OESA News 2017 Third Quarter, Edition 2

NEWS

Original Equipment Suppliers Association

2017 Third Quarter │ Edition 2

IN THIS ISSUE...

3 4 6

The Suppliers' Voice 2017 OESA Annual Conference Industry Outlook

8 9 10

Legislative Update Legal Corner New Technology

This edition is sponsored by

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OESA Membership OESA Events Calendar of Events

AGILE. RESPONSIVE. POWERFUL. ROADTESTED. We get the automotive industry. That’s why multinational Fortune 500 companies to family-owned suppliers look to Warner Norcross for counsel. Through strategic guidance, we maneuver relationships between parts suppliers and vehicle manufacturers, automotive regulators and the emerging autonomous vehicle market. For more information about our experience and expertise in the fast and furious automotive market, visit wnj.com.

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A BETTER PARTNERSHIP‰

Voice

The Suppliers’

Julie A. Fream

President and CEO

One Strong Relationship; Two Cornerstone Events CAR’s MBS and the OESA Annual Conference are exceptional industry forums

The automotive industry is evolving more rapidly and expansively now than any other time in the past 100 years – and the momentum continues. Connected vehicles, automated driving, shorter design cycles, vehicle innovation, the need for new talent, ride-sharing and ongoing government discussions continue to change the fundamentals of the industry.

It is in this new era that we support the Center for Automotive Research’s Management Briefing Seminars (MBS) this week and host our 2017 Annual Conference: The Industry’s New Landscape on November 13, 2017.

OESA enjoys a strong relationship with CAR, as both organizations are committed to addressing industry issues through research, event programming and networking. CAR’s MBS offers an exceptional forum to learn about the future of the global automotive industry. OESA is delighted to have our own Mike Jackson, Executive Director, Strategy and Research, on the agenda as a panelist for the "The North American Market: Sales and Production Footprint," – an MBS favorite.

OESA’s Annual Conference also offers a thought-provoking agenda – with the supplier perspective in mind. OESA will host some of the industry’s key decision makers and thought leaders as they share key trends, explore the outlook of the industry, address the impact of the new U.S. administration, and provide relevant information for suppliers to thrive in the industry’s new landscape.

Confirmed speakers include:

Steve Kiefer, Senior Vice President, Global Purchasing and Supply Chain, General Motors

Mahesh Kodumudi, Executive Vice President, Purchasing, Volkswagen Group of America

Sachin Lawande, President and CEO, Visteon

Sherif Marakby, Vice President, Autonomous Vehicles & Electrification, Ford Motor Company

Robert S. “Steve” Miller, President, Chief Executive Officer and Director, IAC

Dr. G. Mustafa Mohatarem, Chief Economist, General Motors

Ziad “Z” Ojakli, Group Vice President of Government & Community Relations, Ford Motor Company

Michael Robinet, Managing Director, Automotive Advisory Services, IHS Markit

RJ Scaringe, CEO, Rivian Automotive

Susan Smyth, Chief Scientist, Global Manufacturing, General Motors

Shinichi Yasui, President, Toyota Engineering & Manufacturing North America

Bob Young, Vice President, Purchasing, Toyota Engineering & Manufacturing North America

John Murphy, Managing Director & Lead US Auto Analyst, Bank of America Merrill Lynch

I look forward to seeing you at MBS and hope you will join us at the 2017 OESA Annual Conference.

As always, please feel free to contact me at 248.430.5963 or jfream@oesa.org.

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2017 OESA ANNUAL CONFERENCE

2017 ANNUAL CONFERENCE THE INDUSTRY’S NEW LANDSCAPE November 13, 2017 • Suburban Collection Showplace, Novi, MI

Agenda Highlights KEYNOTE PRESENTATIONS: Autonomy & Electrification: Driving Ford’s Future Sherif Marakby, Vice President, Autonomous Vehicles & Electrification, Ford Motor Company The Automotive Influence in Washington, D.C. Ziad “Z” Ojakli, Group Vice President of Government & Community Relations, Ford Motor Company Ann Wilson, Senior Vice President, Government Affairs, MEMA The Future of Automotive: A New OEM’s Perspective RJ Scaringe, CEO, Rivian Automotive Toyota: Perspectives from the President Shinichi Yasui, President, Toyota Engineering & Manufacturing North America BREAKOUT SESSIONS AND PANEL DISCUSSIONS: Preparing for the New Mobility Landscape Sachin Lawande, President and CEO, Visteon Steve Miller, President, Chief Executive Officer and Director, IAC Cycle Dynamics: The Industry Outlook Panel Dr. G. Mustafa Mohatarem, Chief Economist, General Motors John Murphy, Managing Director & Lead US Auto Analyst, Bank of America Merrill Lynch Michael Robinet, Managing Director, Automotive Advisory Services, IHS Markit Next Generation OEM/Supplier Relationships Steve Kiefer, Senior Vice President, Global Purchasing and Supply Chain, General Motors Mahesh Kodumudi, Executive Vice President, Purchasing, Volkswagen Group of America Bob Young, Vice President, Purchasing, Toyota Engineering & Manufacturing North America Advanced Vehicle Technology: Separating the Reality from the Hype Susan Smyth, Chief Scientist, Global Manufacturing, General Motors

For more information and to register to attend, visit oesa.org or call 248.952-6401.

