative analysis of OEM warranty programs, supports the warranty audit process certification with AIAG and contributes to many warranty-related surveys.

Young Leadership Council (YLC) The YLC was created to help members retain high-potential │ 11

MEMBER RESOURCES OESA is the industry’s key resource for supplier trends, sentiments and best practices. Membership provides access to unique data, analysis and information.

Through a variety of industry surveys, white papers, trend analyses, publications and other content, supplier executives are equipped with the right information to stay abreast of the industry.

Online Resources In cooperation with Affiliate Members, OESA maintains an online resource center with a broad range of timely and critical information. It serves as a resource bank for OESA members.

Resource content and analysis comes from: • OESA Supplier and Affiliate Member companies • OEM data • Member survey data • Government resources • Other public sites Recent topics posted include: • Economics and employment • Energy • Finance and capital markets • International markets and trade • Product technologies • Public policy • Sales and production • Supply chain • Vehicle manufacturers

Kathy Reiss Director: Research and Industry Analysis

12 │ 2017 Association Update

Recent survey topics include: • Supply Chain Management • Strategic Risks in Mexico • Global Industry Outlook and Financial Planning • Production and Technology • The Talent Pool • The Impact of the New Administration OESA/HRI Automotive Tooling Barometer Created in partnership with Harbour Results, Inc., the Tooling Barometer provides an indicator of the current state of the automotive tooling industry.

Recent council surveys include: • Product Integrity • Capital Spending and Foreign Currency • Recall Readiness and Insurance • Cost Modeling • Data Privacy and Storage

Prepared by: Charles Chesbrough Executive Director: Research, Strategy and Senior Economist

1

The quarterly OESA Supplier Barometer offers the “pulse” of the industry on important supplier issues. Results are published on oesa.org and in Automotive News.

OESA generates council-requested surveys to identify industry best practices and address concerns that directly impact their functional areas.

Q1 2017

March 2017

OESA Automotive Supplier Barometer

OESA Council Surveys

OESA AUTOMOTIVE SUPPLIER BAROMETER

2017 Q1 Pulse Survey

Through the analysis of various industry surveys, OESA is able to capture and provide supplier sentiments and industry trends.

Each survey addresses unique operational issues, such as: • Tooling Capacity • Customer/Supplier Relations • Terms and Conditions

Focus on Production Planning and Trump Administration Policies

Join. Engage. Advance.

Surveys

1

OESA Publications

OESA North American OEM Production P.O. Terms and Conditions Comparative Analysis

OESA publications address various topics of critical interest to the supplier community. They provide valuable OESA and Butzel Long publish and maintain a comparative analysis of the terms and conditions of news and guidance on industry concerns and events, BMW, FCA, Ford, GM, Honda, Hyundai, Kia, Mercedes OEM updates, and supplier trends.

Benz, Nissan, Tesla, Toyota and VW. This analysis also (CQI-14) Consumer Centric Warranty Management features commentary from Butzel Long on commercial Guideline issues such as warranty, recall and product liability.

This guideline, jointly developed by OESA and the Automotive Industry Action Group (AIAG), promotes recent advancements in continuous warranty improvement processes. It provides a recommended warranty management program that instills a consumercentric approach to warranty management.

Directed Buy Agreement The "Directed Buy Agreement" is a fair and equitable model agreement and RASIC chart used to define responsibilities for parties involved in directed-buy and single-source arrangements.

OESA Comparative Analysis of North America OEM Warranty Programs The “Comparative Analysis of OEM Warranty Programs” examines OEM warranty management programs in North America and includes insightful commentary from Clark Hill PLC.

Member Communications Primarly through electronic media, OESA keeps members abreast of important events, issues and industry information.

Weekly Update The weekly update is an e-blast of the lastest OESA industry events, topics and news.

Quarterly Newsletter Developed in-house by OESA, Affiliate Members and guest columnists, the quarterly newsletter provides legislative and regulatory updates, industry news and analysis, and a calendar of OESA events. It also offers Affiliate Members the opportunity to share white papers, best practices and trends.

This document is the work of the OESA Warranty Management Council and is intended to help suppliers proactively manage the complexity of commercial warranty terms and customer programs.

