OESA News 2018 2Q Edition 1

NEWS

Original Equipment Suppliers Association

2018 Second Quarter │ Edition 1

April 17

Tariffs: Steel, Aluminum and Chinese Imports | Register Today!

IN THIS ISSUE...

3 4

The Suppliers' Voice Welcome New Members

8 10

Supplier Pulse Guest Column

12 Legislative Summit 13 OESA Events

This edition is sponsored by: OESA News - 2018 Second Quarter

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Make the mark.

Simplify complexity.

Change is here. You can either drive it or watch as the industry passes you by.

Innovate. Meet demand. Compete globally.

Daron Gifford, partner daron.gifford@plantemoran.com

plantemoran.com/automotive

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Voice

The Suppliers’

Julie A. Fream

President and CEO

OESA/MEMA: Ensuring the Suppliers' Voice is Heard in Washington, D.C.

The Motor & Equipment Manufacturers Association (MEMA) – OESA’s parent "It is an honor to organization – recently wrote a letter to the administration in opposition of the recent champion the business tariffs imposed on steel and aluminum. Our position is clear: While we support the concerns of the supplier administration’s focus on building a strong domestic steel and aluminum market, community. Together these tariffs will: with MEMA, OESA will • Limit access to necessary specialty products ensure the voice of • Raise the cost of motor vehicles to consumers suppliers is heard."

• Impair the industry’s ability to compete in the global marketplace Based on the feedback of our members, MEMA argues that tariffs on steel and aluminum will hurt the largest sector of manufacturing jobs in the United States. Many specialty materials and components imported by suppliers are used by hundreds of vehicle parts manufacturers. Suppliers' access to these specialty products is critical to the industry and the integrated global supply chain. Disruptions to the supply chain and increases in production costs will directly impact consumers, suppliers and the U.S. economy.

Have your voice heard and stay informed.

There are several ways for member executives to make your organization’s voice heard on tariffs and other government issues.

• Participate at the MEMA Legislative Summit, April 10-11, in Washington, D.C. This is a unique opportunity to meet with legislators and discuss how the tariffs and other proposed legislation will impact your business and the industry. To register, contact Briana Huxley.

• Attend the April 17 event, Tariffs: Steel, Aluminum and Chinese Imports, in Troy, MI Get the latest information from industry subject matter experts. This event will be held at the MSU Management Education Center and via webinar. For more information, visit oesa.org/events.

• Become a member of the MEMA Government Affairs Committee (GAC) Made up of motor vehicle parts suppliers, the GAC determines MEMA’s key legislative and regulatory priorities on the state and federal level. To learn more, please contact Catherine Boland.

It is an honor to champion the business concerns of the supplier community. Together with MEMA, OESA will ensure the voice of suppliers is heard.

As always, please feel free to contact me at 248.430.5964 or jfream@oesa.org.

Sincerely,

OESA News - 2018 Second Quarter

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WELCOME NEW MEMBERS AirBoss Flexible Products 2600 Auburn Ct.; Auburn Hills, MI 48326-3201 Tel: 616.450.4918 | Http://www.flexible-products.com Member Representative: Randy Vant Hul Alternate Representative: Rais Ahmed AirBoss Flexible Products is one of the largest suppliers of molded and mold-bonded rubber parts in the North American automobile industry. For more than 30 years, it has applied engineering talent and the latest molding technologies to solve every type of vibration problem for America’s top automakers.

Argent International, Inc. 41016 Concept Dr.; Plymouth, MI 48170-4252 Tel: 734.582.9800 | Http://www.argent-international.com Member Representative: Fred Perenic, President Alternate Representative: Scott File, Director, Sales and Engineering Argent International, Inc., a 3M Preferred Converter, has specialized in designing, fabricating and distributing a wide variety of custom adhesive and die-cut solutions for more than 40 years! Argent is TS 16949 and ISO 14001 certified. Through a wide variety of converting technologies, it offers a great diversity of products ranging from simple die cut tapes, seals and gaskets, to fully-assembled sub-components. Argent utilizes more than 250 different raw materials used for attachment, buzz, squeak & rattle / NVH, EMI shielding, fastening, gasketing & sealing, labeling, printing & identification, masking, safety, surface protection, wind noise / sound dampening, and much more!