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2017 OESA ANNUAL CONFERENCE

Thank you to our 2017 Annual Conference Sponsors.

PRESENTING SPONSORS

PREMIER SPONSORS

PRINCIPAL SPONSORS

CONFERENCE EXHIBITORS

SUPPORTING SPONSORS

Sponsorship opportunities are still available.

Contact Drew Rhodes at drhodes@oesa.org or 248.430-5961.

OESA News - 2017 Third Quarter

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INDUSTRY OUTLOOK

DRIVING MARKET OPPORTUNITIES WITHIN THE LUXURY SECTOR Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

As the demand of luxury brand entries in the U.S. and beyond continues to outpace total market sales, this segment represents a unique opportunity for suppliers. Through June 2017, U.S. light vehicles sales slipped 2.1 percent to 8.45 million units. During the same period, luxury brand sales in the U.S. grew by 2.3 percent to 1.0 million units, or a 12 percent share.

Despite considerable policy uncertainty in Washington, D.C., the market continues to experience strong fundamentals including historically low interest rates, tight employment markets, low energy prices, a recordhigh stock market and sharply higher home values – all of which enhance the wealth effect and bolster consumer sentiment.

This is important as luxury brands typically command a meaningfully higher price point within respective segments, offering additional profit potential.

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INDUSTRY OUTLOOK

Suppliers also benefit from increasing global luxury segment demand as automakers leverage their U.S. production to export more vehicles.

BMW and Mercedes-Benz now export an average 70 percent of their annual output of their wildly popular, U.S. manufactured sport utility.

A key factor for luxury brand supremacy is for an OEM to have sufficient coverage across all product categories.

The dramatic shift in consumer preferences toward sport utilities has resulted in declining sales for luxury brands with incomplete product portfolios. In evaluating sales of the top U.S. luxury brands through June 2017, the dramatic increase in sport utility demand helped push emerging brands higher as newer entries, including the Jaguar F-Pace, the Tesla Model X and Infiniti QX30, posted sizable gains.

At the same time, more established manufacturers with stronger passenger car portfolios experience declining sales.

The growth of luxury brands offers unique opportunities for suppliers to be affiliated with and to contribute to the prestige, refinement and performance of vehicles that encompass opulence, exclusivity, and aspirational appeal.

Supplying the needs of luxury customers highlights an organization’s ability to meet rigorous quality parameters and may open the door to new opportunities across a wider range of prospective customers.

OESA News - 2017 Third Quarter

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LEGISLATIVE UPDATE

WASHINGTON, D.C. UPDATE

BAT, NAFTA, AND THE IMPACT ON OESA MEMBERS Ann Wilson Senior Vice President, Government Affairs │MEMA 202.312.9246 │ awilson@mema.org This year, our industry has faced significant public policy headwinds with a proposed Border Adjustment Tax (BAT) and renegotiation of the North American Free Trade Agreement (NAFTA). MEMA and OESA continue to advocate for the supplier industry in D.C. and the states, and we encourage members to amplify our voice by engaging with their representatives while they are home in August.

Since January, MEMA and OESA have mobilized our resources to protect our members’ business interests: • MEMA and OESA contracted with the Boston Consulting Group (BCG) to define how a BAT and changes to NAFTA will impact the supplier industry.

An imposition of the BAT and withdrawing from NAFTA would add thousands of dollars to production costs per vehicle and could impact up to 50,000 supplier jobs in the U.S. • OESA holds regularly scheduled calls with senior leadership of the membership to provide updates and seek input.

• Your MEMA DC office works closely with members in working groups on tax reform and trade policy.

• MEMA has held numerous meeting with the Trump administration, including Secretary Ross, senior staff of the United States Trade Representative (USTR), and the President’s National Economic Council.

• MEMA is participating in a coalition opposing the BAT and has actively advocated against a 20% BAT. How can OESA members engage?

MEMA and OESA urges all members to communicate directly with their elected representatives during the August recess. The industry is facing massive changes and there is much at stake for supplier companies and the industry. The Supplier voice is critical.