Keeping automotive suppliers ahead of the curve More than 200 automotive suppliers choose us as their trusted legal counsel because:

Expertise

OESA is excited to attend this year’s CAR Management Briefing Seminars (MBS).

OESA was launched at MBS in 1998; since then, we have participated in this conference every year. This year, we will once again be among the many speakers and participants discussing the issues and important decisions needed to ensure a bright future for the automotive industry.

• Our automotive attorneys represent only suppliers, so there’s no inherent conflict that comes from representing OEMs and suppliers.

OEMs included in the analysis are BMW, Daimler, FCA, Ford, GM, Honda, Hyundai, Mercedes-Benz, Nissan, Toyota and VW.

• Our record of innovation and results spans supply chain terms & conditions, intellectual property, warranty & recalls, antitrust, M&A, litigation and more than 60 other areas of legal practice.

Just as the industry discusses issues from an overall perspective, the automotive supplier community must also discuss its most important challenges and determine the best direction to take during these uncertain times. This includes issues such as:

Leadership

NEWS

Legal Issues and Young Leadership Councils of the Original Equipment Supplier Association (OESA).

• The value we deliver to clients stems from our Midwest principles. We’re hard working, practical and put a focus on teamwork.

We will discuss these issues and more at the 18th OESA Annual Conference on Nov. 2, 2016, at COBO Center in Detroit. This year’s conference, “An Industry at a Crossroads,” will delve into key issues impacting the automotive industry from a supplier perspective. Reputable thought leaders, forecasters and economists will discuss key trends and share actionable insights designed to help suppliers stay at the forefront of the automotive industry.

• Alternative fee arrangements allow us to focus on 2016 Third results, not the ticking ofQuarter the clock.│ Edition 2

This year’s conference format will feature breakout sessions to allow for an in-depth look at:

Value

We’ll help you prepare for the curves ahead.

Visit WNJ.com or contact either co-chair of our Automotive Industry Group:

The “OESA Model Terms and Conditions” publication was developed by a team of suppliers to present a fair and balanced relationship model between buyers and sellers. This publication addresses difficult industry issues such as intellectual property, warranty, product liability and tooling. OESA encourages suppliers to work with their customers and suppliers to adopt these model terms and conditions throughout the supply chain.

Julie A. Fream

President and CEO

"OESA is delighted to continue our strong relationship with CAR. Their Management Briefing Seminars and OESA's Annual Conference foster the necessary dialogue to navigate the challenges in the automotive industry."

• Is the North American market headed for a downturn?

• How will the supplier industry be impacted by the results of the upcoming election?

• Who owns the intellectual property of automotive technology?

• We are co-founders of MICHauto.

Original Equipment Suppliers Association • We serve as legal counsel to the Sales Executive,

OESA Model Terms and Conditions

Voice

The Suppliers’

• Leading Through Uncertainty The panel discussion will focus on how to assess risk, approach it with confidence and plan for the unknown.

• Advanced Vehicle Technology - The Increasing Pace of Innovation The panel of experts will discuss the positive and negative implications of advanced technology on the industry.

thomas Manganello tmanganello@wnj.com +1.248.784.5007

Read AheadOfTheCurve.wnj.com The definitive law blog for navigating the automotive supply chain

Register Now for the 2016 OESA Annual Conference

• Tier 1 Purchasing Strategies and Opportunities Panelists from Tier 1 suppliers will outline their sourcing challenges and opportunities, and foster an open exchange of ideas to assist Tier 2 and 3 suppliers in growing their businesses.

Michael Brady mbrady@wnj.com +1.248.784.5032

2 │ OESA News - 2016 Third Quarter

A Better PArtnershiP® By providing discerning and proactive legal counsel, we build a better partnership with clients.

OESA is delighted to continue our strong relationship with CAR. Its Management Briefing Seminars and OESA’s Annual Conference both foster the necessary dialogue to navigate the challenges in the automotive industry. My team and I look forward to continuing to champion the business interests of the supplier community at each of these important events.

CAR Management Briefing Seminars

Aug. 1-4, 2016 Grand Traverse Resort and Spa Traverse City, MI

OESA Annual Conference Nov. 2, 2016 COBO Center Detroit, MI

As always, please feel free to contact me with comments and questions at 248.430.5963 and jfream@oesa.org.