Aware Mobility, LLC 885 Oakdale; Ann Arbor, MI 48105 Email: info@awaremobi.com | Http://www.awaremobi.com Member Representative: Jacqui Dedo, Co-Founder Alternate Representative: Don Remboski, Co-Founder Profound change fast approaching. The injection of innovation, new propulsion systems, connected technology, smart cities and open vehicle architectures will make today’s automobile industry unrecognizable in a matter of years.

Aware Mobility is preparing for the Mobility Ecosystem by fostering collaboration, innovation and business relationships with companies of every size that share the spirit of, and are energized by, the new business models. Aware Mobility engages its unique mix of multi-industry experience, vision, IP development and global resources to collaborate with, invest in, develop product portfolio’s and deliver market-need focused - technology and business transitions for its customers.

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Calsonic Kansei 27000 Hills Tech Ct.; Farmington Hills, MI 48331-5725 Tel: 248.848.4850 | Http://www.calsonic.com Member Representative: Talal Kakish, Vice President Alternate Representative: Matt Mulliniks, Senior Vice President Customers look to Calsonic Kansei for expert systems integration. Whether it's a cockpit module, HVAC system, front end module, exhaust system or electronics components, Calsonic produces complete parts modules that work seamlessly together. Its unique approach to integration improves overall design, increases quality, and lowers costs to effectively merge cutting edge technology, superior quality, and outstanding customer service. Its North American facilities operate as centers of excellence. At each center, it has assembled the latest equipment and teams of experienced people focused on making their piece of the product line the best it can be.

Davalor Mold, LLC 46480 Continental Dr.; Chesterfield, MI 48047-5206 Tel: 586.5980100 | Http://www.davalor.com Member Representative: Jerry Mosingo, Chairman and CEO Alternate Representative: William Werling, CFO Davalor is an industry leader in production and prototype plastic injection mold construction and high-volume production injection molding. Davalor Mold is a full-service plastic injection molding supplier delivering world-class service and quality for more than twenty-seven years. As an ISO9001:2000 / ISO14001:2017 / IATF 16949:2017 registered company, Davalor Mold will continue to provide superior products utilizing advanced technology with responsive customer service. By using a systemic controlled approach to build and deliver tools for manufacturing, improving repeatability of manufacturing parts with close tolerances over millions of shots and zero defects. Any Part. Any Resin. Any Industry.

Ducker Worldwide 1250 Maplelawn Dr.; Troy, MI 48084-5514 Tel: 248.530.2016 | Http://www.ducker.com Member Representative: M. Scott Ulnick, Chairman and Managing Principal Alternate Representative: Kristen Balasia, Commercial Director Ducker Worldwide, a premier consulting and research firm, is driven to help clients achieve their most ambitious growth goals. Custom market intelligence, strategic consulting and transaction advisory services are delivered by fully engaged Ducker principals and a diverse team of global talent. With decades of experience across a wide range of global industries, Ducker leverages strategic data and analytics to accelerate and drive certainty to strategic growth decisions.

Ducker Worldwide has extensive experience in industrial B2B markets throughout the automotive & transportation, construction, chemical, energy, healthcare, industrial, and material industries. Ducker is headquartered in Troy, Mich., with offices around the world, including Paris, Berlin, Shanghai, Bangalore and London. Founded by William H. Ducker in 1961, Ducker celebrates more than 57 years in business.

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WELCOME NEW MEMBERS Hoerbiger Finestamping 555 Parkside Dr.; Waterloo, Ontario N2L 5E7 Tel: 519.772.0951 | Http://www.hoerbiger.com Member Representative: Scott Kolinski, Sales Manager Alternate Representative: Wayne Eadie, Vice President, Market and Product Lines Hoerbiger is a partner to the automotive industry around the world. The know-how of the strategic business unit drive technology has enabled Hoerbiger to distinguish itself among customers as a leading and sole independent full-service provider of synchronizers for manual and dual clutch transmissions. Complementary to its synchronizer systems, it offers precision fine stampings components for transmissions and engines. Hoerbiger also offers a wide range of friction lining technologies (steel, sinter, carbon and organic linings) which are ideally tailored to customers’ tribological conditions to meet their specific applications and needs. All Hoerbiger materials have been extensively proven in market-leading customer applications.

