OESA News 2018 3Q Edition 2

NEWS Original Equipment Suppliers Association

2018 Third Quarter │ Edition 3

2018 OESA Annual Conference | Nov. 7 | Register Today!

IN THIS ISSUE...

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The Suppliers' Voice Supplier Pulse CTO Update

10 Upcoming OESA Events 14 Meet New Members 17 Council Feature: Young Leaders

18 Calendar of Events 19 MERA Sustainable

Manufacturing Conference

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

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Voice

The Suppliers’

Julie A. Fream

President and CEO

Vehicles are becoming the most significant mobile device since the smart phone. This era of new mobility is attracting new suppliers, emboldening vehicle innovation and forging greater OEM/supplier collaboration.

It is in this new mobility landscape that OESA hosts the 2018 Annual Conference: Transform Innovate Lead Speakers and panelists include:

Neil Boehm,

Lisa Drake,

Russell Hensley,

Phil Koopman,

Deborah Kullman, Vice President, Business Development and Marketing - Vehicle Group, Eaton

Tom Lake, John McElroy, Senior Vice President, Host, Autoline North American Purchasing, Honda of America Mfg., Inc.

Emily Kolinski Morris, Chief Economist, Ford Motor Company

Michael Robinet, Managing Director, Automotive, IHS Markit

Daniel Sandberg, President and CEO, Brembo North America, Inc.

Ray Scott, President and CEO, Lear Corporation

Hinrich J. Woebcken, President and CEO, Volkswagen Group of America, CEO, Volkswagen North American Region

Jada M. Smith, Vice President, Advanced Engineering & External Relations, Aptiv

Sam Walker, Leaderhip Columnist, Wall Street Journal and Author "The Captain Class"

Dustin P Walsh, Senior Reporter, Crain's Detroit Business

Ann Wilson, Senior Vice President for Government Affairs, MEMA

Chief Technology Officer and Vice President of Engineering, Gentex Corporation

Mary Buchzeiger,

President and CEO, Lucerne International

Shinichi Yasui, Executive Vice President, TMNA Research and Development, Toyota

Vice President, Global Partner, Associate Professor, Powertrain Purchasing McKinsey & Company Carnegie Mellon and Global Purchasing University Operations, Ford Motor

As the industry evolves, companies must reevaluate everything – their corporate culture, business models, research and customer relationships. The conference will address the opportunities and the challenges to transform, innovate and lead the future of automotive. Suppliers are encouraged to attend.

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

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Thank you to our 2018 Annual Conference Sponsors.

Platinum Sponsors

Board of Directors

Presenting Sponsors

Premier Sponsors

Principal Sponsors

Supporting Sponsors

Conference Exhibitors

Sponsorship opportunities are still available.

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

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TRANSFORM INNOVATE LEAD

OESA Annual Conference | November 7, 2018 | Novi, MI

Agenda Highlights* Driving Mobility: The Supplier Leadership Perspective Mary Buchzeiger, CEO, Lucerne International Inc. Daniel Sandberg, President and CEO, Brembo North America, Inc. Ray Scott, President and CEO, Lear Corporation Moderator: Julie A. Fream, President and CEO, OESA Innovation: The Impact of New Technology Neil Boehm, CTO, Gentex Corporation Phil Koopman, Associate Professor, Carnegie Mellon University Jada M. Smith, Vice President, Advanced Engineering & External Relations, Aptiv Moderator: John McElroy, Host, Autoline Leading through Change Deborah Kullman, Vice President, Business Development and Marketing - Vehicle Group, Eaton Moderators: Russell Hensley, Partner, McKinsey & Company, Inc. and Hans-Werner Kaas, Senior Partner, McKinsey & Company, Inc. Navigating Peaks and Valleys: The Industry Outlook Panel Michael Robinet, Managing Director, Automotive Advisory Services, IHS Markit Emily Kolinski Morris, Chief Economist, Ford Motor Company Moderator: Mike Jackson, Executive Director, Strategy and Research, OESA Transforming OEM/Supplier Relationships Lisa Drake, Vice President, Global Powertrain and Purchasing, Ford Motor Company Tom Lake, Senior Vice President, North American Purchasing, Honda of America Mfg., Inc. Moderator: Dustin P. Walsh, Senior Reporter, Crain's Detroit Business Sam Walker, the Wall Street Journal’s Leadership Columnist and author of “The Captain Class” Ann Wilson, Senior Vice President, Motor & Equipment Suppliers Association (MEMA) Hinrich J. Woebcken, President and CEO, Volkswagen Group of America; CEO, Volkswagen North American Region Shinichi Yasui, Executive Vice President, Toyota Motor North America Research and Development

*Not an all-inclusive agenda.

