OESA News 2020 - Third Quarter - Edition 2

NEWS Original Equipment Suppliers Association

2020 Third Quarter │ Edition 2

FCA North America Town Hall Meeting August 12, 2020

IN THIS ISSUE...

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The Suppliers' Voice OESA Supplier Pulse OESA Events

7 New Members 8 OESA Event Calendar

A virtual event | August 4-5, 2020 Secure your pass for two days of inspirational speakers and a “front-row� seat to understanding the impact of COVID-19 on the current and future automotive and mobility industries.

Attend from any location and make new connections through this exciting platform.

SPEAKERS INCLUDE: Raj Batra President, Digital Industries Siemens USA

Dane Parker Chief Sustainability Officer General Motors

Elaine Buckberg Chief Economist General Motors

Gulay Serhatkulu Senior Vice President, Performance Materials North America BASF Corporation

Larry Dominique President and Chief Executive Officer PSA North America

Boris Shulkin Vice President, Research and Development Magna International Inc.

Frederick Mau Intellectual Property Counsel Toyota Motor North America, Inc.

Katherine Worthern Vice President, Direct Purchasing Yazaki North America

SAVE $50 WITH PROMO CODE: MBSDEAL Register today at www.cargroup.org/mbs

Voice

The Suppliers’

OESA’s Commitment to Diversity and Inclusion OESA champions the voice of automotive suppliers and our values represent a culture that treats those we serve with professionalism and respect.

Recent social and racial events have shed light on the necessity for more action and greater accountability as it relates to diversity and inclusion.

OESA is committed to making changes at the association, in the automotive supplier industry and the community.

I am pleased to share the OESA Diversity & Inclusion Statement; it is our mantra that will guide many of our actions moving forward: OESA fosters a respectful, diverse and collaborative community. We promote inclusion in all aspects of the association and ask you to embrace and honor this commitment.

This commitment will be shared at OESA events and council meetings to remind each other that we all have a responsibility to create a more collaborative and diverse environment. To put OESA’s commitment into action, we are initiating opportunities for OESA members to learn more about diversity and inclusion activities, and to support the industry’s efforts in this area.

I am pleased to announce the formation of OESA’s Diversity & Inclusion Forum for the automotive supplier industry. Initially, this forum will meet quarterly to hear from expert guest speakers and explore best practices. Additionally, this group will identify a shared plan for all suppliers to support the improvement of diversity and inclusion in their communities.

We hope you will join us in making the industry better through diversity and inclusion. The first meeting of the Diversity and Inclusion Forum will be September 10, 2020, from 9 to 11:30 a.m. To learn more or sign up to attend, please contact Keiyania Mann (kmann@oesa.org and 313.676.1670) or Drew Rhodes (drhodes@oesa.org and 248.534.2204).

As always, please feel free to contact me directly at 248.631.9449 or jfream@oesa.org.

With much hope,

Julie A. Fream President and CEO OESA

OESA News - 2020 Third Quarter

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OESA SUPPLIER PULSE

Supplier Innovation is Vital to Industry Progress Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

Innovation is at the very heart of the automotive industry. Despite the current challenges the industry is facing due to the global pandemic, innovation races forward. Much of this progress is fostered by continued research and development across a broad range of technologies to improve efficiency, safety, affordability and utility.

With each successive product launch, one should marvel at the creativity and technical progress on display. Such progress comes from asking challenging questions and deploying new approaches.

Entrepreneurship is at the heart of such progress, leveraging the consumer, technical and strategic insights from across the industry - with a continued focus on speed to market.

The industry continues to change, transitioning from the past vertically-oriented, top-down hierarchical approach toward a more lateral, collaborative peer-to-peer ecosystem. Recent history reminds us that not every program or feature is a commercial success, yet the supplier community increasingly recognizes the value of intellectual curiosity and continual learning. Many of these calculated risks provide learning opportunities to achieve the next breakthrough.

The ACES (Autonomous - Connected - Electrified - Shared) industry mega trends continue to exert influence on future business strategies. This includes a dramatic shift from hardware toward software, as evidenced by dramatic moves most recently by Volkswagen’s Audi brand, under its Artemis group and Toyota’s Woven Planet unit.