Nexen Tire America 340 E Big Beaver Rd, Ste 125; Troy, MI 48083-1221 Tel: 248.602.9877 | Http://www.nexentireusa.com Member Representative: Jayden Lee, Senior Account Manager Alternate Representative: Julie Anderson, Inside Sales Nexen Tire, established in 1942, is a global tire manufacturer headquartered in Yangsan, South Gyeongsang Province, and in Seoul, South Korea. Nexen Tire, one of the world's fastest growing tire manufacturers, works with 491 dealers based in 141 countries around the world. Nexen Tire produces tires for passenger cars, SUVs, and light trucks with advanced technology and excellence in design. The company also focuses on producing UHP tires, which are based on advanced technologies. Nexen Tire supplies OE tires to global car makers in various countries around the world. In 2014, the company achieved a grand slam of the world's top four design awards for the first time amongst the various tire makers in the world.

Tweddle Group 24700 Maplehurst Dr.; Clinton Township, MI 48036-1336 Tel: 586.840.3275 | Http://www.tweddle.com Member Representative: Paul Wilbur, President and CEO Alternate Representative: Brian Suszek, COO Tweddle Group can bundle an entire digital owner experience - the app, the touchscreen, and the online in an intelligent way, along with a user guide and serve it to customers with contextual awareness. We make owner’s information a vital part of the customer’s daily life.

Tweddle Group creates understanding. It stands atop a massive storehouse of technical data, compiled over decades of service to clients and clients’ customers.

What does Tweddle do? Well, it does lots of things. But its reason for being is simple: its clients build excellent products, and Tweedle Group makes its customers love those products even more.

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Ushr 38701 W. Seven Mile Road, Ste. 170; Livonia, MI 48152 Tel: 248.982.2786 | Http://www.ushrauto.com Member Representative: Chris Thibodeau, Senior Vice President and General Manager Alternate Representative: Brian Radloff, Vice President, Business Development Ushr, Inc. offers automotive manufacturers the most accurate, comprehensive and advanced high-definition map technology available on the market today. Located at the epicenter of automotive development in Detroit, Ushr’s technology and software are shaping the evolution of self-driving technology by providing customers with the reassurance that the paths their vehicles travel are safe, smart and predictable. Ushr has mapped the entire U.S. and Canada controlled access highway network with under four inches deviation.

Ushr’s technology platform provides the most accurate long and medium-distance sensing systems to enable autonomous vehicles (AVs) to safely navigate roadways.

Weber Automotive 1750 Summit Dr.; Auburn Hills, MI 48326-1780 TeL: 843.875.4828 | Http://www.weber-automotive.com Member Representative: Chip Quarrier, Vice President, Sales Alternate Representative: Jonas Linke, Vice President - NAO Operations Currently, Weber Automotive ranks among the most technologically-advanced companies in the global automotive supplier industry. It has more than 1500 skilled and highly motivated employees at six production sites in Germany, Hungary and the U.S. Weber Automotive produces drive components for passenger, commercial and recreational vehicles on behalf of major manufacturers. It specializes in machining engine and drive components and assembling complete drive systems.

Witzenmann 1201 Stephenson Hwy.; Troy, MI 48083-1105 Tel: 248.588.6033 | Http://www.witzenmann.com Member Representative: David Presley, Director, Sales and Engineering Alternate Representative: Nick Denis, Team Leader - Ford and FCA With 24 Companies in 19 countries Witzenmann is the worldwide Number 1 in its industry. Witzenmann is a global group specializing in the design and manufacture of flexible metal elements. Guided by its vision of "managing flexibility", Witzenmann has become renowned as a reliable manufacturer and as the innovative development partner of choice within the industry.

Wolverine Advanced Materials 5850 Mercury Dr, Ste 250; Dearborn, MI 48126-2980 Tel: 313.749.6100 | Http://www.wamglobal.com Member Representative: Ryan Vargovich, OE Brake Sales Manager Alternate Representative: Brian Knox, VP Global Sales Wolverine Advanced Materials is a leading developer and manufacturer of high-performance materials. Its core competency is in performance-critical, specialty elastomer-coated metals that offer damping and sealing solutions in the automotive brake NVH and sealing industries. Extensive industry knowledge and innovative materials have made Wolverine a desired and trusted global supplier for more than 80 years.