OESA News - 2016 Third Quarter

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The Industry at a Crossroads November 2, 2016 │COBO Center │Detroit, Michigan To register, visit oesa.org

IN THIS ISSUE...

3 4 6

The Suppliers' Voice New Supplier Members New Affiliate Members

7 8 10

Legal Corner Supplier Barometer Upcoming Events

13 14 15

Inside OESA Annual Conference Calendar of Events

This edition is sponsored by

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GLOBAL ACTIVITIES OESA’s international relationships help member companies make global business decisions and become more knowledgeable of international requirements and trends.

OESA delivers on that focus through several initiatives:

Global Relationships OESA works with an expansive network of supplier associations and organizations throughout the world on areas of common concerns, such as intellectual property protection, commercial and trade issues, and global regulations.

Our international relationships include: • Automotive Component Manufacturers Association of India (ACMA) - India • Automotive Parts Manufacturers' Association (APMA) - Canada • European Association of Automotive Suppliers (CLEPA) - Europe • Industria Nacional de Autopartes A.C. (INA) - Mexico • Japan Auto Parts Industries Association (JAPIA) – Japan • Brazilian Association of Autoparts Manufacturers (Sindipeças) – Brazil

Events OESA provides supplier-focused global information and fosters interactive dialogue though international events.

Recent events include: • Mexico – The Myths, The Realities and The Opportunities • Canada/U.S. Automotive Dinner with APMA • Trilateral Meetings with CLEPA and JAPIA • Global Suppliers Associations Meeting (G7) Held in early 2017, the G7 was the first international meeting of the seven leading global motor vehicle parts supplier associations to find common goals and address global trends and concerns in motor vehicle parts manufacturing.

Delegations In early 2017, OESA co-hosted executives from India with ACMA. The visit included tours of various supplier facilities, OEM visits, the Canada/U.S. Automotive Dinner and a North American industry update. OESA is in similar talks with delegations from Brazil, Germany, and Israel.

Future Plans Dialogue on international issues continues as suppliers expand across the globe.

With guidance from member companies and association relationships, OESA remains at the forefront of global relations – now and in the future.

To learn more, contact OESA at 248.952.6401 or info@oesa.org.

14 │ 2017 Association Update

2016 FINANCIAL SUMMARY Uses of Revenue

Sources of Revenue

2%

Advertising/Publications/ Other

Council Dues

SG&A

12% OESA Events

Advocacy

20%

51%

15%

10% 22%

17%

Membership Dues

19% Shared MEMA Services

MEMA Events

Councils

26%

Events

6% Direct Member Services

2016 Revenue: $6.3 Million

6.3

$6,500 $6,000 $5,500 $5,000 U.S. Dollars

(in thousands)

5.0

5.6

5.6

‘14

‘15

5.3

$4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $0

‘12

‘13

‘16

Fiscal Year │ 15

ABOUT THE ASSOCIATION OESA's mission is to champion the business interests of automotive original equipment (OE) suppliers. Since 1998, the Association has been addressing issues of common concern and advocating on behalf of the supplier community throughout the supply chain and in Washington, D.C.

Motor & Equipment Manufacturers Association

OESA is one of four divisions of the Motor & Equipment Manufacturers Association (MEMA). All divisions are represented by MEMA’s advocacy and emerging technology expertise.

AASA represents automotive aftermarket suppliers that manufacture, distribute, retail and install vehicle parts, chemicals, equipment and accessories.

The MEMA network is one of the most powerful, respected, and effective voices for the supplier industry. It represents motor vehicle and mobility suppliers, parts manufacturers, and remanufacturers.

Automotive Aftermarket Suppliers Association

Heavy Duty Manufacturers Association HDMA represents OE and aftermarket parts suppliers that participate in class 4-8 commercial vehicles and/or 50+ hp off-highway vehicles.

Members operate in every segment of the heavy duty market—from components, service equipment and tires to chemicals, lighting and accessories.

MERA - The Remanufacturing Association MERA represents companies that view remanufacturing as a core competency. The MERA network of remanufacturers, suppliers, universities, and professional services firms promotes the economic, environmental and product performance benefits of manufactured goods.