Tax Reform and the BAT President Trump and the Republican Congress have made passage of tax reform legislation a priority in 2017. One of the most controversial aspects of tax reform is in inclusion of BAT.

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As tax legislation is considered, MEMA has filed comments and continues to lobby heavily against a 20 percent BAT. Opposition to the BAT continues to grow but it is not clear what will be included in any future tax reform.

• In September, we expect the administration and Congress to release a proposed tax plan. We urge all members to continue to mount pressure opposing a 20 percent BAT. NAFTA Renegotiations During the campaign, President Trump promised to either withdraw from NAFTA or substantially renegotiate the agreement. In May, the President notified Congress of his intention to renegotiate the agreement and formal negotiations will begin in August.

MEMA and OESA filed a statement outlining the industry’s negotiating principles and has been in close communications with the U.S. officials responsible for NAFTA. We expect the negotiating process to last at least throughout 2017.

• We urge all members to continue to tell their elected representatives about the importance of a strong North American supply chain.

For more information and for help in engaging with members of Congress in district or in D.C., contact Ann Wilson.

LEGAL CORNER

DOES A TERMINATION FOR CONVENIENCE CLAUSE REALLY MEAN WHAT IT SAYS? Michael Brady Partner │Warner Norcross & Judd LLP Mbrady@wnj.com │ 1.248.784.5032 The standard purchasing terms and conditions of essentially every Original Equipment Manufacturer and Tier One supplier contains a termination for “convenience” provision.

This clause states, in sum, that the buyer can terminate the contract at any time, at its option and in its sole discretion. These clauses typically state that if the customer chooses to terminate, it will only be responsible for finished products already ordered, usable work-in-process and other discrete costs. This can seem harsh and potentially unjust, particularly when the supplier was anticipating a long-term agreement, agreed to per-part pricing to reflect that understanding and has sunk hard costs into its manufacturing facility. But if the supplier takes a deeper look at the contract terms and conditions with its customer, more than likely it will find this provision included in the contract.

Despite the straight-forward language of a termination for convenience provision – that the buyer can terminate for any reason or no reason at all – this can run counter to other aspects of the law governing supply agreements. This is where the law can get a bit muddled.

Many supply agreements are set up as “requirements” contracts. These contracts are recognized as enforceable under the Uniform Commercial Code (UCC) even though there is not a set quantity that the buyer must purchase.

The UCC recognizes the practical reality – particularly in the automotive world – that a buyer may not always know how much product to order. So under a requirements contract, the buyer commits to a per-part price to purchase all (or a percentage) of its requirements for that part from the seller. However, while the buyer has flexibility to only order what it needs, it must still order products in good faith.

This means that the buyer must operate and conduct its business “according to commercial standard of fair dealing ...” (UCC 2-306, Comment 2). For example, “a shut-down by a requirements buyer for lack of orders might be permissible when a shut-down merely to curtail losses would not.” Id. As some courts have observed, to satisfy this good faith duty, a buyer cannot simply have second thoughts about the terms of the contract and stop ordering products to get out of it. But, if the buyer has a legitimate business reason for eliminating its requirements, as opposed to a desire to avoid its contract, the buyer acts in good faith. See Empire Gas Corp. v. American Bakeries, 840 F.2d 1333 (7th Cir. 1988).

But, what if a requirements contract also contains a termination for convenience clause, and the buyer simply decides to terminate the contract? Is that decision a failure by the buyer to order products in good faith, or merely one party utilizing an agreed upon provision to end the contract? The law is unclear, with courts answering this question differently.

In Metal One America, Inc. v. Center Manufacturing., Inc., 2005 WL 1657128 (W.D. MI 2005), the court considered whether Center’s termination for convenience of a requirements contract constituted a breach. The court found that it did and concluded that Center chose to end the contract and stopped ordering parts, not for lack of orders but because Center was attempting to “curtail losses.” In the court’s view, this constituted a bad faith breach of the contract. The court was also swayed by the fact that the parties had an established course of performance. Center regularly placed orders for products and then abruptly terminated after placing its most recent order.

In contrast, the court in Q.C. Onics Ventures, LP v.

Johnson Controls, Inc., 2006 WL 1722365 (N.D. Ind. 2006) (applying Michigan law) took the opposite view. In that case, JCI was sued because it terminated a requirements contract, pursuant to a clear termination for convenience clause. The plaintiff argued that because the contract was a requirements contract, JCI could not terminate for convenience, and was required to exercise good faith when determining its requirements. The court flatly rejected this argument and concluded that the obligation to buy in good faith on one hand, and the contractually agreed upon right allowing JCI to terminate for convenience on the other, were two separate concepts. JCI was not claiming in bad faith that its requirements were now zero, but was instead relying on the termination clause for its decision. JCI was required to order its requirements in good faith while the contract was in effect, but it could properly end the contract for any reason.