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SUPPLIER PULSE

CRAFTING A FRAMEWORK FOR SUPPLIER SUCCESS Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

Divergent Trajectories The past year saw sales in the United States as a tale of two vehicle categories: cars and light trucks. By the end of 2017, light vehicle sales surpassed 17.2 million units, posting a decline of 1.8 percent from record 2016 levels. This result masks a dramatic divergence in the market as passenger car sales fell sharply by 10.9 percent while light truck sales accounted for a 4.3 percent increase. Within the truck category, cross-over vehicles posted the strongest sales gains for the year, up over eight percent. Utilities posting the highest year over year sales increases in 2017 included the Nissan Rogue, the Chevrolet Equinox and Toyota’s RAV4.

Speed Bumps Ahead Mixed results in 2017 highlight trends worth watching. On a positive note, transaction prices at year end rose almost three percent year-over-year, averaging nearly $33,000 in 2017, "Suppliers are encouraged to primarily due to a richer mix of highly contented pickups and SUVs. prepare for a more dynamic sales However, incentives as a percentage of MSRP averaged a heady environment by utilizing scenario 11.2 percent, cutting into margins on many vehicles, especially lessplanning tools to assess potential profitable passenger cars. business impacts. "

Retail sales accounted for 14.0 million units and outpaced the market, as volume fell just 1.1 percent from year ago levels. In 2017, fleet sales accounted for 18 percent of U.S. sales volume, with a sizable contribution from the lower margin daily rental market. Moreover, these vehicles have the potential to depress pricing on the new vehicle market as the rental car fleet transitions to the used vehicle auction. High inventories of used vehicles push resale prices lower, providing many consumers added incentive to consider buying a low mileage used vehicle at a deep discount.

All of which raise a reasonable concern regarding how long strong vehicle sales levels can be maintained— and the prospect of an industry downturn. While forecasts vary, the consensus reflects historically healthy sales volumes, with demand set to taper over the forecast horizon. With breakeven points well below forecasts, suppliers are better positioned to weather any mild downturn in sales and production in the near-term.

Suppliers are encouraged to prepare for a more dynamic sales environment by utilizing scenario planning tools to assess potential business impacts.

The Race for Technology Suppliers are actively assessing acquisitions (more likely for large companies in the next 12 months) and divestitures (more likely for smaller companies). Acquisitions are being driven primarily by the need to gain technologies and to access new customers. Global auto manufacturers and suppliers face the challenge of reallocating investments and organizational talent away from lower margin Flexibility and liquidity will opportunities. Successful companies will establish a dual focus of prioritizing be key to thriving in a volatile higher margin programs while increasing capabilities and the awareness of environment, and strategic these competencies to support competitive portfolios in the EV/AV space plans should be crafted to mitigate impacts of potential that align with a cautious pace of adoption over the forecast horizon. market volatility.

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SUPPLIER PULSE The Road Ahead It is no secret that the automotive sector is cyclical, taking dramatic turns as the economy rises and falls. The challenge this represents is considerable given the long lead times and massive capex outlays required to bring new products and technologies to market. The market environment often changes dramatically by the time a new product is realized, fundamentally impacting its prospects for success or failure.

According to the results of the 1Q 2018 OESA Supplier Barometer, a survey of senior executives in the supplier industry, greater optimism continues. In 1Q 2018, the supplier barometer index soared eleven points from 4Q 2017 to a score of 57, with broad based gains in optimism across companies of all sizes.

Stronger results have been fueled by passage of the Trump administration’s tax reform plan and continued market strength.

Despite the strong momentum, uncertainty remains due to ongoing volatility, with trade policy moving ahead of poor sales of programs supplied as the primary threat over the next 12 months. While currently positive, the supplier barometer index continues to reflect extraordinary volatility. Uncertainty within the government policy includes not only NAFTA renegotiations, but also section 232 and section 301 tariffs. These policy actions can drive far reaching changes and thus corresponding challenges throughout supply chains that can hurt suppliers and their employees.