Software as Vital Industry Differentiator

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OESA SUPPLIER PULSE Moreover, the industry offers dramatically different approaches between traditional and emerging automakers, offering both risk and reward. New customer types can be demanding, yet offer new approaches while leading to a greater level of understanding and competency to compete for future business.

On this front, the dramatic improvements in the affordability of computing power have become enablers for new features and business models for those firms with the vision to see such opportunities and the know-how to execute on such plans. The new Ford Bronco offers a number of creative features that blend consumer electronics functionality with tracking of the vehicle during offroad adventures to record and share via social media.

OESA Supplier Barometer: Current Opportunities Based on the current business environment, what do you believe your biggest opportunities are at the moment?

New business opportunities/conquest

Comments (Selected):

24

Decrease in competition

23

New Technologies/New Products

•

Immediately: Keep everyone safe to re-organize for lower volumes and come out stronger when volumes return. Over 6 months: Market test opportunities as OEM's look to reduce costs. Potential acquisition of struggling/cash strapped suppliers/competitors.

•

Better internal collaboration as there has been exponentially more direct communication inside our entire organization.

This will pay dividends more than we realize once out of the crisis.

•

Advancing our state of the art for new technologies while competitors idle R&D.

•

Provide continuity through COVID-19 crisis, in order to participate in recovery and grow market position after.

20

Revenue Streams outside of Automotive (Diversification)

15

Cost cutting/efficiency gains

15

M&A Opportunities

10

Reinforcing Relationships with Customers

10

Sourcing Localization

9

Maintaining finacial stability

8

Ease in Talent Acquistition

2 0

5

10

15

20

25

30

Response Count

Suppliers are looking to gain market share through business conquest initiatives, M&A, or leveraging new technological development. Responses also show high levels of diversification efforts.

Q2 2020 OESA AUTOMOTIVE SUPPLIER BAROMETER

Link to comments

As the industry continues to retrench and emerge from the impact of the pandemic, new approaches offer an opportunity to surpass expectations and realize gains. Partnerships are a vital pathway to gain insight and expertise while reducing risk. To take this further, the mobility ecosystem offers organizations an opportunity to partner with and learn from a broad range of players with unique expertise. While no single organization has the means to invest in every area of technology, partnering can offer offer the oportunity to share cost while reducing risk.

In closing, the pandemic has created new challenges and accelerated some opportunities driving suppliers to do more with less. Nearly all auto makers are working with their venture capital arms to foster innovation and gain awareness in scouting technology. Suppliers have cost-effective opportunities to realize gains with little or no expense by using new approaches.

Contact Mike Jackson to learn more about automotive supplier sentiment. He can also provide information on economic and industry trends, as well as the Chief Financial and Chief Purchasing Officers Councils.

OESA News - 2020 Third Quarter

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OESA EVENTS

OESA App: The Latest in Events and Councils Stay up-to-date on the latest OESA events, council meetings and industry information with the OESA mobile app.

The OESA app is available in the App Store & Google Play Store. Members can use their OESA username and password to log in to the app.

CLICK HERE for more details.

Data Security and Shop Floor Integration/IIoT August 6 | 10:00 - 11:00 a.m.

OESA members and industry guests are invited to join OESA and Baker Tilly on August 6, 2020, for the webinar, “Data Security and Shop Floor Integration/IIoT.” Due to the rapid adoption of cloud storage, affordable sensors and software as a service, organizations are finding new value in integrating the shop floor with enterprise system technology.

Competing in the world of Industry 4.0 depends on a manufacturer’s ability to adopt technologies like machine learning and analytics, artificial intelligence (AI), Industrial Internet of Things (IIoT) devices, and automation – then scale those technologies across the organization.

Yet relying more on complex technology comes with risk if not managed properly. Clearly understanding how data is accessed and moved across an organization is critical to security.