In reaching its decision, the court rejected the analysis in Metal One America.

There have been few other decisions on this topic. So where does that leave suppliers? As the Q.C. Onics Ventures case recognized, it is difficult to conclude that a clear termination for convenience provision means something other than exactly what it says. A termination done the right way – with payment of costs and appropriate advance notice, none of which was done in Metal One America – will be much more defensible in court.

But each situation is very fact specific. When deciding whether to terminate a supply agreement or face a situation where your supplier or customer is threatening to end the contract, it is prudent to examine the contract documents very carefully before making any decisions. Do you have a “requirements” contract? Are applicable terms and conditions properly incorporated into the contract and, if so, what do they say regarding termination? What was the parties’ course of performance and how will that impact the interpretation of the contract? The answers to these questions will dictate how to proceed in a way that makes the most business sense while complying with your legal obligations.

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NEW TECHNOLOGY

NEW TECHNOLOGY

BRINGS EXCITEMENT/CHALLENGES TO AUTO INDUSTRY Brian Daugherty Chief Technology Officer │MEMA 248.430.5966 │ bdaugherty@mema.org

We are fortunate to live in exciting times – especially regarding new vehicle technology. The Tesla Model 3 “launch” (with initial sales only to employees) is now upon us and many questions will be answered over the next 12 to 18 months: Will the 325,000 potential customers that put down $1,000 deposits take delivery of their vehicles or change their minds? Can Tesla ramp up to efficiently produce a high-quality, mass market vehicle and make a profit? Will sales of the Model S and X decline as a result? Interestingly, the Tesla Fremont plant currently uses approximately seven times the employees per vehicle produced than the previous Toyota/GM operation at the same site.

Automated vehicle (AV) technology discussions have dominated industry press coverage for several years and now the hype has reached a fever pitch. This area will continue to be exciting as the next generation of Advanced Driver Awareness Systems (ADAS) and SAE Level 2 automated technology becomes more commonplace. However, we have seen many OEM statements regarding the timing and capabilities of automated vehicles get misinterpreted or exaggerated.

Unfortunately, as higher levels of automation continue to progress, the difficulty curve is not even close to linear. Reality will start to creep into the discussion as the press realizes that true SAE Level 5, all-weather, go anywhere, driverless vehicles are still quite a long way in the future. In the meantime, public trials of Level 4 vehicles (cars, SUVs and buses) with limited operational environments will continue. The U.S. Congress is currently drafting legislation to govern testing and production requirements for AVs to avoid a patchwork of conflicting state laws, and MEMA is actively involved in these critical efforts.

Additionally, the new administration is reviewing the recently issued Final Determination of the Mid-Term Evaluation of GHG standards for MY 2022-2025 lightduty vehicles. As a result, changes in the Corporate Average Fuel Economy (CAFE) program could significantly impact the industry’s ongoing powertrain electrification and hybridization efforts. On a related 10 │ OESA News - 2017 Third Quarter

note, MEMA is actively working to allow vehicle suppliers to directly submit fuel-saving advanced technologies for evaluation and approval as off-cycle CAFE credits. These off-cycle credit technologies could then be used by multiple OEMs. We are still awaiting the Trump Administration’s view regarding NHTSA’s January Vehicle-toVehicle Communication (V2V) Notice of Proposed Rulemaking. The NHTSA proposal would require 5.9 GHz Dedicated Short Range Communications (DSRC) technology on all light vehicles sold in the U.S. and is an important step forward in advancing vehicle safety.

The DSRC technology enables low-cost, real-time collision warnings and integrates with existing invehicle sensors to provide improved ADAS features.

Unfortunately, the 5.9 GHz spectrum band used for this technology is also coveted by Wi-Fi providers, which has led to a battle at the FCC between faster movie downloads and vehicle safety. Any sharing of this spectrum will lead to interference with V2V messages and therefore reduce vehicle safety. MEMA continues to advocate that the FCC reserve the current 5.9 GHz Vehicle Safety Spectrum bandwidth only for V2V communications.

OESA MEMBERSHIP

WELCOME NEW OESA MEMBERS

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

CU-ICAR is an innovation campus, located in Greenville, South Carolina, in the heart of the southeastern U.S. auto industry. We are an enterprise that develops talent for the industry (Graduate-level program in Automotive Engineering), conducts cutting-edge research, and provides land and office space for the growing industry.