Trucks will dominate launch activity for the foreseeable future. This is true regionally and increasingly accounts for materially higher growth rates in global markets. Recent auto shows highlight this trend with luxury brands utilizing the Geneva Motor Show to reveal all-new CUVs. These offerings include the Jaguar I-Pace battery electric crossover, while Lexus extends its portfolio down-market, introducing the subcompact UX soft roader. The New York Auto Show featured a stunning array of utility reveals from luxury and mainstream brands alike. Broader luxury utility portfolios are crucial to meet diversified consumer demand across growing global markets. Cadillac showcased its sophisticated Cadillac XT4, featuring an more refined version of its art and science design language. Lincoln unveiled the return of its 7-passenger Aviator entry, which will share its underpinnings with the Explorer. Automakers recognize the opportunity and are eager to tap into the market and margin potential in the utility category. Volkswagen is no exception, revealing plans to expand its product range with a 5-passenger Atlas Cross Sport, while also showing the rugged Atlas Tanoak pickup concept, based on the 7-pasenger Atlas. Such entries certainly offer growth opportunities yet are sure to usher greater competitive intensity into the market as well.

While car launches will hold steady and even increase somewhat in the next two years due to production localization, pressure will remain on OEMs to align their manufacturing footprints with demand. Suppliers must conduct a careful assessment of their book of business to proactively prepare for future changes.

Despite the potential for uncertainties to negatively impact the industry, supplier feedback reflects growing optimism over strong business fundamentals. New investments and incremental product name support tremendous stability in the market - which make this the right time for OEMs and their suppliers to fund and prepare for the future.

OESA News - 2018 Second Quarter

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GUEST COLUMN

AUTONOMOUS VEHICLES WILL CHANGE EVERYTHING IN THE NEXT DECADE, RIGHT? Pete Kelly Managing Director, LMC Automotive Kelly@lmc-auto.com

Tracking the developments in the field of Autonomous Vehicles (AVs) is a complex endeavour. At LMC Automotive, our goal – to produce responsive and focused forecasts for the automotive industry – requires a view on the most likely development path in this area. But there are a number of differences between this and our traditional industry analysis. One is that there is no historical precedent for this kind of technology change.

Another is the vast array of information, much hidden by commercial sensitivities, to be tracked when forming a view. Even within the developing AV industry itself, there is a huge range of opinion on what is possible.

For automotive industry participants, planning for the large-scale arrival of high autonomy (vehicles at SAE Level 4 or above) is now a standing item on operational and strategic plans. At LMC Automotive, we have developed some basic principles to determine how this will play out.

One, accept that this technology change requires forecast scenarios for both timing of mass adoption of AVs and the numbers likely to be involved. Anybody offering confident forecasts on AV markets right now is either trying to fool their audience, or has already succeeded in fooling themselves over the certainty of their projections. Things will become clearer over time and this will allow for a narrowing of the scenario ranges. But it is prudent to have an open mind now, with views of the AV dreamers at one end of the spectrum, and the AV sceptics at the other.

Two, focus on and monitor the development of a large array of factors that will genuinely enable the uptake of AVs in the future.

Three, engage continuously with those actually creating technology and systems that will enable successful AV projects. Interestingly, in talking with technology, and particularly software, specialists, it is common to encounter a determination to succeed in AV development coupled with realistic expectations on the timeframes involved.

Four, maintain a live set of forecast scenarios for AVs, responding to new developments as they continue to come thick and fast.

Five, align a central forecast to our traditional automotive sector models, to account for the impact on nonhigh-autonomy vehicles. Once we have significant deployments of AVs, shared autonomous mobility is going to destroy a component of traditional owned-vehicle demand. In this respect, the impact of shared AVs is of paramount importance and a real focus of our analysis. The trouble here is that nobody yet understands how many owned vehicles will be displaced by each deployed shared AV. And this, therefore, means a few more scenarios are needed to capture low, medium or high levels of substitution.

A sixth and final point is to retain some scepticism about claims that the transformation is coming very soon.