For additional information and to register for the conference, visit oesa.org or call 248.952-6401.

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SUPPLIER PULSE

OESA Supplier Barometer Shows Growing Concern Over Tariffs and Trade Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

Despite a strong sales and production environment, a pessimistic supplier outlook prevails due to trade policy uncertainty across the automotive supply base in 3Q 2018. The OESA Automotive Supplier Barometer, a quarterly survey of executives at North American automotive suppliers on their 12-month outlook, posted a negative reading of 43 for the third quarter of 2018, seven points below a neutral level of 50.

"Policy uncertainty serves to constrain additional capacity investment and accelerate volatility through the supply chain, adding risk down the tiers."

Supplier Barometer Index (SBI): Even with strong economic fundamentals (i.e. low unemployment, high consumer confidence and robust vehicle sales), the SBI in 3Q 2018 reflects negative repercussions from the current administration’s current trade policy agenda. The latest OESA Supplier Barometer Index (SBI) reading dropped ten points from the 2Q 2018 result, in sharp contrast to the positive levels of 57 and 53 in the first and second quarters of 2018, respectively.

Concerns also remain over supply chain risks, commodity prices, the impact of Section 232 and Section 301 tariffs, as well as the fate of stalled NAFTA negotiations in the context of midterm congressional elections.

Each concern adds uncertainty to the planning environment, causing automakers and suppliers to reassess, revise and potentially postpone incremental investments until greater clarity can be determined.

Supplier executive responses reflect a universal increase in pessimism over prior quarter survey results. Some 38% of responses from smaller, more regionally-focused suppliers, reflect increasing pessimism, twice the rate compared to the prior quarter. Even more dramatic, 75% of executive responses from larger suppliers, with revenue between $500M and $1 billion, show a sharp increase in pessimism, up from 38% in 2Q 2018.

The themes of Globalization and Supply Chain fueled responses for the third quarter 2018 Supplier Barometer survey.

Globalization: Supplier export activities provide a meaningful contribution to overall market strength. Survey responses highlight a median of 10% of US supplier production exported in 2018. Median allocation of US exports by country rank Mexico the top destination (50%), followed by Canada (30%), while Europe and Asia 6 │ OESA News - 2018 Third Quarter

SUPPLIER PULSE each reflect an equal share (20%). Highlighting the nature of sophisticated supply chains, the median value of material costs for US output purchased outside the U.S. stands at 45%, up materially from a median response of 25% in 2017. The median values for highest material/component spend for US output by region include Asia (35%), Mexico (25%) and Middle East/Africa (23%). These points highlight the sophisticated nature of highly integrated supply chains that are vital for regional competitiveness and the "Now, more than ever, urgent need for clarity on NAFTA.

suppliers should seek

to use the increasing Supply Chain: Survey results show that 47% of respondents anticipate market turbulence to their North American supplier capacity to face rationalization pressures over advantage by looking the next year. Policy uncertainty serves to constrain additional capacity beyond the near-term to investment and accelerate volatility through the supply chain, adding risk down the tiers. In the context of supply risk, a concerning trend is emerging realize their strategy for as the number of financial watchlist suppliers has increased considerably. success."

Further supply concerns include persistent timing pressures due to late design changes or delayed part validation. Expect these factors to be compounded as steel shortages due to tariffs drive additional supplier changes and require additional late engineering and validation work.

Vehicle output remains robust, as OESA’s Affiliate Forecast Matrix reflects North American production of 17.3 million units in 2018.

The automotive industry is poised to achieve another milestone.

For the first time ever, North American vehicle production is forecast to surpass 17.0 million units for the fifth consecutive year.

Despite such a remarkable achievement, a wide range of market pressures including policy changes, cost, capacity, talent and supply chain--are turning leadership attention away from the crucial task of strategic planning. Now, more than ever, suppliers should seek to use the increasing market turbulence to their advantage by looking beyond the near-term to realize their strategy for success.