5 Research Drive Greenville, SC 29607-5257 (864) 283-7102 www.cuicar.com

Member Rep: Frederick M. Cartwright, Executive Director

Decatur Mold Tool & Engineering, Inc. 3330 N. State Road 7 North Vernon, IN 47265 wwww.decaturmold.com

In 1966, Decatur Mold was a five-man shop with a 2,400-square foot facility, an excellent work ethic and a desire to provide the best service and quality the industry had to offer. That commitment has proven successful and now Decatur Mold has grown to a world – class facility, with 100+ employees and more than 87,000 square feet. Decatur Mold continues to incorporate state-of-the-art equipment and technology from design to finished mold. Its facilities operate 24/7. Technology and concepts have changed since 1966, but commitment to customers, quality and employees has not.

Member Rep: Darren Borgman, Program Manager

Kitagawa Mexico S.A. de C.V.

Circuito Progreso No. 102, Parque Industrial Logística Automotriz (PILA) Aguascalientes, Ags. CP20340 kiw.com.mx (52) 449-917-8825 ext 103

Kitagawa Iron Works Ltd (KIW) is a Japanese mixed engineering group founded 99 years ago and was listed on the Tokyo stock exchange 76 years ago. Its products cover machine tool accessories, building materials, a foundry and construction equipment.

Kitagawa Mexico was founded in 2012. The KIW philosophy is shared by its three casting plants (Thailand, Japan & Mexico), to provide the best products with high quality to all customers, KIW's goal is to become a leading company and trusted by customers for establishing its integrated production system from casting through machining.

Member Rep: Norihito Matsuba, President OESA News - 2017 Third Quarter

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OESA MEMBERSHIP WELCOME NEW OESA MEMBERS (Continued from page 11)

Lauren Manufacturing

2228 Reiser Ave. SE New Philidelphia, OH 44663 (330) 339-3373 www.lauren.com Member Rep: Ryan Tarbert, Account Manager

LHP Engineering Solutions 1888 Poshard Dr. Columbus, IN 47203 (812) 373-0880 www.lhpes.com

Member Rep: Ronan Harkin, Vice President, Sales

MS Precision Components, LLC

1101 Highview Drive Webberville, MI 48892 (517) 223-1059 www.ms-powertrain.com Member Rep: Frank Jedele, President

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Problem Solvers. Solution providers.

The versatility of Lauren’s rubber and plastic manufacturing capabilities sets it apart.

It develops custom solutions through creative compounding, advanced design and process engineering.

With facilities in Ohio and Michigan, Lauren Manufacturing's focus is on solving problems for leading OEMs, designers and builders. It accomplishes this by engineering both extruded and molded parts along with a wide range of value-added processes.

The desire for electrification and automation of automobiles, along with functional safety and cyber security standards, creates a need for streamlined, high-performing engineering processes and technologies. LHP provides engineering services and technology integration, turning engineering operations into the powerful core of your business.

LHP’s broad knowledge enables it to assist customers throughout every step of the V-development Model. LHP has five distinct, but complementary, deployment strategies for supporting customers.

Please contact LHP at, www.lhpes.com, to learn more.

MS Precision Components LLC. is a strategic business unit of MS Industrie AG with production sites in Trossingen-Schura Germany and Webberville, MI., supplying customized solutions for the entire powertrain for over 30 years. MS Precision Components is both a full development partner and a reliable manufacturing specialist for complex systems and precision components in powertrain for renowned automobile and commercial vehicle manufacturers as well as for the world’s leading engine and transmission manufacturers.

Since 2006, as a single-source supplier, MS Precision Components has been responsible for the complete valve train assembly on the new Detroit Diesel DD13, DD15 and DD16 heavy-duty commercial engines.

OESA MEMBERSHIP

Ryobi Die Casting

17199 N. Laurel Park Drive, Suite 309 Livonia, MI 48152 (517) 375-5756 www.ryobidiecasting.com

Ryobi Die Casting is leading the industry in the development & manufacture of High-Pressure Aluminum Die Castings. As a tier one supplier to the auto industry, it is dedicated to providing our customers with only the highest quality castings, and solutions. Products include Transmission Cases, Housings, Engine, and Structural components. Ryobi castings can be found in nearly all of the major auto manufacturers vehicles.

Member Rep: John Allmand, Sales Manager

SCSI

8515 N University St Peoria IL 61615 scsinternational.com (309) 360-5014 Member Rep: Tony Comella, Account Executive - Automotive

SRI International

333 Ravenswood Avenue Menlow Park, CA 94025 (650) 859-3422 www.sri.com Member Rep: Robert Pearlstein, Vice President, Corporate and International Business Development

Supply Chain Services International (SCSI), headquartered in Peoria, IL, provides tailored and turnkey quality inspection, reactive containment and logistics solutions throughout the supply chain for some of the most successful OEMs and suppliers in the world. Currently operational in North American, Europe, China, Vietnam and Thailand, we provide services in our own global facilities, at your facilities, or at your customers’ facilities. SCSI assists with your need for additional expertise, capability, staffing, gaging, equipment or state of the art systems and processes. Visit the SCSI website at www.SCSInternational.com to see the extent of its offering.