We have categorized the barriers to adoption into broad groupings, each of which has a number of critically important sub-sections. These are: in-vehicle technologies/capabilities; immediate environment external issues; the human factor; commercial considerations; and broad operating frameworks (see inlay). For mass adoption to proceed successfully, the majority of these issues must be addressed completely. Among the many items where we see potential for delays, some stand out: managing complex city situations (pedestrians, cyclists, 10 │ OESA News - 2018 Second Quarter

GUEST COLUMN

unpredictable human drivers, etc.) without unacceptably hesitant or aggressive AV driving styles; meeting peak demand (if significant AV fleet redundancy is not available for peak times, shared AVs will not be widely relied upon as a core of future mobility); regulation (in the context of highly varied operating conditions, safety levels, differing rules-of-road road norms); agreement on ethics and morality of AV decision making (which appears under-developed at this point); required AV-supporting infrastructure (which can take decades to implement at scale); integration with public transport systems (also under-developed and still mostly envisaged in concept form); and human resistance to change. Other thorny issues will no doubt emerge.

The organizational complexity of the holistic solution is daunting, which is why, initially, considerable resources and partnerships have been required by AV developers to move forward, in stepwise fashion. In this way, the initial trials, running into thousands, not hundreds of thousands, of AVs will inform developers about how to do it. Each iteration will provide learnings for the next stage.

So when you next see a media report that “Autonomous Vehicles have arrived” or that “The revolution has started” it is important to be aware that this will be just one of the earlier steps in an evolution towards a new form of personal mobility, likely to take place over a generation or more. If you have already seen predictions that the traditional industry will be swept away by AVs by the end of the 2020s, then perhaps take that with a pinch of salt. No doubt, we will see some impressive results, but it is likely that we will also see some significant limitations. It will be a long road.

LMC Automotive For 30 years LMC Automotive has been offering independent and 100 percent automotive focused intelligence, insight and analysis into how market dynamics, economic, regulatory and technological change impact vehicle sales and production.

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LEGISLATIVE UPDATE

GET INVOLVED: REGISTER FOR THE 2018 MEMA SUMMIT!

MEMA's 2018 Legislative Summit Tuesday, April 10 - Wednesday, April 11, 2018 Mandarin Oriental Hotel | Washington, DC

"It's an incredible opportunity because we actually get to go and talk to our Congressmen and Representatives about the key issues. It's powerful!"

-- Lynn Kier, Schaeffler Group USA, Inc

"[Members of Congress] want to see the employees, they want to see those folks flying in from Michigan or Indiana to come talk to them directly."

--Ian Musselman, Continental CLICK HERE to hear real-life testimony from industry colleagues about the MEMA Summit and learn why this is a must-attend event each year.

For more information, visit http://www.mema.org/dcsummit.

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OESA EVENTS

PROFESSIONAL DEVELOPMENT SERIES | APRIL 27 AND JUNE 5 The Original Equipment Suppliers Association (OESA) invites customer-facing associates of automotive suppliers to attend the second in the “Professional Development Series” of meetings. The meeting will take place April 27, 2018, at the MSU Management Education Center, in Troy, Mich.

These meetings cover a wide range of topics to provide professional growth assistance and insight to emerging trends in the automotive industry.

The dates and focus for remaining 2018 OESA Professional Development Series meetings are: •

•

April 27, 2018 Approaches to Address Customer Issues, Understanding OEM Terms and Conditions and Industry Technology Trends June 5, 2018 Professional Presence, Email Etiquette and a North American Market Outlook

For more information about the OESA Professional Development Series, contact Steve Horaney at shoraney@oesa.org.

OESA MOBILITY SUPPLIER FORUM | MAY 8 The second quarter 2018 OESA “Mobility Supplier Forum” will be held on May 8, 2018, at SRI International in Menlo Park, California. This automotive forum meets quarterly in California’s “Silicon Valley” area and is intended to help automotive suppliers advance their business interests in connected and transformative technologies. Each meeting features insights from leading industry experts on issues of common concern for automotive suppliers.

