OESA News 2020 - Fourth Quarter - Edition 1

NEWS Original Equipment Suppliers Association

2020 Fourth Quarter │ Edition 1

4Q Mobility Supplier Forum October 13, 2020

IN THIS ISSUE...

1 The Suppliers' Voice 2 Supplier Barometer 4 RSM Supplier Barometer Commentary 6 Technology Update

8 Guest Column: Lockton 10 Guest Column: Hinduja Tech 12 OESA Events 17 Guest Column: Capgemini

18 OESA Council Highlights 20 New OESA Members 21 OESA Event Calendar

An inspired alliance Lockton Companies is pleased to announce a new alliance with insurance brokerage firm Birwood Services Group. Headquartered in Detroit, Birwood is a certified minority-owned business enterprise.

And while we are not the first broker to partner with an MBE, we believe you’ll see that our partnership is unrivaled in the industry.

Birwood and Lockton share the same entrepreneurial spirit and passion for service. Our shared commitment is also our first step toward creating true diversity in the insurance and financial services industries.

Working with Birwood, we will protect your interests. And we’ll create opportunities where they have never existed before.

birwoodsg.com | lockton.com

© 2020 Lockton Companies. All rights reserved.

Voice

The Suppliers’

The OESA team is excited to host the virtual 2020 Automotive Supplier Conference: Journey Back to the Future on November 9-11, 2020.

This year’s annual outlook conference will feature industry executives, thought leaders, analysts, and political commentators as they share their perspective on the future of the automotive supplier industry:

John Absmeier

Michael Barone

Jeff Jorge

Larry Keyler

Doug L. Parks

Michael Robinet

Lear Corporation

Baker Tilly

General Motors

Journalist

RSM US LLP

IHS Markit

Jonathan Capehart

Elaine Coffman

Kevin Depew

Adam Jonas

Shad Khan

Bill Long

John McElroy

Chris Nielsen

Bryan Salesky

Wolf-Henning Scheider

Don Walker

Ann Wilson

Journalist

Flex-N-Gate

Argo AI

Lockton Michigan

MEMA

RSM US LLP

Journalist

Magna International

Morgan Stanley

Toyota Motor North America

MEMA

ZF Friedrichshafen

We hope you will join us as we discuss the “Journey Back to the Future” for automotive suppliers and the mobility community. Registration is open and available to everyone.

Click here to register and access the full agenda.

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

Julie A. Fream President and CEO OESA OESA News - 2020 Third Quarter

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OESA AUTOMOTIVE SUPPLIER BAROMETER

Supplier Sector Restart Shows Resilience, Yet Pandemic Weighs on Sentiment Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

According to the Q3 2020 OESA Automotive Supplier Barometer Index (SBI)TM – a gauge to measure North American automotive supplier executive sentiments – the coronavirus pandemic continues to impact the outlook for the automotive supply base. Results posted a slightly positive reading of 53 for the period, three points above a neutral level of 50. Despite a 38-point rise in the SBI from Q2, the latest survey reflects only a modestly favorable gain in optimism for the 12-month outlook from Q2 2020 to Q3 2020.

A substantial portion of the Q3 SBI uncertainty is attributed to the pandemic’s impact on the U.S. economy and poor sales of programs supplied. Responses show a significantly polarized outlook, with 47% of responses indicating an improved outlook from Q2 while 36% of responses indicated their outlook deteriorated further. The outlook for firms with less than $1 billion in annual revenue improved, while the largest firms’ outlook remained essentially unchanged.

Additional detail in the Q3 2020 OESA Supplier BarometerTM, sponsored by RSM US LLP, focused on Talent and Human Resources. The results indicate: • Skills gaps, as well as gaps in company culture, narrowed while suppliers embrace changes needed to close such gaps further.

• The pandemic has cooled regional voluntary turnover rates throughout North America, however pockets of high turnover remain, particularly in Canada.

• Hourly workers have become the biggest hiring concern in North America, as companies struggle to get hourly employees to return to plants and find replacement workers.

• The pandemic has profoundly impacted how and where people work, with much more flexibility anticipated in future work schedules. Executive leadership and finance/accounting roles have outperformed their peer groups in a work-from-home setting.