From basic research to advanced systems and product development, the Advanced Technology and Systems Division manages complex projects for government and commercial clients. The division advances the state of the art in diverse areas such as chemistry, physics, and materials science; geospace studies and space and marine technology; surveillance and remote sensing; applied optics and secure circuits; and robotics, medical devices, and nanotechnology.

Together its researchers create world-changing science, technologies, and systems. The division's expert development and systems integration capabilities ensure maximum impact when technology solutions are implemented.

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OESA MEMBERSHIP WELCOME NEW OESA MEMBERS (Continued from page 13)

Thomas Magnete

PO Box 128 Lake Orion, MI 48361 (262) 781-2900 www.thomas-magnete.com/en Member Rep: Adam Trella, Sales Director - Automotive

As a supplier of intuitively-designed and developed solenoids, pumps, and valves, Thomas Magnete uses its innovative strength, years of experience, and extensive automotive know-how to develop and produce solutions in response to specific customer needs. Some particularly economic applications include the following products of its current portfolio: metering pumps for exhaust gas after-treatment, auxiliary heaters, proportional solenoids for camshaft phasing, proportional valves for various uses in vehicle transmission systems and off-highway hydraulic systems, and valves for variable-flow oil pumps.

Thomas Magnete products create dynamism and efficiency in engines and transmission systems, and ensures optimal conditions for vehicle exhaust fumes and exact, reliable control of mobile work machinery. It guarantees high performance, high precision, and a high degree of reliability in all application areas.

Valens

A New Era for In-vehicle Connectivity

Headquarters: Hanagar 8, Hod Hasharon 4501309, Israel (972) 54-4775970 www.valens.com

Valens' HDBaseT Automotive combines the best of alternative existing technologies into one, simple solution for in-vehicle connectivity to address the needs of today’s and tomorrow’s connected cars.

The HDBaseT Automotive 5Play feature set revolutionizes in-vehicle connectivity with the convergence of high throughput audio and video, Ethernet, USB, controls and power over a single unshielded twisted pair cable, with near-zero latency.

1459 18th Street #230 San Francisco, CA 94107

Member Rep: Micha Risling, senior vice president, marketing, business development and head of automotive business unit

WardsAuto Intelligence

3000 Town Center, Suite 2750 Southfield, MI 48075 (248) 799-2642 intelligence.wardsauto.com Member Rep: John Sousanis, Managing Director

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For nearly a century, WardsAuto has been the industry provider of in-depth automotive insights, data and analysis.

Today WardsAuto Intelligence analysts and industry researchers offer global and regional forecasting, historical data, trend analysis and industry insight through our online website and databases, Outlook Conferences and special reports – all with a keen focus on reliable, responsive customer service.

Learn how WardsAuto can meet the need for automotive information. Contact WardsAuto today.

OESA MEMBERSHIP

We Predict

Ethos, Kings Road Swansea, U.K SA1 8AS (248) 385-8647 http://www.wepredict.co.uk/ Member Rep: Renee Stephens, Vice President, Automotive

Since 2009, We Predict, through innovative use of predictive analytics as a service and top-notch data scientists and mathematicians, has been providing global manufacturing companies with a clearer view of how their products are performing, helping to protect both their reputation and their balance sheet.

With We Predict, automotive manufacturers and suppliers see trends 2-3 years ahead of time, enabling the appropriate intervention and increasing their customers' satisfaction and loyalty.

Predictive analytics can only be successfully delivered by people who understand the mathematical and statistical principles that underlie modern data techniques. We predict's goal is to hire and keep the best mathematicians, statisticians and computer scientists by providing an outstanding working environment and sharing the profits of the business.

We predict is always looking for its next hire. Call or email to inquire about opportunities.

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OESA MEMBERSHIP

OESA COUNCIL MEMBERSHIP ONE OF THE MOST VALUED MEMBER BENEFITS Steve Horaney Vice President, Membership and Sales │OESA 248.430.5969 │ shoraney@oesa.org

OESA Executive Peer Group councils are consistently ranked as one of the top 3 OESA member benefits.

Council meetings provide supplier executives the opportunity to network with industry peers, address issues of common concern and share best practices.

Additionally, they offer actionable insight to help members advance their business interests.

• Chief Purchasing Officers (CPO)

OESA’s councils bring together more than 850 supplier executives. Council members are usually the most senior person in each functional area of a supplier organization. Through quarterly council meetings with candid roundtable discussions and subject matter experts, council meetings provide a unique forum to gain relevant information.