Dennis Clark, managing director, strategic venture partnerships, Honda Innovations, will discuss projects Honda is working on in Silicon Valley and what they seek from suppliers. Linda Paullin-Hebden, partner, Warner Norcross & Judd LLP, will discuss how to maximize the upside while avoiding the pitfalls of entering into agreements with technology startups. In addition, Dr. William S. Mark, president, information and computing sciences, SRI International, will discuss “Artificial Intelligence and Driver Assistance for Vehicle Automation."

Supporting Sponsors:

For more information about the Mobility Supplier Forum and the 2018 meetings, contact Steve Horaney, vice president, membership & sales, OESA, at shoraney@oesa.org.

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

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OESA EVENTS 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 Chair Françoise Colpron Group President Valeo North America Vice Chair 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 Oscar R. Albin Executive President INA, Industria Nacional de Autopartes A.C. Paul Barnett President Principal Manufacturing James Bradbury President Grand Rapids Controls Company LLC David C. Dauch Chairman and CEO American Axle & Manufacturing, Inc. (AAM) Jacqui Dedo Co-Founder Aware Mobility, LLC

TARIFFS: STEEL, ALUMINUM AND CHINESE IMPORTS | APRIL 17 President Trump recently signed proclamations on steel and aluminum import tariffs. This directly affects the current business models of many automotive parts suppliers and could have a significant impact on the automotive industry. OESA members are invited to join OESA, the Motor & Equipment Manufacturers Association (MEMA) and Butzel Long for an executive breakfast briefing on Tariffs: Steel, Aluminum and Chinese Imports, on April 17, 2018, at the MSU Management Education Center in Troy, MI, and via webinar.

Butzel Long attorneys Catherine Karol (Detroit Office) and Les Glick (Washington Office) will provide insight on: • Status of Country Exemptions • Customs Procedures and Product Exclusions • Potential Trading Partner Retaliation • Other Possible Challenges Karol and Glick will also provide the latest information on Chinese import tariffs, including: • Timing • What’s Included and What’s Not • Procedures Additionaly, Ann Wilson, senior vice president, government affairs, MEMA, will provide an update on MEMA’s lobbying efforts in Washington, D.C., and the potential impact on NAFTA negotiations.

A Q&A session with all speakers will follow the formal presentations.

Exclusive Sponsor:

Paul Doyle CEO Coastal Automotive (Continued on page 15)

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

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CALENDAR OF EVENTS

2018 UPCOMING EVENTS April

10-11 April

17

April

27 May

8

OESA Board of Directors

MEMA Legislative Summit Mandarin Oriental Hotel Washington, D.C.

(Continued from page 14)

Tariffs: Steel, Aluminum and Chinese Imports MSU Management Education Center Troy, MI OESA Professional Development Series II MSU Management Education Center Troy, MI

Ken Hopkins President and CEO Neapco Holdings, LLC Kenichiro "Ken" Ito Executive Director DENSO Corporation

SAVE THE DATES Toyota Town Hall Saline, MI

Sept. 13

Volkswagen Town Hall Novi, MI

Oct. 2

Nissan Town Hall Livonia, MI

Nov. 30

Ford Town Hall Dearborn, MI

Nov.

7

OESA Annual Conference Novi, MI

UPCOMING OESA COUNCIL MEETINGS* April

17

April

18

April

19

April

24

April

25

April

26

Douglas J. Grimm Immediate Past Chairman of the Board, MEMA Michael Haughey President North American Stamping Group, LLC

OESA 2Q Mobility Supplier Forum SRI International Menlo Park, CA

July 17

John Dunn President and CEO, The Americas Plastic Omnium Auto Inergy Division

Legal Issues Council OESA Conference Center Southfield, MI Automotive Public Relations Council OESA Conference Center Southfield, MI

Don Manvel Chairman and CEO 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

Chief Purchasing Officers Council Laurel Manor Livonia, MI

Jim Teets President and CEO ADAC Automotive

Chief Executive Officers Council OESA Conference Center Southfield, MI

James Verrier President and CEO BorgWarner Inc.

Communication Executives Council MSU Management Education Center Troy, MI Human Resources Council MSU Management Education Center Troy, MI *Open to peer group council members and invited guests.

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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

Jeff Laskowski Senior Manager, Communications

248.430.5964 abuford@oesa.org

248.430.5951 jlaskowski@oesa.org

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