Original Equipment Suppliers Association OESA represents original equipment (OE) suppliers that design, engineer and manufacture parts and technology for passenger cars and light-duty trucks; and the affiliate companies that support them.

16 │ 2017 Association Update

The Motor & Equipment Manufacturers Association (MEMA) and its four specialized divisions comprise the leading international trade association in the fast-changing mobility industry.

Representing organizations that manufacture and remanufacture components, technologies, and systems for use in passenger cars and heavy trucks, MEMA’s divisional members drive innovation in the Mobility Industry by combining high-tech capabilities in new vehicles –such as autonomous vehicles and vehicle connectivity—and the “nuts and bolts” of vehicle manufacturing.

871,000

AMERICANS

EMPLOYED IN 2015

734,000

AMERICANS

EMPLOYED IN 2012

2.9

%

OF JOBS

VEHICLE PARTS MANUFACTURING

REPRESENTS IN THE TOTAL U.S. EMPLOYMENT MARKET (UP 0.2 SHARE POINTS FROM 2012)

MOTOR VEHICLE PARTS MANUFACTURING

JOBS GREW NEARLY

19

% 2012 SINCE

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2016-17 OESA BOARD OF DIRECTORS Executive Committee OESA is guided by a dedicated Board of Directors comprised of senior supplier executives. The Board represents the diversity of the member base Ěś ranging from large, multi-national, public organizations to small, private supplier companies.

With a dual purpose of helping to set priorities for the Association and address common issues for the supplier community, members of the Board serve as an important resource for their peers in the industry.

Chairman of the Board Mike Mansuetti

Immediate Past Chair Samir Salman

Vice Chairman Michael E. Martini

President, Robert Bosch LLC

CEO, NA Region Continental Automotive Systems, Inc.

President, Consumer OE Bridgestone Americas

Vice Chairman Ramzi Hermiz

Officer Julie A. Fream

Officer Steve Handschuh

President and CEO Shiloh Industries, Inc.

President and CEO Original Equipment Suppliers Association

President and CEO Motor & Equipment Manufacturers Association

OESA Board members serve 4-year terms and are nominated by the Executive Committee.

18 │ 2017 Association Update

Directors

Oscar R. Albin

Paul Barnett

Executive President President INA, Industria Principal Nacional de Manufacturing Autopartes A.C.

John Dunn

Doug Grimm

James Bradbury

FranŇŤoise Colpron

President Group President Grand Rapids Valeo Controls Company North America LLC

Frederick Cartwright

David C. Dauch

Executive Director Clemson University International Center for Automotive Research (CU-ICAR)

Chairman and CEO Co-founder American Axle Aware Mobility, llc and Manufacturing, Inc.

CEO Coastal Automotive

Don Manvel

Chris Obey

Lon Offenbacher

Michael Rayhill

President and CEO President Inteva Products Jiffy-Tite Company, Inc.

Michael Haughey

Ken Hopkins

President and CEO Industry Advisor The Americas, Plastic Omnium Auto Inergy Division

President North American Stamping Group, LLC

President and CEO Chairman Neapco Holdings, AVL Americas LLC

President Flex Automotive

Michael Robinet

Wes Smith

Armando Tamez

James Verrier

Dan Sceli

Managing Director President and CEO Automotive Peterson American Advisory Services, Corporation IHS Markit

President and CEO CEO E&E Nemak Manufacturing Co., Inc.

Jim Teets

Jacqui Dedo

Paul Doyle

President and CEO President and CEO ADAC Automotive BorgWarner, Inc.