"Despite the unprecedented impact of the pandemic, the supplier sector has played a pivotal role in leading the industry and its expansive talent pool through a period of profound volatility, empowering networks of distributed teams and onsite operators to achieve high levels of safety, efficiency and productivity in the face of severe headwinds,” said Mike Jackson, executive director, strategy and research, OESA. “Technology has helped to increase communication and flexibility, accelerating virtual collaboration that will continue to fundamentally alter future organizational and talent paradigms,” Jackson continued. “Leading suppliers remain focused on employee development while aligning with a more nimble company culture to foster innovative new approaches and speed outcomes.”

The Q3 SBI chart and a full copy of the Supplier Barometer results are available on the OESA website at: https://www.oesa.org/resource/oesa-automotive-barometer-studies.

RSM US LLP commentary on the Q3 2020 OESA Supplier BarometerTM results can be found on page 4.

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OESA AUTOMOTIVE SUPPLIER BAROMETER OESA Supplier Barometer: Q3 2020 Results Describe the general twelve-month outlook for your business. Over the past three months, has your opinion become…?

Current Supplier Outlook (Share of Respondents) Q2 2020

60%

Supplier Barometer Index: (SBI and 6m Average) 90

Q3 2020

80

40%

60

53

Lehman Collapse

50

20%

40

Jan-2020

Jan-2019

Jan-2018

US Trade War Escalates

Jan-2017

Jan-2016

Jan-2015

US Fiscal Cliff

Jan-2014

Jan-2013

Japan Tsunami/ Grexit Crisis

Jan-2012

Jan-2010

Jan-2009

10

Jan-2011

Euro Crisis Begins

20

Significantly more pessimistic

Somewhat more pessimistic

Unchanged

Somewhat more optimistic

30 Significantly more optimistic

0%

US Tax Reform

70

195 responses

The outlook for the third quarter is optimistic on net, with the SBI improving 38 points from Q2 to 53.

Risks remain however, as 30% of responses indicate a more pessimistic outlook than 3 months ago.

Q3 2020 OESA AUTOMOTIVE SUPPLIER BAROMETER

1

Roles/Responsibilities vs. Skills - Understanding the Gaps Given competitive hiring pressures and your effort to retain and capture new talent...

Are you evaluating the gaps between roles/responsibilities For those indicating ‘yes’ vs. skills in your organization?

What is the magnitude How willing are you to embrace the scope of each gap? of change needed to close each gap?

Not applicable 8% Not willing 3%

No gap/Aligned 9%

Wide gap 3%

No 21%

Very willing 43%

Moderate gap 31%

Yes 79%

Minor gap 57%

Somewhat willing 46%

Skill gaps are closing, with only 34% of respondents indicating they have moderate to wide gaps, down substantially from 60% last year.

Q3 2020 OESA AUTOMOTIVE SUPPLIER BAROMETER

2

Programs to Attract and Retain Talent How do you see this changing over the next 1 to 3 years?

Fewer Programs 9%

What are you doing to adapt your organization to each of these changes?

Increased Flexibility

13

Talent / Employee Development / Training

11

Evaluating Policies

8

Increasing Employee Visibility More Programs 50%

No Change 41%

4

New Recruiting Initiatives

3

Increased Benefits

3

Internships/Student Recruitment

3

Increased Communication

3

Change in Company Culture

2

No Specific Program Diversity

2 1

Number of Responses

Suppliers will continue to leverage their flexible work environments as a means of attracting and retaining talent.

Internal development and increasing employee visibility are other key themes.

Q3 2020 OESA AUTOMOTIVE SUPPLIER BAROMETER

3

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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RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER

4 │ OESA News - 2020 Third Quarter

RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER

OESA News - 2020 Third Quarter

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TECHNOLOGY UPDATE

Dieselgate, R&D Spending and Battery-Electic Vehicles Brian Daugherty Chief Technology Officer, MEMA 248.430.5966 │ bdaugherty@mema.org

Dieselgate nets a new settlement victim Volkswagen has paid more than $30 billion for its role in the Dieselgate scandal, and now Daimler has settled for just over $2 billion. One of the long-term effects is that European OEMs are faced with the continuing difficulty of meeting ever more stringent emissions requirements without the benefit of high mpg diesels. Just a few years ago, diesels were the powertrain of choice for approximately 50% of the EU passenger vehicle market. Post Dieselgate, sales of that powertrain option are now closer to 20%. This rapid change in diesel sales has dramatically increased the need for OEMs to sell (not just offer) full Battery Electric Vehicles (BEVs) and hybrids to make up the difference. It has also caused turmoil in the supply base due to the changing powertrain mix.