OESA’s Automotive Supplier Barometer survey results and the Sentiment Index chart are available on the OESA website at: https://www.oesa.org/resource/oesa-automotive-barometer-studies.

The OESA Automotive Supplier Barometer captures the pulse and analyzes the twelve-month business sentiments of top executives in the supplier industry. It is a quarterly snapshot of their concerns on commercial issues, the business environment and strategies that influence the supplier industry. This Barometer is distributed to vehicle manufacturers, financial institutions, governmental officials and the media to provide an on-going profile of the trends in the supplier industry.

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CTO UPDATE

Maintaining Perspective in a Time of Technological Uncertainty Brian Daugherty Chief Technology Officer - MEMA 248.430.5966 │ bdaugherty@mema.org

We live in a fascinating era of technological progress. In addition to the advances in consumer electronics, we are seeing similar rapid progress in automotive technology. Not a day goes by without dramatic predictions of fully autonomous, electric vehicles zipping us around while seamlessly communicating with each other and the roadway infrastructure. We also have pundits forecasting that we will soon be travelling in pilot-less flying pods - which in many ways is an easier problem to solve than autonomous "It’s important to remember ground-based navigation. However, it’s important to remember that most that most commentators in commentators in the popular press have no technical background, but the popular press have no they do enjoy the allure and hype of advanced vehicle technology. Given technical background, but they the media attention, combined with widely-varying growth forecasts for do enjoy the allure and hype of hybrids, battery electric vehicles (BEVs) and automation, how do we advanced vehicle technology." develop and maintain a realistic technology perspective?

It helps to examine the long history of automotive technology launches. Typically, most new systems have been deployed slowly and on low volume premium vehicles. Once the bugs are worked out and the risks are better understood, the feature is rolled out across the fleet over several years. While some now say this process is too conservative and needs to change, in general, it has been a very successful risk-mitigation strategy. Any issues are relatively low volume in nature and OEMs avoid large, expensive recalls of hi-tech features that are difficult to repair or replace. The success of this launch model needs to be considered as the industry develops future business plans and technology roadmaps. One of the real dangers facing OEMs and suppliers is investing very large amounts of money on technologies that end up not paying off for decades – either because they don’t live up to the public’s performance and safety expectations or they end up being too expensive to deploy in large numbers. This has always been true, but never more so than in the current environment.

Let’s look at automated vehicle technology in more detail, as an example.

As automated vehicle (AV) technology begins to move from demonstration and test vehicles to deployed systems, the new buzzwords will be reliability and redundancy. To achieve the necessary reliability when you remove the driver as a backup system, driverless AVs will require significant redundancy.

And not just for navigational sensors and computers, but also redundancy within the steering, throttle, and braking systems; power sources and distribution systems; and data networks. No one wants to have a failure occur (Ex: a squirrel eats partially through a critical cable) with no detection capability or redundancy present that can provide a failsafe recovery mode. Of course, the downside of redundancy is cost and weight.

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"As automated vehicle (AV) technology begins to move from demonstration and test vehicles to deployed systems, the new buzzwords will be reliability and redundancy."

CTO UPDATE How much redundancy does a driverless AV system require? Today, we often forget that the human driver is a very capable and low-cost redundancy for critical systems such as steering, braking, and throttle control. In current production vehicles for example, an electric power steering (EPS) system only needs to detect that a failure has occurred, and the electronic control unit shuts down the system. The driver then takes over as the backup and steers the vehicle manually.

The system does not need to determine what the failure is or recover in any manner – it just shuts off.

However, if no driver is present as a backup, things quickly get much more complex and therefore more expensive. Many additional sensors will be required to monitor the health of the primary, secondary, and potentially tertiary steering actuators and electronic motor controllers.

If a failure occurs, the steering needs to be handled by a functioning "We often forget that the human driver is a very capable and backup system while the vehicle safely exits the roadway. And low-cost redundancy for critical like aircraft, driverless AVs will need to develop and comply with standards for physical separation of redundant power lines and systems such as steering, data buses. Current automated test vehicles – while technologically braking, and throttle control." impressive - typically do not have any system redundancy beyond their external navigation sensors.