│ 19

20 │ 2017 Association Update

2017 SUPPLIER MEMBER COMPANIES A Berger A. Raymond Tinnerman Manufacturing A.P. Plasman, Inc. ABC Group ACAT Global Acument Global Technologies, Inc. ADAC Automotive Adient US LLC Advanced Technology Emission Solutions, Inc. Advantage Engineering Inc. ADVICS North America AGM Automotive, Inc. Agrati - CMG AGS Automotive Systems Air International Thermal Systems - NA AISIN Technical Center of America, Inc. AISIN World Corp. of America Akebono Brake Corporation All-Rite Spring Company Alpha Sintered Metals LLC ALPS Electric (North America), Inc. ALT America, Inc. Altair Engineering, Inc. American Axle & Manufacturing, Inc. (AAM) Anchor Danly Anchor Manufacturing Group, Inc. Ancor Anritsu Answer Precision Artiflex Manufacturing LLC Asahi Kasei Plastics North America, Inc. ATF, Inc. Aubin Industries, Inc. Auma Engineered Products, Inc. AutoForm Engineering USA, Inc. Autoliv ASP, Inc. AVL North America, Inc. Axalta Coating Systems BASF Corporation Behr Hella Thermocontrol, Inc. Bendix Commercial Vehicle Systems LLC Bollhoff, Inc BorgWarner Inc.

BOS Automotive Products Inc. Bosal International North America Bostik Bouckaert Industrial Textiles BOWMAN Precision Tooling Brembo North America Bridgestone Americas Tire Operations, LLC Bridgewater Interiors, LLC Brose North America, Inc. C. Thorrez Industries Cadillac Casting, Inc. Cadillac Products Automotive Company Cannon Automotive Solutions Carcoustics Tech Center North America, Inc. Carlex Glass Cascade Engineering Automotive Americas Celanese Centracore LLC Charter Automotive, LLC Chassix Chrysan Industries, Inc. Clarion Corporation of America Clips and Clamps Industries Coastal Automotive Continental Continental Structural Plastics, Inc. Cooper Standard Covestro LLC Crowne Group LLC CSM Manufacturing Dakkota Integrated Systems, LLC Dana Incorporated Danlaw, Inc. Datwyler Sealing Solutions Dayco Products, LLC Delfingen Inc. Delphi Corporation Demmer Corporation DENSO International America Detroit Thermal Systems LLC Dexter Stamping Company dlhBOWLES, Inc. Dow Automotive Systems

DSM Engineering Plastics DuPont Automotive Dura Automotive Systems, LLC DY America Inc. E & E Manufacturing Co., Inc. Eaton Eberspaecher Exhaust Technology - Americas EFI Automotive Eldor Automotive North America, Inc. ElringKlinger North America, Inc. Empire Electronics, Inc. EnovaPremier, LLC Excellence Optoelectronics Inc. (EOI) Faurecia North America FCC (North America) Federal-Mogul Holdings Corporation Feintool U.S. Operations, Inc. FIAMM Technologies LLC Ficosa North America Corporation Flex Flexfab, Inc. Flexitech, Inc. Freudenberg North America FTE Automotive USA, Inc. Futuris Automotive (US), Inc. Gates Corporation Gedia Michigan Gehring, L.P. Gemini Group General Cable Corporation Gentex Corporation Gentherm GG Cables and Wires USA, Inc. Ghafari, Inc. GHSP Gibbs Die Casting Gill Industries Gil-Mar Manufacturing Company GKN Driveline North America GKN Sinter Metals Gleason, S.A. De C.V. GNS America

Supplier Members as of April 2017 │ 21

2017 SUPPLIER MEMBER COMPANIES Godfrey and Wing, Inc. Grand Rapids Controls Company LLC Grote Industries, Inc. Grupo Antolin North America GST AutoLeather, Inc. Hanon Systems Hella Corporate Center USA, Inc. Henkel Corporation Henniges Automotive HFI LLC Hi-Lex Corporation Hilite Industries Hinduja Tech, Inc Hino Motors Manufacturing U.S.A, Inc. HIROTEC AMERICA, Inc. Hi-Tech Mold & Engineering, Inc. Honeywell Turbo Technologies Hoosier Gasket Corporation Horizon HRS Flow Huaiji Valve Engine USA, Inc. HUSCO International, Inc. Hutchinson FMS, Inc. Hutchinson Sealing Systems Ideal Shield, LLC IEE S.A. Iljin USA Corporation Illinois Tool Works (ITW) Inalfa Roof Systems, Inc. Inductoheat, Inc. Industria Ltd. INOAC USA, Inc. Interface Performance Materials, Inc. International Automotive Components (IAC) Inteva Products Irvin Automotive Products LLC ISGO Manufacturing JAC Products Janesville Acoustics JATCO USA, Inc. Jiffy-tite Company, Inc. Johnson Controls, Inc. Johnson Electric North America Johnson Matthey Inc, 22 │ 2017 Association Update