Surprisingly strong auto demand and automotive supplier R&D spending continues Although light vehicle sales clearly took a big hit in the second quarter due to the global pandemic, as things start to improve, they have been surprisingly strong. Research and development spending has also remained relatively high during this time as companies strive to maintain new product development schedules and look toward a much more complex and technology-filled future.

Anecdotally, as I’ve talked to our members in the R&D community, they are busier than ever and working hard to decide which projects warrant precious development resources. With so many different vehicle technology areas undergoing rapid innovation, this appears likely to continue for many years.

Battery Electric Vehicles and Electrification Although there were significant questions raised in the second quarter about how battery electric vehicle sales would fair in a pandemic and post-pandemic environment, those concerns (at least for now) have been largely put aside and the push towards electrification continues. Several large OEMs seem to be taking a more nuanced view of the BEV market and appear to be reducing their exposure. Since battery costs are considered to be one of the largest barriers to higher scale BEV adoption, a much longer life battery (over 500K miles or even the rumored 1M miles) could be used in several different BEVs over its lifetime – resulting in a much lower overall battery cost per mile.

Imagine buying a new vehicle as an unpowered glider and having your previous vehicle’s battery and powertrain installed after purchase.

General Motors still plans to launch at least 20 new BEVs by 2023. As an aside, they also plan to have SuperCruise technology available on over 22 vehicles within the same timeframe. VW’s electrification push continues – especially in Europe where the difficulties of meeting EU fuel economy standards with only 20% diesels in the powertrain mix is rapidly becoming apparent. They plan to spend over $35B by 2024 to develop and launch BEVs. Ford is gearing up to launch their Mustang Mach-E in late 2020 which will be followed by a battery electric version of the F-150. The large OEMs will have significant competition in the BEV market from Tesla – who dominates the space today – as well as a number of start-ups.

6 │ OESA News - 2020 Third Quarter

TECHNOLOGY UPDATE One of those start-ups is Nikola and I’ve had the opportunity to have several discussions with them over the last few months. Although Nikola has been known for its development efforts regarding heavy-duty battery and hydrogen fuel cell trucks, they recently announced that they will build a light vehicle named the “Badger” in partnership with an existing OEM. The Badger pick-up truck is planned to have 600 mile range and 455 hp by using both a battery and a hydrogen fuel cell. Look for an OESA event with Nikola and their OEM partner this Fall.

Lucid Motors has announced that their planned Lucid Air BEV sedan will have over 500 miles of range with charging rates of 20 miles per minute using a new 300 kW charging station. By comparison, the average rate for U.S. home use is about 1.2 kW per hour (10,766 kWh/year in 2015), so a 300 kW charger will have a temporary electrical grid demand equivalent to about 250 homes. Charging stations containing multiple chargers of this throughput level will require significant local grid infrastructure along with local battery storage or other innovative technologies to smooth the peaks and valleys of electrical demand.

Clearly, the race to stand out, differentiate products, and gain market share is continuing in the fully electric vehicle space. Some of these plans will pan out and others will not, but either way it will be exciting to watch.

Contact Brian Daugherty to learn more about new vehicle technology trends and their impact on the industry. He can also share information about the quarterly Mobility Supplier Forums held in Silicon Valley and the OESA Advanced Technology Council. Both are designed to keep industry stakeholders informed of new vehicle technology.

OESA News - 2020 Third Quarter

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GUEST COLUMN

Breaking barriers through diversity Lockton announces alliance with minority-owned broker For decades, the automotive industry has been sharpening its focus on supplier diversity.

Elaine Coffman

President Lockton Michagan ecoffman@lockton.com

As a supplier to this industry, know that your customers are watching, now more than ever. In many cases, they prescribe your minority-spend requirements, “grade” your response and significantly weight the amount of minority-spend as part of your vendor performance review. If your supplier diversity efforts don’t meet their expectations, you stand to lose business.