Another aspect to consider on the day when fully autonomous technology does come to fruition, is who will want to buy or ride in the second best or worse, the third best autonomous vehicle? We may see a situation similar to successful internet sites in which the market becomes winner-take-all. Most consumers don’t use the second-best search engine, auction site, or online marketplace because the top companies offer more information, buyers, or purchase options. The winning sites receive the most revenue and then have the ability to reinvest in additional employees and technology improvements to cement their dominant market position.

"Companies that carefully consider how technology development investments will fare over a wide range of adoption rates and timeframes will do well."

One of our goals at MEMA and OESA is to expose our members to many diverse points of view to help with technology strategy development. Companies that carefully consider how technology development investments will fare over a wide range of adoption rates and timeframes will do well. Developing products that can work across multiple vehicle types such as both hybrids and BEVs or SAE Level 2 AVs along with driverless SAE Level 4 vehicles will make companies less susceptible to technology risk.

Maintaining a realistic perspective is going to be increasingly important over the next several years. As our industry continues to rapidly deploy technology, it is worthwhile to keep in mind the automotive industry’s successful history of launching advanced automotive features and avoid letting media hype or optimistic forecasts overly influence automotive business plans.

If you are interested in a quick status update on current automotive technologies, please read the article in July's OESA newsletter.

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OESA EVENTS

OESA 3Q Mobility Supplier Forum | Sept. 6 OESA will host the third quarter 2018 “Mobility Supplier Forum” on September 6, 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.

Tanya Skilton, purchasing director, advanced technology, General Motors, will discuss the General Motors Innovation agenda, projects GM is working on in Silicon Valley and what they seek from suppliers.

Alexandre Marian, director - emerging automotive technologies, AlixPartners, will discuss the current electric and autonomous vehicle landscape. In addition, Jeff Klaben, senior business development director, SRI International, will discuss the challenges the auto industry faces with regards to cybersecurity.

For more information about the Mobility Supplier Forum and the 2018 meetings, contact Steve Horaney, vice president, membership & sales, OESA, at shoraney@oesa.org. The remaining date for the 2018 OESA “Mobility Supplier Forum” meeting is December 4, 2018. Automotive suppliers may join the Mobility Supplier Forum or register for the individual meetings in the events section of http://www.oesa.org. For registration and program information, contact OESA at 248.952.6401 or info@oesa.org.

Supporting Sponsor:

2018 OEM Terms and Conditions Update | Sept. 12 OESA, in partnership with Butzel Long, will host the 2018 OEM Terms and Conditions Update event on September 12, 2018, at the Schoolcraft College VisTaTech Center in Livonia, Mich. This meeting will provide attendees with insight on the latest OEM terms and conditions as well as new case law and regulations of interest to suppliers.

Butzel Long attorneys James Bruno, David DeVine, Jennifer Dukarski, Cynthia Haffey, Catherine Karol, Raul Rangel and Mitch Zajac will discuss new OEM terms and conditions and legal update, incorporated by reference: hidden landmines that may be in terms and vonditions, goals, hurdles and attempts at global terms and conditions, best practices in protecting trade secrets, overview of industry standards, federal regulations and state laws and tips of the trade as related to product development. In addition, Daniel Rustmann, shareholder, and Sheldon Klein, shareholder, Butzel Long, will participate in a simulated preliminary injunction hearing titled “So you decided to play chicken: The problems you’ll face if you seek or oppose a preliminary injunction to maintain supply.”

The updated OEM terms and conditions are included in the 2018 edition of the “OESA OEM Production P.O. Terms and Conditions Comparative Analysis,” publication which will be available for purchase at a discount prior to Sept. 12, 2018, with event registration or on site the day of the event. Please Note: There are no refunds on the publication after it has been delivered.

Exclusive Sponsor: OESA members and industry guests may register in the events section of http:// www.oesa.org. For registration assistance or program information, contact OESA at 248.952.6401 or info@oesa.org.

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OESA EVENTS

Volkswagen Group of America Town Hall | Sept. 13 OESA members are invited to participate in the 9th annual Volkswagen Group of America Town Hall on Sept.13, 2018, at the Sheraton Hotel in Novi, Michigan.

Mahesh Kodumudi, executive vice president of North American purchasing, Volkswagen Group of America, will discuss the company’s upcoming product launches and long-term strategy for North American Operations.