JTEKT North America KANEKA NORTH AMERICA LLC Kautex, Inc. Key Plastics LLC Kimura Foundry America Inc. KIRCHHOFF Van-Rob Inc. Kluber Lubrication NA LP Knovalent, Inc. Kongsberg Automotive, Inc. Kostal of America, Inc. KS Kolbenschmidt US, Inc. KSR International Lacks Enterprises, Inc. Lapeer Plating and Plastics Lauren Manufacturing Lear Corporation Leggett & Platt Automotive Group NA Leoni Wiring Systems Inc. LHP Engineering Solutions Linamar Corporation Link Engineering Company Litens Automotive Luebke & Vogt Corp.

Lumiant Corporation MacDermid, Inc. MacLean-Fogg Component Solutions Magna International Inc. MAHLE Industries, Incorporated MANN+HUMMEL USA, Inc. Mapvision USA LLC Marquardt Switches, Inc Martinrea International, Inc. Maxion Wheels A Division Ioshpe-Maxion MD Electronics Corporation Means Industries, Inc. Melling Engine Parts Meridian Lightweight Technologies, Inc. Metal Powder Products Metalsa Structural Products, Inc. Methode Electronics, Inc. Michelin North America, Inc. Michigan Spring and Stamping Midway Products Group Minth North America, Inc.

Mitsubishi Electric Automotive America, Inc. MIURA AMERICA CO, LTD. Mobis North America LLC Mobis North America LLC Modine Manufacturing Company Montaplast of North America, Inc. MPC, Inc. MPG MPG Casting Technologies Mubea NA Inc. N.S. International, LTD. Neapco, Inc. Nemak Nexteer Automotive NGK Spark Plugs (USA), Inc. NIDEC GPM North America Corporation NMB Technologies North American Stamping Group, LLC novation anaLYTICS NSK Americas NTN Bearing Corp. of America NYX, Inc. ON Semiconductor OpenText ANX P.J. Wallbank Springs, Inc. P3 North America, Inc. PACE Industries Panasonic Automotive Systems Company of America Paragon Technology Co. Ltd. Penn Aluminum International Peterson Spring Corporation Petoskey Plastics, Inc. Phillips Tube Group Piston Group Pittsburgh Glass Works LLC Plasmatreat USA, Inc. Plastic Omnium Auto Exterior Plastic Omnium Auto Inergy Division Plastomer Corporation Powers and Sons, LLC PPG Industries, Inc. Precision Resource Pridgeon & Clay Inc.

Principal Manufacturing Proper Group International Quality Metalcraft, Inc. Rassini International, Inc. Renaissance Manufacturing Group, LLC Rheinmetall Automotive Group Rhenus Automotive Systems GmbH Ricardo, Inc. Riken of America, Inc. RJG, Inc. Robert Bosch LLC Robovent Roechling Automotive NA LLC Rotor Clip Company Ryobi Die Casting USA, Inc. SABIC SAGE Automotive Interiors Saint-Gobain Sakthi Automotive Group USA, Inc. Satyam Venture Engineering Services Schaeffler Group USA, Inc. Schaller Corporation Schrader International, Inc. (Electronics Division) Seaway Bolt & Specials Corporation Select Industries Corporation Semblex Corporation Sensata Technologies, Inc. Shiloh Industries, Inc. SKF Small Parts, Inc. Sodecia North America SOMIC America, Inc. Southland Rubber, Inc. Spartan Light Metal Products SRG Global, Inc. SSI Technologies Stanley Engineered Fastening Stant USA Corporation Stoneridge STRATTEC Security Corporation Sumitomo Corporation of America Sumitomo Rubber North America Superior Industries, Inc. Tachi-S Engineering USA, Inc.