When it comes to your risk management and employee benefits needs, however, finding a minority-owned vendor with scalability and industrial expertise has been challenging — until now. In the later part of 2019, Lockton Companies began working to develop a new relationship that would begin to drive real change in the insurance industry. While we were in the process of constructing our plans for remodeling our diversity initiatives, George Floyd’s death occurred, and thus heightened the need, driving Lockton to move even more urgently. Lockton recently announced a new partnership with Birwood Services Group, LLC — what we’re calling the Lockton Alliance.

8 │ OESA News - 2020 Third Quarter

GUEST COLUMN

Birwood is a joint venture between the Founders Series of Lockton Companies and Birwood Holdings, LLC, a minority-owned business entity (MBE) based in Detroit, Michigan. Created to fill a void in the insurance marketplace and provide opportunities to underserved communities, Birwood is a full-service insurance broker specializing in risk management and employee benefits.

Kenneth Hurtt, CEO of Birwood, has more than 25 years of experience in the insurance industry as a business owner and executive, plus he’s an entrepreneur with experience in operating other MBEs. I work closely with Ken as part of the Birwood leadership team and am a member of the board of directors. The alliance we’ve created between Lockton and Birwood is step one in our broad strategy to change the trajectory of the insurance and financial services industry from a diversity perspective.

Building a business that is uniquely positioned to

service multinational complex businesses as well as underrepresented communities embodies our goals to take care of Lockton’s major stakeholders: our clients, our communities and our Associates.

Birwood and Lockton share an entrepreneurial spirit and service focus, along with similar cultures and aspirations to change the insurance landscape.

Together we will provide services, jobs and growth opportunities via advocacy, education and health.

Ken Hurtt

CLU, RHY, REBC President, CEO 248.841.8880 k.hurtt@birwoodsg.com

BIRWOOD DIRECT

• Full suite of risk management, benefits and human capital, and retirement services • Procurement recognition services

BIRWOOD ALLIANCE

BIRWOOD DIRECT

BIRWOOD ALLIANCE

• Companies with 25200 employees

DEI CONSULTING

• DEI strategies • DEI analytics

• DEI leadership • DEI workshops

For more information: birwoodsg.com info1@birwoodsg.com

• Full suite of risk management, benefits and human capital, and retirement services • Combined service delivery with Lockton specialty resources • Companies with 200+ employees • Diversity, equity and inclusion practice

DIVERSITY, EQUITY & INCLUSION CONSULTING

INDUSTRYRELATED MBE VENDORS

• Procurement recognition

INDUSTRY-RELATED MBE VENDORS

• Proprietary database aligns with clients’ supplier diversity initiatives

© 2020 Lockton Companies. All rights reserved.

OESA News - 2020 Third Quarter

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GUEST COLUMN

HINDUJA TECH: POWERING EV INNOVATIONS. BUILDING A BETTER TOMORROW Kartik Hasmukhrai Shah, Engineering and Business Development Manager +1 248 938 3829 | kartik.shah@hindujatech.com

As the world moves towards the ‘Connected, Autonomous, Shared and Electric’ path, there is always a need for OEMs to prepare themselves for a disruptive and greener future. A major push towards EVs is led by public transportation units and end-mile connectivity vehicles, who are in need of Fleet cars, E-Buses, 3 wheelers and 2 wheelers. OEMs are presented with huge opportunities in every aspect of the EV Ecosystem.

Opportunities come along with challenges especially with delivery dates planned on stringent timelines. And, it is obvious that the OEMs would be on a lookout for a reliable EV Engineering Service Company to entrust their end-to-end product development requirements to focus on faster time to market. Hinduja Tech (HT) is in constant interaction with leading OEMs, and during one such interaction it landed up with its first EV assignment, and from then on, there has been no looking back for us. We have evolved from our experiences, and this evolution gives us opportunity to work in various EV projects and to develop EV sub-systems from scratch (battery management systems, DC-DC Converter Motor Controller, and Charging Systems).

Hinduja Tech today is a full vehicle development engineering and testing partner for electric and hybrid vehicle development. We can perform:

Our service offerings range from product / Duty cycle definition, architecture definition, system selection & matching, performance simulation, supply chain integration, detailed engineering, vehicle integration, prototyping, physical testing to ADAS integration.