Following the formal presentations, management members from Volkswagen Group of America will join Kodumudi, for the question and answer session. Additional Volkswagen executives will be available for networking from 1 – 2 p.m. and following the formal meeting. Executives from the following functional areas are scheduled to be in attendance for networking: All Commodities, General Purchasing, Processes and Systems, and Supplier Diversity The event is an excellent opportunity to understand of VW’s North American operations and strategic plans, ask questions of VW’s senior purchasing leadership and have one-on-one conversations with commodity buyers and engineers. Lunch will be provided.

For registration assistance, contact OESA at 248.952.6401 or info@oesa.org.

Honda Town Hall Sept. 18 OESA members are invited to attend the 8th Annual OESA Honda Town Hall Meeting on Sept. 18, 2018, at the Laurel Manor in Livonia, Mich. The event will feature networking with Honda executives before and after the program, presentations by Tom Lake, senior vice president, North American purchasing, Honda of America Mfg., Inc., and additional Honda executives, and include a Q&A panel discussion.

Lake will kick-off the members-only event and introduce speakers who will share Honda’s perspective on new technologies, electrification, tariffs and NAFTA, as well as product mix.

Additional members from Honda’s purchasing team will join presenters on stage to take questions from the audience. Following the Q&A, commodity purchasing executives from the following teams will be available for individual one-on-one conversations: chassis, components, electrical, indirect procurement, machining, plastics/interiors, powertrain, raw materials, and stamping.

For registration assistance and program information, contact OESA at 248.952.6401.

Supporting Sponsors:

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OESA EVENTS

Driving Engagement Through Leadership Selection and Development | Sept. 19

Employee engagement is a critical business strategy that requires as much attention and emphasis as quality or customer focus. Employee engagement drives continuous improvement, customer service and employee retention – an important consideration in these days of labor shortages. Each of these factors has a profound impact on key performance indicators and overall profitability.

How do you select and develop leaders who know and understand how to drive engagement? Which skills, competencies and attributes required for effective leadership are trainable vs. hard-wired into a person’s personality? How can you evaluate someone’s leadership effectiveness prior to putting him or her into a leadership position? How can you gather and use data to mitigate risk and minimize poor leadership decisions?

To help member companies create a winning culture of engagement, OESA has developed a collection of events focused on how organizations can develop and maintain their employee engagement. Developed in partnership with DDI, the third, and final employee engagement meeting, Driving Engagement Through Leadership Selection and Development, will be held on Sept. 19, 2018, at the MSU Management Education Center, in Troy, Mich. and live webinar. Attendees will hear how automotive companies are using technology and data to make insightful, successful leadership decisions that impact employee engagement and financial performance. Speakers include Marilyn Carlstedt, Automotive and Manufacturing Talent Advisor, DDI, Vicki Center, Executive Services Consultant, DDI, Dr. James Clevenger, Automotive Leadership Consultant, DDI, and Elizabeth Crider, Ph.D., Organizational and Talent Development Consultant, DTE. The sessions are intended for employees who are involved with executing strategy, creating policy, transferring knowledge and creating great teams.

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

Exclusive Sponsor:

Human Capital Trends - Webinar | Sept. 20 The 2018 Deloitte Global Human Capital Trends report showcases the growing importance of social capital in shaping an organization’s purpose. How can the automotive companies respond?

New technologies present a massive opportunity for the automotive industry to achieve sustainable, inclusive growth. OESA members are invited to join OESA and Bradd Craver, managing director, Deloitte, on Sept. 20, 2018, for Human Capital Trends Reshaping the Automotive Industry. Attendees of this webinar will dive into how advances in artificial intelligence (AI), new communications technologies and people data will empower the workforce and enable automotive organizations to make a positive impact on society.

Participants on the webinar can expect to gain insight on, strategies for automotive organizations to build social capital and enhance their reputation, relationships and success, report findings on leveraging AI, communication technologies and people data for sustainable growth, and opportunities for human capital leaders to reconstruct the workforce and play a Exclusive Sponsor: broader business role.

OESA members may register in the events section of http://www.oesa.org. For registration assistance and program information, contact OESA at 248.952.6401.

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OESA EVENTS

30th Annual Canada/U.S. Automotive Supplier Event | Sept. 24 The Original Equipment Suppliers Association (OESA) and the Automotive Parts Manufacturers' Association (APMA) are pleased to announce the 30th annual Canada/U.S. Automotive Event on September 24, 2018, at The Henry in Dearborn, Mich.