TAG Holdings Management, LLC TAJCO North America, Inc. Takata Corporation Techniplas Group, Inc. Teijin Advanced Composites America, Inc. Temel Gaskets Tenneco, Inc. THB International The Goodyear Tire & Rubber Company The Narmco Group - Prince Metal Products The Timken Company The Woodbridge Group Thomas Magnete USA, LLC Thyssenkrupp Components Technologies, N.A. TI Automotive TimkenSteel TMD Sequencing, Inc. TomTom North America, Inc Toyobo USA Inc. Toyoda Gosei North America Corporation Toyota Boshoku America Toyota Tsusho America TREMEC Corporation Trensor Trico Products Corporation TriMotive TS Tech North America Inc. TWB Co., LLC Umicore Autocat USA Inc. Unique Fabricating, Inc. United Gasket Corporation Valeo North America, Inc Valiant Machine & Tool Varroc Lighting Systems Vector CANtech, Inc. Vibracoustic Vickers Engineering, Inc. Viking Plastics Visteon Corporation Walker Die Casting, Inc. Waupaca Foundry, Inc. Webasto - Edscha Cabrio USA, Inc. Webasto Roof Systems, Inc. Wescast Industries Inc.

Woco Tech USA Inc. Wolverine Advanced Materials Yanfeng Automotive Interiors YAPP USA Automotive Systems, Inc. Yasunaga Corp. America Yazaki North America, Inc. ZD Sealing Parts USA, Inc. ZF North America, Inc.

Supplier Members as of April 2017

OESA Membership Join more than 450 member organizations that are represented by the leading association in the North American automotive supplier sector.

Benefits include: Industry events: OESA industry events offer supplier-centric insight by authorities in the industry.

Town halls: OESA’s town hall meetings offer unparalleled access to OEM decisionmakers in purchasing, engineering and the supply chain.

Peer group councils: OESA councils address issues of common interest for almost every functional area in a supplier organization.

Advocacy: MEMA’s government affairs team represents members of OESA on federal and state issues.

Member Resources: Through industry analysis, forecasts, white papers and publications, OESA member resources provide members access to exclusive information.

Industry Communications: OESA keeps the industry informed with a quarterly newsletter, weekly updates and event alerts.

To learn more, contact OESA at 248.952.6401 or info@oesa.org. │ 23

24 │ 2017 Association Update

2017 AFFILIATE MEMBER COMPANIES A.T. Kearney, Inc. Abbott Nicholson PC Advanced Purchasing Dynamics Alabama Automotive Manufacturers Association Alderney Advisors, LLC AlixPartners LLP Amherst Partners LLC Antea Group Aon Risk Solutions Arthur J. Gallagher & Company Automotive Parts Manufacturers Assoication of Canada Avnet Baker Tilly Bank of America Merrill Lynch Barnes & Thornburg LLP BMO Harris Bank | BMO Financial Group Boston Consulting Group, Inc. (BCG) Brooks Wilkins Sharkey & Turco PLLC Butzel Long CBRE Chambliss, Bahner & Stophel PC Citizens Bank, N.A. Clark Hill PLC Conway MacKenzie, Inc. Costa Rican Investment Promotion Agency CINDE Crowe Horwath LLP Dassault Systemes Dawda Mann Mulcahy & Sadler PLC Deloitte Development Dimensions International (DDI) Dickinson Wright PLLC Donnelly Penman and Partners DTE Energy Dykema Gossett PLLC El Grande Group Epicor Software Corporation EY FEV North America, Inc Fifth Third Bank FirstMerit Bank Foley & Lardner LLP Formel D USA, Inc.