As both OEMs and new entrants face increased competition, and to thrive in this market, manufacturers need to be realistic about their capabilities, and what they can offer. It is imperative for them to include a long-term strategic partner to approach changing demands of the automotive market. Independent from OEMs and suppliers, Hinduja Tech is an expert in searching and integrating the right components keeping in mind the needs of our clients or co-developing new parts. HT is your right partner to build a greener tomorrow!

Powering EV Innovations. Building a Better Tomorrow!

10 │ OESA News - 2020 Third Quarter

GUEST COLUMN

Power Electronics Capability Specializing in Automotive!

Drivetrain

Battery

Motor Controller

BMS

Wiring Harness (LV/HV)

ECU / Vehicle Network

Charging On-board

DC - DC Convertor

Our Electric and Embedded Services: Software Development

Benchmarking

AutoSAR / Non AutoSAR

Requirement Planning Architecture / Concept / System Design

Functional Safety (ISO 26262)

Plant Modelling (MATLAB)

Hardware / Software Integration

DFMEA / PFMEA / DVPR

Enclosure Design / Mechanical Design

Hardware Design

Thermal Management / Heat Sink Design

Prototyping / A Sample Verification & Validation (MIL / SIL/ HIL) Unit Testing Integration Testing Vehicle Level Testing

PREF ERRED EV ECO SYST E M PART N E R

Hinduja Tech, part of the multi-billion dollar Global Business Conglomerate, Hinduja Group, is the integrated Product Engineering and Digital Technologies Solutions Provider for the mobility industry with global delivery model. As a partner of choice, Hinduja Tech works with leading automotive organizations (OEMs & Tier-X Suppliers) and disruptive mobility players in the USA, Mexico, Europe, Japan and India.

Hinduja Group, headquartered in UK, has its presence in over 35 countries and employs a total of 150,000 people. Hinduja Group has significant presence in Commercial Vehicle Engineering & Manufacturing verticals.

Reach us at info@hindujatech.com

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.

It is available in the App Store & Google Play Store. Log in to the app with your OESA username and password.

CLICK HERE for more details.

Navigating the New Norm for Automotive Product Safety October 2 | 1:00 - 2:00 p.m.

OESA invites members and industry guests to the webinar, “Navigating the New Norm of Automotive Product Safety,” on Oct. 2, 2020, at 1 p.m. ET. This session will focus on new expectations related to product safety in existing and emerging technologies, and tools available to help mitigate legal risks accompanying the heightened National Highway Traffic Safety Administration (NHTSA) scrutiny.

With liability lurking in every corner, and the life of vehicles increasing, it is important for manufacturers to quickly recognize the impact of safety and understand predictive tools that can help prevent or mitigate noncompliance and safety defects.

Jennifer Dukarski, shareholder, Butzel Long, and Renee Stephens, vice president automotive, We Predict, will help attendees gain a better understanding of: • The direction government agencies will head with automotive manufacturers in the coming years with respect to product safety.

• The scope of legal liability as a manufacturer for late vehicle life issues.

• Techniques to reduce risk and reaction time when safety issues arise in the field, especially with emerging technologies.

Sponsored By:

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.

12 │ OESA News - 2020 Third Quarter

OESA EVENTS

Be Prepared for the Next Crisis October 6 | 2:00 - 3:00 p.m.

The coronavirus pandemic has reinforced that manufacturers with alternative production locations are more agile, flexible and better positioned to adjust to threats. In response, OESA will host the webinar, “Be Prepared for the Next Crisis” on Oct. 6, 2020, at 2 p.m. ET to explore key risk factors auto sector manufacturers need to be aware of for their own production as well as up and down the supply chain.

JP McDaris, director, business development, Entrada Group, will evaluate the benefits of Mexicobased manufacturing as part of a global production footprint with a focus on key strengths including proximity, cost-competitiveness, capable workforce and tariff-free production. He will also discuss changes in the newly adopted USMCA agreement that make Mexico production even more attractive for the North American export market.

Sponsored By:

IATF 16949: Current Challenges and Future Trends October 8 | 10:30 - 11:30 a.m.