This event is organized in cooperation with OESA, APMA and the Consul General of Canada, Detroit, and is meant to foster collaboration between OEMs and U.S. and Canadian automotive suppliers.

Joe Hinrichs, executive vice president and president of global operations, Ford Motor Company, will be this year’s guest speaker. Hinrichs will share his unique perspective on the future of the automotive industry and the role Ford will play in the new mobility landscape.

This annual event attracts hundreds of high-level automotive supplier industry executives from the U.S. and Canada and sells out quickly.

Individual tickets, tables of eight and a limited number of VIP tables are available for purchase. The VIP table includes a table of eight plus one (1) seat at the head table with event speakers. Partnership opportunities are also available. To register, visit the events section of http://www.oesa.org. For registration assistance and partnership opportunities, call 248.952.6401 or info@oesa.org.

Table Sponsors

Upcoming Town Hall Meetings Sept 13

Volkswagen Town Hall Novi, MI

Nov 30

Ford Town Hall Dearborn, MI

Sept 18

Honda Town Hall Livonia, MI

Jan 29

Nissan Town Hall Livonia, MI

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OESA MEMBERSHIP

WELCOME NEW MEMBERS C & U Americas, LLC 45901 Five Mile Road Plymouth, MI 48170 (734) 6560260 http://www.cubearing.com/ Member Representative: Jason Stocker, President Alternate Representative: Peter Zhou, Chairman C&U Americas is one of the top 10 bearing manufacturers in the world and the largest bearing producer in China. In North America, C&U Americas is based in Plymouth, MI. C&U supports Canada, Mexico and U.S.A. customers with sales, customer service, warehousing and distribution, as well as complete application engineering and technical analysis and testing.

C&U is dedicated to providing customers with a world class resource for high performance bearings that deliver best-in-industry quality and value.

EFT Analytics 4111 E 37th St N Wichita, KS 67220-3203 (212) 920-2300 www.eftanalytics.com Member Representative: Cameron Peek, Enterprise Solutions Consultant Alternate Representative: Brent Youngers, President EFT Analytics provides advanced analytics solutions for engineers. The technology platform enables engineers to quickly implement real-time, advanced analytics into their manufacturing process. By combining machine learning, data science and decades of process improvement experience, EFT is providing a highly unique concept that’s proven to deliver results. EFT is a subsidiary of Koch Industries, one of the largest private companies in the world.

With offices in Ireland, New York, and Kansas – EFT provides real-time predictive analytics, process optimization and energy management tools for more than 100 blue chip clients all around the globe.

High-Star Corporation 32890 Manor Park Garden City, MI 48135-1545 www.high-star.us (734) 634-7359 info@high-star.us Member Representative: Son Do, President Alternate Representative: Reginald Kelley, Vice President, Business Development High-Star Corporation is a full-service fabrication company with in-house engineering expertise, specializing in small volume high value manufacturing. Its capability includes precision machining, bending, general assembly, tube assembly, welding and weldment. High-Star Corporation also has international partners to make tooling, fixtures, and high-volume production. Its mission is to provide customized solutions with minimized cost that meets industry quality standards. It continues to develop and improve the company in design capability, manufacturing footprint, and fabrication capability.

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OESA MEMBERSHIP InTiCa Systems Av. Mina de Guadalupe #838 Col. Parque Industrial Santa Fe Ampliacion C.P. 36275 Silao, Guanajuato (+52) 14616108828 https://www.intica-systems.com/en.html Member Representative: Miguel Zarate, Sales Manager Alternate Representative: Rene Lopez, General Manager Since 2003, InTiCa Systems has proved itself as a reliable partner for different system suppliers in the automotive industry, especially in the development and manufacturing of customized inductive components and assemblies.

Structured processes and procedures as well as an extensive portfolio of customized solutions ensure a reliable and sustainable collaboration. The portfolio offering includes customized solutions for electromobility, hybrid-technology, actuator engineering, driving and access authorization systems, filters and safety technology.