During this hour-long webinar Peter Pearce, principal, and Brian Nichols, director - risk, internal audit and cybersecurity, Baker Tilly, will share I4.0 enterprise security examples and lessons learned, as well as how to: •

Assess your organization’s I4.0 security capability and competitiveness

•

Improve your understanding of how to layer security into applications and integrations

There will also be an opportunity for webinar participants to ask questions.

Manufacturing CIOs, analysts, application support teams, security, risk and audit professionals will benefit from participating in this webinar.

Exclusive Content Provider:

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OESA EVENTS

FCA North America Town Hall August 12 | 9:00 - 11:45 a.m.

OESA will host the 14th Annual FCA North America Town Hall meeting for OESA members and FCA suppliers on Aug. 12, 2020, beginning at 9 am ET in a virtual format. This is an opportunity for current and prospective FCA suppliers to hear directly from key FCA decision makers, as well as engage in private business conversations with commodity buyers.

Carl Smiley, chief purchasing & supply chain officer, FCA, will share a FCA company overview, Martin Horneck, head of purchasing and supply chain management, FCA - North America, will share a North American purchasing and supply chain update, and Amy McLain, head of supplier relations and risk management, FCA, will share an update on FCA’s supplier relations.

Following the formal presentations, Smiley, Horneck and McLain will participate in an interactive Q&A session. Additional FCA commodity directors and managers will be available for one-on-one virtual networking from 10:45 a.m. – 11:45 a.m. ET. Networking Sponsor:

Executive Sponsors:

Supporting Sponsors:

OESA members and industry guests may register for all OESA events at www.oesa.org.

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

OESA News - 2020 Third Quarter

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OESA EVENTS

Leveraging Capital and Collaboration to Accelerate Innovation August 26 | 8:30 - 11:00 a.m.

The pandemic has taken a toll on the economy and auto industry, driving suppliers to do more with less. Innovation is the fuel to delight customers, outpace competitors and drive out-sized returns on investments – all the more vital in a challenging market environment. Suppliers must assess and prioritize investments in the context of new market realities, while taking calculated risks.

To help suppliers learn how firms are reinventing processes to deploy new approaches and leverage strengths, OESA invites members and industry guests to attend a virtual briefing, Leveraging Capital and Collaboration to Accelerate Innovation on August 26, 2020.

Leading industry analyst, Itay Michaeli, director, U.S. autos & auto parts, Citi Research, will kick-off the discussion with a detailed sector analysis. He will share the Wall Street perspective on supplier innovators funding advanced technologies to position for growth through the industry recovery.

Steve Wybo, senior managing director, Conway MacKenzie, will discuss the impact of growing market pressures across the global automotive sector, highlighting a new M&A paradigm to allocate capital and realize diversified investment strategies.

Jeff Stefan, automotive & emerging technology counsel, Varnum Law LLP, will give a debrief on the U.S. regulatory framework for autonomous vehicles, highlighting dueling federal and state roles. He will also detail changes needed to accelerate the technology and guide suppliers through an open innovation ecosystem.

Supplier executives, Don Maahs, global vice president, sales & marketing, Magna / Cosma, David Brink, president and COO, IEE Sensing, and Jason Furr, executive director, sales, Roush, will share how suppliers are deploying new technologies and dynamic approaches to speed decision making, add value and fuel success.

Vic Peltola, global purchasing strategy, Ford Motor Company, will share his unique perspective and lessons learned through global efforts to foster innovation and speed technology adoption.

Q&A panels will follow each formal presentation session.

Sponsor:

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OESA EVENTS

FCA 21st Annual Supplier Diversity MatchMaker Virtual Event September 17 | 9:00 a.m. - 3:00 p..m.

FCA will host its 21st Annual Supplier Diversity MatchMaker Event on September 17, 2020, beginning at 9 a.m.ET, powered by OESA’s virtual meeting platform.

The event will provide diverse supplier businesses access to FCA Tier 1 suppliers as well as an opportunity to network with FCA buyers. This event will also provide educational seminars to support business growth and provide access to several Michigan-based diversity councils and chambers of commerce to cultivate networking and business development.