As the industry recovers from recent disruptions, automotive suppliers are focused on adjusting operations to protect their teams in “the age of COVID-19” while ensuring customer requirements continue to be met, especially related to maintaining their IATF 16949 certification status. To help suppliers understand current IATF requirements, OESA is hosting the webinar “IATF 16949: Current Challenges and Future Trends,” on October 8, 2020, starting at 10:30 a.m. ET. In this session, Cathy Fisher, president, Quistem, LLC, will address uncertainties and dispel myths related to maintaining the IATF 16949 certification of Quality Management Systems (QMS). Current challenges affecting IATF 16949 certified automotive suppliers will be discussed, including: • How the current IATF Global Waivers may impact your organization’s annual IATF 16949 certification audit.

• Preparation for the upcoming IATF 16949 re-certification cycle.

• Leveraging your organization’s management systems (both Quality and Safety), to overcome operational disruptions caused by COVID-19.

This session will also explore evolving trends related to automotive quality management systems that will impact how automotive suppliers utilize their QMS in the future. Prior to the session, attendees will be surveyed on their highest priority IATF 16949 QMS and Fisher will provide actionable guidance to address these priorities.

Exclusive Sponsor:

OESA News - 2020 Third Quarter

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OESA EVENTS

4Q Mobility Supplier Forum October 13 | 1:00 - 3:30 p.m.

The Original Equipment Suppliers Association (OESA) has partnered with Bain & Company and Foley & Lardner LLP to host a virtual “Mobility Supplier Forum” on Oct. 13, 2020, at 10 a.m. Pacific Time/1 p.m. Eastern Time. The Mobility Supplier Forum typically 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.

Mike Overly, partner, and Vanessa Miller, partner, Foley & Lardner LLP, will explore the emerging cybersecurity trends, regulations, and risk mitigation for liability as they impact the development of connected mobility technology. Beyond issues related to the development and launch of a particular component, they will cover integration considerations as components are incorporated into broader assemblies and vehicles. They will share their experiences working with automotive suppliers and other manufacturers as well as lessons learned through real-world issues, including how to navigate regulatory hurdles, risk mitigation, and best practices for litigation avoidance.

Tom Wendt, partner, and Mark Gottfredson, partner, Bain & Company, Inc., will share an insightful perspective from Silicon Valley. They will explore how trends, funding and the start-up landscape around autonomous, connected, electric and shared mobility concepts is changing, emphasizing the importance of external innovation for suppliers to complement existing innovation activities. They will also share lessons learned, key success factors of corporate innovation approaches and a unique model based on partnering and eco-system collaboration to de-risk early stage innovation and later M&A. Key takeaways include: • A better understanding of cybersecurity issues that will impact the connected mobility industry.

• Understand the funding and start-up landscape impacting autonomous, connected, electric and shared mobility concepts.

• Lessons learned and key success factors of corporate innovation approaches.

• Perspective on partnering and eco-system collaboration to de-risk early stage innovation.

Presenting 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.

14 │ OESA News - 2020 Third Quarter

OESA EVENTS

Harbour Results, Inc. Automotive Tooling Update October 14 | 9:00 a.m. - 12:00 p.m.

The Original Equipment Suppliers Association (OESA) and Harbour Results, Inc. (HRI) will host the 2020 Automotive Tooling Update virtually on Oct. 14, 2020. This year has been unprecedented for the global marketplace and the industry will be feeling the impact through 2021 and, potentially, beyond.

This year’s event is shortened to focus on the automotive tooling market intelligence and insights critical for the health of individual shops and the North American manufacturing industry today and in the future.

With the presidential election on the horizon, Omar Nashashibi, founding partner of The Franklin Partnership will review how the presidential race outcome will impact the economy, manufacturing, tariffs and trade.

In addition, Cara Walton, engagement manager, Harbour Results, Inc. (HRI), will provide an economic forecast that looks at the affect the COVID-19 pandemic has had on the marketplace as well as what to expect in the future.

Finally, Laurie Harbour, president and CEO, HRI, will provide an automotive industry forecast and how it will impact the entire supply chain, including tool and die makers. This will include a tooling forecast for the next several years as well as best practices shops should be utilizing to recover from the COVID crisis.