The ITB Group, Ltd. 39555 Orchard Hill Place Suite 157 Novi, MI 48375 (248) 3806310 www.itbgroup.com Member Representative: Dr. Joel Kopinsky, Managing Director Alternate Representative: Ms. Mitra O’Malley, Managing Director Established in July 1992 - the year Renault introduced the Twingo - The ITB Group serves participants in the global automotive market. By combining superior technical and business skills, The ITB Group develops actionable solutions for a variety of clients including suppliers, OEMs and investment bankers. We have a proven track record in increasing operating profitability through a solid understanding of both the technical needs and the business hurdles our clients face in navigating the global automotive market.

Lucerne International, Inc. 40 Corporate Drive Auburn Hills, MI 48326 (248) 674-7210 www.lucerneintl.com Member Representative: Mary Buchzeiger, Chief Executive Officer Alternate Representative: Jennifer Nitz, Vice President, Business Development Lucerne International, founded in Oakland County, Michigan in 1993, provides cast, stamped and forged components and assemblies to the automotive and heavy truck industries.

Lucerne is a certified, Woman-Owned Business, and an industry leader of Chassis, Powertrain and Body Structural components. Lucerne’s focus is on next generation manufacturing bringing together new and innovative technology combined with lightweight materials. We strive to provide our customers with the highest level of satisfaction. We consistently produce and deliver the highest quality parts with the best landed product cost to our customers across the globe.

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OESA MEMBERSHIP

WELCOME NEW MEMBERS PCS Company 34500 Doreka Dr Fraser, MI 48026 (586) 294-7780 www.pcs-company.com Member Representative: David Cataldi, President Alternate Representative: Tom Berchulc, Director, Marketing Headquartered in Fraser, Michigan and with company roots dating back to 1950, PCS Company manufactures and distributes mold components, mold bases, hot runner products, molding supplies for the plastic injection and die casting industries. Our customers include plastic injection molders, mold makers, mold designers, and die casters throughout North America.

Being ISO 9001:2015 registered and relying on 60+ years of its service-oriented culture, PCS Company is passionate about offering competitively priced customer driven products with quick delivery. Operational excellence in all facets of our business is what differentiates PCS Company and is the foundation upon which consistently reliable and cost-effective solutions are provided in today's competitive business environment.

SEG Automotive North America LLC 27275 Haggerty Road Suite 420 Novi, MI 48377 (248) 465-2620 https://www.seg-automotive.com/en Member Representative: Ulrich Muehleisen, Head of Marketing Alternate Representative: Stephanie Lijewski, Marketing and Communications SEG Automotive is closely linked to the history of the automobile. Emerging from the Bosch Starter Motors and Generators division in 2018, the company stands for more than a century of innovations in this product sector: from starter motor and generator to start/ stop and mild-hybridization. SEG Automotive is actively shaping the automobile industry's journey from the combustion engine to electrification by delivering efficient solutions for CO2 reduction – regardless of the drive technology.

With 16 locations in the most important automobile markets in the world and over 8,000 employees, SEG Automotive offers a network that guarantees the highest level of engineering and production expertise worldwide – from Germany to China.

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COUNCIL FEATURE

Last Change to Nominate Young Supplier Leaders to Young Leadership Council (YLC7) OESA is seeking nominations for the seventh Young Leadership Council (YLC7). This council is open to all member companies and provides a forum to develop and retain future leaders. Participants come from all functional area including finance, sales, marketing, manufacturing, human resources, purchasing, logistics, communications or engineering.

During the 2-year program, council members gain insight from subject matter experts on leadership, personal development and industry topics and trends. Presented in a peer-to-peer environment, attendees share best practices and experiences.

Graduates leave the program better prepared for increased responsibility and equipped for the next step in their career with their member company.

Executives can nominate candidates for the Young Leadership Council by completing the nomination form.

The first meeting is October 11, 2018, at the OESA Conference Center in Southfield, MI.

“The access to industry leaders and speakers providing insight into leadership and critical issues was very eye opening and not available anywhere else.”