• Legal Issues (LIC)

There is a council for virtually every function at a supplier organization, including: • Advanced Technology (ATC) • Automotive Public Relations (APRC) • Chief Executive Officers (CEO) • Chief Financial Officers (CFO) • Chief Information Officers (CIO)

• Communication Executives (CEC) • Enterprise Leadership (ELC) • Environment, Health & Safety (EH&S) • Government Affairs Committee (GAC) • Human Resources (HRC) • Sales Executives (SEC) • Warranty Management (WMC) • Young Leadership (YLC) If your organization is a member of OESA and you are not on a council, I welcome you to attend a council meeting as our guest.

If your organization is not a member of OESA, please contact me directly (shoraney@oesa.org) to set up some time to discuss the many benefits of an OESA membership. I look forward to the opportunity to share this, and many other, member benefits with you.

Additional information about OESA peer group councils can also be found at www.oesa.org.

Discover OESA Membership Join the more than 450 OESA member organizations that are already represented by the leading association in the North American automotive supplier sector. Through advocacy initiatives, industry events, networking forums, global connections and expertise in automotive thought leaders, OESA members stay abreast of the industry and have access to exclusive information to help make critical business decisions.

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MEMBERSHIP ADVANTAGES • • • •

Industry Events - Member-driven topics Town Hall Meetings - Direct access to OEMs Peer Group Councils - Best practices Government Advocacy - Representation in D.C. and the States • Member Resources - Personal and online access For more information, visit oesa.org or call the OESA office at 248.952.6401.

OESA EVENTS

OESA MEMBERS ONLY - VOLKSWAGEN GROUP OF AMERICA TOWN HALL MEETING | AUG 14 OESA members are invited to participate in the eighth annual Volkswagen Group of America Town Hall on Aug. 14, 2017, at the Laurel Manor in Livonia, Mich. VW’s executive vice president of purchasing, Mahesh Kodumudi will discuss Volkswagen’s sourcing strategy and regional footprint, and Joerg Grosskreutz, general manager, commodities, Volkswagen Group of America, will present Volkswagen’s plan for localizing content, cost optimization and what that means for suppliers’ long-term opportunity.

Following the formal presentations, Marty Ross, manager, central functions, Volkswagen Group of America, will join Kodumudi and Grosskreutz for the question and answer session.

Additional Volkswagen executives will be available for networking from 1 – 2 p.m. and following the formal meeting. ► SUPPORTING SPONSOR

OESA Board of Directors Executive Committee Chairman of the Board Mike Mansuetti President Robert Bosch LLC Immediate Past Chair Samir Salman CEO NA Region Continental Automotive Systems, Inc. Vice Chairman Ramzi Hermiz President and CEO Shiloh Industries, Inc. Officer Julie A. Fream President and CEO Original Equipment Suppliers Association Officer Steve Handschuh President and CEO Motor & Equipment Manufacturers Association

Directors

OESA MEMBERS ONLY - TOYOTA TOWN HALL MEETING | AUG 22 OESA invites members to a Toyota Town Hall with Robert Young, group vice president, purchasing, supplier engineering development and cost planning, Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA), on August 22, 2017, at the Toyota Supplier Center in Saline, MI. Young is responsible for overseeing all vehicle parts and materials procurement, supplier preparation and cost planning for TEMA. To better serve its customers and position Toyota for long-term growth, Toyota recently established its headquarters in Plano, Texas, and expanded its engineering and purchasing in York Township, Mich.

For suppliers, this move is meant to foster greater customer-supplier collaboration in product innovation and development.

For additional registration and program information, contact OESA at 248.952.6401 or info@oesa.org.

Oscar Albin Executive President INA, Industria Nacional de Autopartes A.C. Paul Barnett President Principal Manufacturing James Bradbury President Grand Rapids Controls Company LLC Françoise Colpron Group President Valeo North America Frederick Cartwright Executive Director Clemson University International Center for Automotive Research (CU-ICAR) David C. Dauch Chairman and CEO American Axle & Manufacturing, Inc. (AAM) (Continued on page 18)

► SUPPORTING SPONSORS

OESA News - 2017 Third Quarter

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OESA EVENTS & YLC OESA Board of Directors Executive Committee

THE “LAW” OF STRATEGIC TALENT ATTRACTION / RETENTION | AUG 29

Jacqui Dedo Co-Founder Aware Mobility, llc

C-suite executives and their HR leads to attend The “Law” of Strategic Talent Attraction / Retention. The event, presented by Butzel Long, will be held on Aug. 29, 2017, at the VisTaTech Center at Schoolcraft College in Livonia, MI.