Executives from tool shops who have or are interested in automotive business including Tier 1 suppliers, OEM purchasing, and sales, marketing and engineering professionals in the automotive mold and die industry should plan to attend. The information shared during this virtual event will help companies across the entire automotive supply chain as they plan for the future.

Executive Sponsor:

Supporting Sponsor:

OESA News - 2020 Third Quarter

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OESA EVENTS

Master Class Workshop: How to Lead an Effective Meeting October 16 | 8:00 - 11:30 a.m.

OESA invites member employees to attend the "OESA 2020 Master Class Workshop: How to Lead an Effective Meeting” on October 16, 2020, via Zoom. The OESA Master Class Workshops offer customer-facing supplier professionals an in-depth exploration of relevant professional development topics in a hands-on setting. This series is designed to help all functional roles develop better customer engagement skills.

The October 16 workshop will focus on the topic of “How to Lead an Effective Meeting.” Lindsay Gross, director, facilitation services, Event Garde, will share key areas to focus on before, during and after a meeting to ensure that it is effective. She will discuss how leading effective meetings is a skill you can learn and focus on the level of preparation, especially when you are uncomfortable. In addition, there will be small breakout groups to help apply the tools learned during the session.

OESA 202 Strategic Insights: Connectivity Growth Strategies October 29 | 1:00 - 3:30 p.m.

Connectivity is fueling supplier growth opportunities through new feature content and business models that offer enhanced user experience and value derived from unique data streams. Leading suppliers are also looking to add value via process digitalization, which scales technology to empower employee teams and supply chain partners. These changes offer prospects for explosive growth, flexibility and transparency yet introduces new risks which need to be addressed.

OESA invites supplier industry executives, analysts, and strategy professionals to the OESA 2020 Strategic Insights Executive Briefing Series, “Connectivity Growth Strategies: Supplier Risks & Rewards“ on October 29, 2020, at 1 p.m. ET. Attendees will gain a detailed understanding of new opportunities and legal considerations vital for business planning to enhance competitiveness and mitigate compliance risks when dealing with connected technologies.

The OESA 2020 Strategic Insights - Executive Briefing Series offers fresh perspectives to contend with the dramatic pace of industry change, technology advancement and production sourcing dynamics.

Jason Coffman, U.S. automotive consulting leader, Deloitte Consulting LLP, Leon Nash, U.S. automotive cyber leader, and Nick Sikorski, product security strategy and solutions leader, Deloitte Risk & Financial Advisory, will explore new business models within the connectivity space.

Jennifer Dukarski, shareholder, emerging technology, media, intellectual property, data privacy & cyber, and Claudia Rast, shareholder, practice department chair of the intellectual property, cybersecurity, and emerging technology group, Butzel Long, will discuss safeguarding supply chains while transitioning from hardware to software.

Presenting Sponsors:

16 │ OESA News - 2020 Third Quarter

GUEST COLUMN

Digital Transformation Drives Customer Experience

By Daniel Davenport, Capgemini Before the pandemic, personal vehicle sales were slowing. Consumers were interested in ride sharing and public transportation as more people moved to urban areas and sought to decrease their dependence on privately owned cars. The industry was seeking solutions to changing mindsets and preferences by partnering or investing in ride-sharing companies or testing subscription ownership models. OEMs and suppliers were also beginning to see changing demands in the shift from ICE to EV powertrains and the requirements for manufacturing integrated solutions as opposed to individual components.

Then the pandemic hit and the change in consumer behavior has been more radical than any in modern memory. Many manufacturers shut down plants completely. OEMs stopped production lines. Dealerships struggled to rapidly adopt new procedures to keep their service centers open. Everyone looked to digital channels to offset the psychical distancing requirements of the shutdown.

Consumer preferences changed almost overnight. In our April global survey in 11 countries, we found health and safety concerns are prompting close to half of all consumers to use their personal car more frequently and make less use of public transport and shared-mobility services. Three-quarters of those who intend to purchase a car in 2020 will do so to gain better control over the hygiene and cleanliness of their mobility option. Younger age groups (<35 years of age) are the largest segment considering buying a new vehicle in 2020 â&#x20AC;&#x201C; a reversal of their historical preference to avoid vehicle ownership. Close to half of the consumers wanted to minimize visits to physical dealerships to compare deals (46%) and prefer the use of online channels for information search and purchase.