Frost Brown Todd LLC The Cronin Law Firm, PLLC GE Capital The Entrada Group GENPACT, LLC The Offshore Group GRUPO PRODENSA Ubiquiti, Inc. Howard & Howard Attorneys UK Trade & Investment IBM Global Business Services Up2Go International, LLC IHS Markit Warner Norcross & Judd LLP Industria Nacional de Autopartes A.C. Willis Towers Watson IQMS Manufacturing ERP Affiliate Members as of April 2017 ITC Holdings Corporation J.D. Power Thank you to our 2016 Partners: Japan External Trade Organization KERR, RUSSELL and WEBER PLC ADAC Automotive Foley & Lardner LLP Kotz Sangster Wysocki P.C. AIAG Harbour Results, Inc. KPMG LLP Akebono Brake HRS Flow Corporation IHS Markit Lean Learning Center AlixPartners LLP Incoe Corporation LMC Automotive AutoBeat Group LLC Inteva Products M1 Concourse Bank of America IQMS Manufacturing Marketing Associates Merrill Lynch ERP Marsh BMO Harris Bank J.D. Power Marsh & McLennan Agency LLC Robert Bosch LLC KPMG LLP McDonald Hopkins PLLC Brose North America LMC Automotive Baker Tilly Plastic Omnium Auto McKinsey & Company, Inc. Butzel Long Inergy Division Mercer Brooks Wilkins Macedonian Michigan Economic Development Corporation Sharkey & Turco PLLC Government - Free Miller Canfield Center for Automotive Zones Authority Miller Johnson Research (CAR) Plante Moran PLLC O'Keefe Clark Hill PLC PwC Oliver Wyman Consulting GMBH Continental Shiloh Industries Inc. Patina Solutions Crowe Horwath LLP SRG Global, Inc. Defense Automotive Stant USA Plante Moran PLLC Technologies Corporation Plex Systems Consortium Steel Market Prospect Silicon Valley Dawda Mann Mulcahy Development Institute PwC & Sadler PLC (SMDI) QAD, Inc. Deloitte Tebis America, Inc. QLIK Denso International The Offshore Group Rehmann America Up2Go International DSM Engineering Valeo North America Roland Berger Strategy Consultants LLC Plastics Warner Norcross & RSM Eisbrenner Public Judd LLP Sales Coaches' Corner Relations Willis Towers Watson Saphran Solutions The Entrada Group Yazaki North America Spencer Butcher Group EY Sterne Kessler Goldstein & Fox PLLC Excellence Optoelectronics Inc. Stout Risius Ross, Inc. │ 25

OESA STAFF

Julie A. Fream

President and CEO 248.430.5963 jfream@oesa.org

At the heart of OESA are the people that make things happen.

The team is committed to supporting OESA members and championing the interests of the supplier community.

To learn more about OESA, contact any member of the team or visit oesa.org.

Alia Bazzi

Karen Bohannon

Annie Felicelli

Steve Horaney

248.430.5958 abazzi@oesa.org

248.430.5965 248.430.5964 kbohannon@oesa.org abuford@oesa.org

248.430.5959 afelicelli@oesa.org

248.430.5969 shoraney@oesa.org

Rosalind Jackson

David Johnson

Ginger Juncker

Jeff Laskowski

Keiyania Mann

248.430.5957 rjackson@oesa.org

248.430.5968 djohnson@oesa.org

248.430.5953 gjuncker@oesa.org

248.430.5950 jlaskowski@oesa.org

248.430.5952 kmann@oesa.org

Website and Graphic Designer

Executive Assistant

Manager, Administration and On-site Facilities

Director, Events and Member Programs

April Buford

Senior Director, Communications

Executive Director, Councils and Member Programs

Administrator, Member Support and Services

Manager, Communications

Vice President, Membership and Sales

Manager, Council Planning and Communications

MEMA TEAM

Brenna McCann

Kathy Reiss

Drew Rhodes

Brian Daugherty

248.430.5970 bmccann@oesa.org

248.430.5960 kreiss@oesa.org

248.430.5961 drhodes@oesa.org

248.430.5966 202.312.9246 bdaugherty@mema.org awilson@mema.org

Senior Manager, Membership and Sales

26 │ 2017 Association Update

Director, Research and Industry Analysis

Chief Technology Manager, Business Development Officer, MEMA and Event Logistics

Ann Wilson

Senior Vice President, Government Affairs, MEMA

Big ideas. Smarter cars.

What’s next? What is the future of automotive safety, comfort and convenience? How can we improve performance and efficiency?

At Continental, we’re always thinking down the road.

Join our team and let your ideas shape the future.

One of Forbes’ 2016 Best Employers

www.continental-automotive.com

│ 27

Championing the business interests of automotive original equipment suppliers since 1998.

Original Equipment Suppliers Association 248.952.6401│oesa.org│info@oesa.org 25925 Telegraph Rd., Ste. 350│Southfield, MI 48033-2553 Follow us on