- YLC Alum

Recent Council Meeting Agenda Highlights: Leadership From My Perspective Presenters: • Laurie Harbour, President and CEO, Harbour Results • Carrie Uhl, Vice President, Procurement, MAGNA International • Ken Hopkins, President and CEO, Neapco, Inc. YLC Member Tours • Autoliv Technology Center - Two Sled Simulation Labs, Deployment & Impact Airbags Lab, Seatbelt Durability Lab, and ATD Lab • Robert Bosch, LLC - Development & Exploration of Bosch's "Next Generation Workspace" • Google - Understanding Google's workplace dynamics Topics Relating to The Industry and Young Leaders • Creating a High Performing Team • Transitioning from Manager to Leader - A Panel Perspective • What, How and Why-Based Leadership in Today's VUCA (Volatility, Uncertinity, Complexity, and Ambiguity) World

For more information on the OESA Young Leadership Council, contact Keiyania Mann at 248.430.5952 or kmann@oesa.org.

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CALENDAR OF EVENTS OESA Board of Directors Executive Committee

2018 UPCOMING EVENTS

Chairman of the Board Mike Mansuetti President Robert Bosch LLC

Sept

OESA 3Q Mobility Supplier Forum SRI International Menlo Park, CA

Immediate Past Chair Samir Salman CEO NA Region Continental Automotive Systems, Inc.

Sept

2018 OEM Terms and Conditions Update VisTaTech Center Livonia, MI

Vice Chair Françoise Colpron Group President Valeo North America

Sept

2018 OESA Members-Only Volkswagen Town Hall Sheraton Hotel Novi Novi, MI

Vice Chair Ramzi Hermiz President and CEO Shiloh Industries, Inc.

Sept

OESA Members-Only Honda Town Hall Meeting Laurel Manor Livonia, MI

Officer Julie A. Fream President and CEO Original Equipment Suppliers Association

Sept

Driving Engagement Through Leadership Selection and Development MSU Management Education Center Troy, MI

Sept

Human Capital Trends Exclusive Content Provided by Deloitte Webinar

Sept

30th Annual Canada/U.S. Automotive Supplier Event The Henry Dearborn, MI

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 Paul Doyle CEO Coastal Automotive

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TRANSFORM INNOVATE LEAD

OESA Annual Conference | November 7, 2018 | Novi, MI Register now to attend the 2018 OESA Annual Conference.

Sponsorship opportunites are filling up fast.

Contact Drew Rhodes at drhodes@oesa.org for more information.

(Continued on page 19)

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

18 │ OESA News - 2018 Third Quarter

CALENDAR OF EVENTS

UPCOMING OESA COUNCIL MEETINGS* Sept

Chief Executive Officer Council Meeting OESA Conference Center Southfield, MI

Sept

IT Leadership Council Meeting OESA Conference Center Southfield, MI

Sept

Advanced Technology Council Meeting OESA Conference Center Southfield, MI

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Chief Financial Officers Council Meeting OESA Conference Center Southfield, MI

Sept

Sales Executive Council Meeting Laurel Manor Livonia, MI

Sept

Tooling Council Meeting OESA Conference Center Southfield, MI

Sept

Warranty Management Council Meeting Laurel Manor Livonia, MI

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*Open to peer group council members and invited guests.

OESA Board of Directors

(Continued from page 18)

John Dunn President and CEO, The Americas Plastic Omnium Auto Inergy Division Douglas J. Grimm Immediate Past Chairman of the Board, MEMA Michael Haughey President North American Stamping Group, LLC Ken Hopkins President and CEO Neapco Holdings, LLC Kenichiro "Ken" Ito Executive Director DENSO Corporation 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

Remanufacturing Opportunities for OE Suppliers: MERA Sustainable Manufacturing Conference | Sept. 26-27 Automotive suppliers looking to diversify their product portfolios or expand service parts offerings should consider remanufacturing as a potential avenue for future growth. This sector presents an excellent opportunity to control your product - and sell it again profitably - after the initial application on a vehicle.

Wes Smith President and CEO E & E Manufacturing Co., Inc. Armando Tamez CEO Nemak Jim Teets President and CEO ADAC Automotive

MERA, our sister division, will host its annual Sustainable Manufacturing Conference in metro Detroit. The event provides automotive suppliers with an excellent opportunity to learn more about remanufacturing operations and to interface with C-level remanufacturing leaders.

OESA members receive the discounted MERA member rate!

Visit the mera.org for more details and a schedule of events.

OESA News - 2018 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

Jeff Laskowski Senior Manager, Communications

Abby Napier Communications Specialist

248.430.5964 abuford@oesa.org

248.430.5951 jlaskowski@oesa.org

248.430-5957 anapier@oesa.org

20 │ OESA News - 2018 Third Quarter