Suppliers have the opportunity to host exhibit space with other supplier attendees visiting them to network, and share capabilities for a potential business opportunity match. Each exhibitor will be able to build out their own virtual booth. Each virtual booth can have a maximum of three representatives and includes: • Supplier leadership contact information • Description of their company, products and/or services • Downloadable product information or presentations • Proof of minority certification • Exhibitors must designate if they are a “Direct or Indirect” supplier as well as identify their business as (where relevant):

o MBE - Minority Business Enterprise

o WBE - Women's Business Enterprise

o VBE - Veteran Business Enterprise

o SDV - Service Disabled Veterans

o DOBE - Disability Owned Business Enterprise

o LGBTBE - Lesbian, Gay, Bisexual, Transgender Business Enterprise

o SBU - Small Business Unit

o HUB - Historically Underutilized Business

o HFS – FCA High Focus Supplier

o CGI - Collaborative Growth Initiative Supplier

o DCC - Diversity Council/Chamber of Commerce Exhibitors: There is no cost for current OESA supplier members to have a virtual exhibit space. The cost for the virtual exhibit space is $500 for non-OESA members. Non-OESA members can waive the exhibit fee by joining OESA and paying 2021 membership dues with membership going through December 31, 2021. For information about OESA membership, contact Erin Schrieber at 586.524.0436 or eschrieber@oesa.mema.org. The deadline to register for a virtual exhibit space is September 4, 2020.

Non-Exhibiting Attendees: All attendees will have the opportunity to visit exhibitors in a virtual tradeshow environment with the ability to have private video connections for 1:1 networking with suppliers and FCA buyers. The event will also feature on-demand presentations including: FCA, National Business League, OESA and others. OESA members and industry guests can register at a cost of $50 per person on or before September 10, 2020 and $75 per person after.

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WELCOME NEW OESA MEMBERS 6th Avenue Group

313 North Plankinton Ave | Suite 207 Milwaukee, WI 53203 www.6thavenuegroup.com Member Representative: Tom Schneider - COO and CoFounder Alternate Representative: Kim Korth - CEO and CoFounder

FTI Consulting, Inc. 555 12th Street NW Suite 700 Washington DC, 20004 www.fticonsulting.com

Member Representative: Neal Ganguli – Senior Managing Director Alternate Representative: Tania Noel

Precision Metalforming Association 6363 Oak Tree Blvd Independence, OH 44131-2556 www.pma.org/home

Member Representative: Michael Vohland – VP of Sales

Tune In! On the latest episode of Automotive Insiders, Steve Horaney, Vice President, Membership and Sales, OESA, discusses how suppliers and affiliates can become members of OESA to take advantage of unique member benefits.

Click here to listen

For membership information, contact: Steve Horaney Vice President, Membership and Sales 248.430.5969 | shoraney@oesa.org Erin Schrieber Manager, Membership Recruitment and Development 248.430.5970 | eschrieber@oesa.org Adam Slaman Manager, Sponsorship Sales and Membership Development 248.430.5958 | aslaman@oesa.org 8 │ OESA News - 2020 Third Quarter

OESA EVENTS

Upcoming OESA Webinars Aug. 6

Data Security and Shop Floor Integration/IIoT

Aug. 12

FCA North America Town Hall

Aug. 26

Leveraging Capital and Collaboration to Accelerate Innovation

Upcoming Council Meetings (via Webinar): Aug. 11

Enviroment, Health, Safety, and Sustainability Council

Aug. 13

Chief Purchasing Officer Council

Aug. 18

Legal Issues Council - 3Q Segment 2

Aug. 19

Human Resources Council - 3Q Segment 2

Upcoming 2020 OESA Town Hall Meetings Mark your calendar for the Members-Only OEM Town Hall Meetings via virtual format.

Aug. 12

FCA North America Town Hall

Sept. 9

Honda Town Hall - Save the Date

Nov. 19

Nissan Town Hall - Save the Date

Dec. 3

Ford Town Hall - Save the Date

OESA News - 2020 Third Quarter

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Original Equipment Suppliers Association 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 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