(Continued from page 17)

Paul Doyle CEO Coastal Automotive John Dunn President and CEO, The Americas, Plastic Omnium Auto Inergy Division Douglas J. Grimm Industry Advisor Michael Haughey President North American Stamping Group, LLC Ken Hopkins President and CEO Neapco Holdings, LLC Don Manvel Chairman AVL Americas Chris Obey President, Automotive Flex Lon Offenbacher President and CEO Inteva Products Michael Robinet Managing Director Automotive Advisory Services IHS Markit Dan Sceli President and CEO Peterson American Corporation Wes Smith President and CEO E & E Manufacturing Co., Inc. Armando Tamez CEO Nemak Jim Teets President and CEO ADAC Automotive James Verrier President and CEO BorgWarner Inc.

Talent is an organization’s biggest source of cost variance and productivity gain. The price of finding the right person can be costly, but the cost of losing someone great can cripple productivity. This program will examine various legal tools to attract, and keep, the best talent in this hyper-competitive market.

Butzel Long attorneys Linda Armstrong, shareholder – immigration, Rebecca Davies, shareholder – labor and employment, Art Dudley, shareholder – corporate law, Sheldon Klein, shareholder – co-chair of automotive industry team, Paul Mersino, shareholder – trade secrets & non-compete litigation and strategic planning & client satisfaction, Reggie Pacis, shareholder – immigration and co-chair of lateral recruiting, Jim Rosenfeld, shareholder – labor and employment, Andrew Stumpff, shareholder – employee benefits, and Dan Tukel, shareholder – labor and employment department chair, will provide insight on: • Winning the Recruiting War: Stock Options and Other Equity Incentives • International Talent: Finding It and Keeping It • Non-Competes and Trade Secrets: Protecting • Retention in the Millennial Age Following the presentations, audience members will have the opportunity to ask questions of the presenters.

OESA ACCEPTING NOMINATIONS FOR THE YOUNG LEADERSHIP COUNCIL Attracting and retaining key talent remains a top strategic challenge at most OESA member companies. OESA created the Young Leadership Council (YLC) to assist member companies in retaining key employees and provide a forum to develop those employees.

OESA is pleased to announce the formation of the YLC6 for 2017-2019 and is seeking nominations. The council is open to OESA supplier and affiliate member companies and provides a forum to develop and retain key personnel on a management track.

Nominees may come from any functional area including finance, sales, marketing, manufacturing, human resources, purchasing, logistics, communications or engineering.

For more infomation, please contact: Ginger Juncker Executive Director, Councils and Member Programs │OESA 248.430.5953 │ gjuncker@oesa.org

18 │ OESA News - 2017 Third Quarter

OESA EVENTS

CALENDAR OF EVENTS UPCOMING EVENTS Aug

08 Aug

14 Aug

22 Aug

29

Mobility Supplier Forum Q3 Futuris Automotive (US) Inc. Newark, CA OESA Members Only Volkswagen Group of America Town Hall Meeting Laurel Manor Livonia, MI OESA Members Only Toyota Town Hall Meeting Toyota Technical Center Saline, MI The "Law" of Strategic Talent Attraction VisTaTech Center Livonia, MI

Sep

12 Sep

28 Nov

13 Dec

01

FCA Town Hall Laurel Manor Livonia, MI SAVE THE DATE! OESA Members Only Honda Town Hall Laurel Manor Livonia, MI 2017 OESA Annual Conference The Industry’s New Landscape Suburban Collection Showplace Novi, MI SAVE THE DATE! OESA Members Only Ford Town Hall Ford World Headquarters

UPCOMING OESA COUNCIL MEETINGS* Aug

Chief Purchasing Officers Council OESA Conference Center Southfield, MI

Aug

Young Leadership Council 5 OESA Conference Center Southfield, MI

Aug

Environment, Health and Safety Council OESA Conference Center Southfield, MI

10 17 24 Sep

05

Chief Executive Officers Council OESA Conference Center Southfield, MI

Sep

Sales Executives Council Somerset Inn Troy, MI

Sep

Young Leadership Council 4 OESA Conference Center Southfield, MI

07 07 Sep

12 Sep

20

Chief Information Officers Council OESA Conference Center Southfield, MI Chief Financial Officers Council OESA Conference Center Southfield, MI

*Open to peer group council members and invited guests.

For more information and to register for OESA events and council meetings, visit oesa.org, or call 248.952.6401.

OESA News - 2017 Third Quarter

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Original Equipment Suppliers Association Check out our online publication at www.oesa.org/news

25925 Telegraph Rd., Ste. 350 │Southfield, MI 48033-2553 248.952.6401 │oesa.org │info@oesa.org Connect with us on

OESA News is provided by members of the OESA Communications Team.

April Buford Senior Director, Communications

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248.430.5964 abuford@oesa.org

248.430.5950 jlaskowski@oesa.org

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