The drive to replace in-person purchasing with digital tools led to many OEMS and dealership needing to rapidly upgrade technologies and business operations to adapt to contactless commerce requirements. Suppliers can learn from that inflection point as we move into the next phase of the pandemic recovery. In particular, they should take notice of how customer expectations can quickly create new demand.

Changing market desires, on top of the larger shift to electronic vehicles, is creating the need for suppliers to become more integrated with their upstream clients. Ecosystems require tighter integration, digitally enabled tools, and collaboration platforms to allow for faster product development iterations and more agile demand planning. While there is a lag in consumer buying, suppliers have a unique opportunity to undertake this digital transformation and be poised to capture market share when buying confidence returns.

Reach out to us to discuss how we can help suppliers in the changing customer landscape.

Daniel Davenport

Martin Bilderbeck

Principal, Automotive

Client Executive, Automotive

daniel.davenport@capgemini.com

martin.bilderbeck@capgemini.com

OESA News - 2020 Third Quarter

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COUNCIL HIGHLIGHTS

Continue to Develop Your Next Generation of Talent in a Virtual Interactive Environment OESA Young Leadership Council 9 Now Accepting Nominations

OESA is seeking nominations for the ninth Young Leadership Council (YLC9). The virtual interactive leadership development program is designed to equip future leaders with the professional and personal skills, tools, best practices, and behaviors they need to confidently lead others and drive the performance of their team and the organization. When feasible, we will resume in-person meetings.

YLC 9 is open to current OESA regular and affiliate member companies only. Nominees can come from all functional areas, including finance, sales, marketing, manufacturing, human resources, purchasing, logistics, communications, and engineering.

Virtual Meeting Format: ● Personalized connection through live interactions with OESA facilitator, subject matter experts, CEO’s and executive speakers and classmates in the full cohort, and with smaller groups in virtual breakout rooms. ● YLC 9 Cohort will participate in developing their programming content with the guidance of the OESA facilitator. Their program content will be based on the issues that matter most today and in the future. ● Interactive peer-to-peer roundtable sessions enabling YLC members to build connections with each other and help meet each other’s individual needs. ● Hands-on exercises, group discussions, and polls to ensure engagement during the two years. ● Online learning providing an opportunity to bring people together who might otherwise have limited opportunities to connect face-to-face due to restricted travel. ● YLC 9 Virtual Kick-off Meeting is on January 26, 2021.

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COUNCIL HIGHLIGHTS Topics from Previous YLC Cohorts: ● Industry Related Insights ◦ MEMA Legislative Council and EHS&S Council findings ◦ Industry Supplier Barometer ● Coaching Techniques ◦ Empowering & managing teams ● Accountability ◦ Holding others accountable ● Change Management ◦ Resiliency in a VUCA world ● Influence and Negotiation ◦ Advocate ideas, building consensus and strong relationships with internal teams as well as customer and vendor stakeholders ● Emotional Intelligence ◦ Manage emotions, stress, and develop social awareness ◦ Leveraging different perspectives, skills, experiences and working styles ● Communication ◦ Open & effective communication with teams ● Work-Life Balance ◦ Self-care, mindfulness and setting boundaries Graduates leave the program better prepared for greater responsibility and equipped for the next step in their career.

The council fee for this two-year program is $3500 per individual council member. To nominate your candidate(s) to join the Young Leadership Council complete the nomination form before Dec. 31, 2020.

Early nominations are encouraged.

The YLC 9 Virtual Kick-off Meeting is on January 26, 2021.

For more information about the OESA Young Leadership Council, contact Keiyania Mann at 313.676.1670 or kmann@oesa.org.

OESA Tooling Council Workforce development, procurement practices, supply chain risk - tool makers face unique opportunities and challenges in the automotive industry. Awareness and understanding of customer trends throughout the supply chain empowers tool makers for success. The OESA Tooling Council delivers this vital information to members through expert presentations and facilitated peer dialogue.

Supported by Harbour Results Inc. the council shares the latest information during regular meetings.

This council meets twice a year including one meeting in conjunction with our annual HRI Automotive Tooling Update event. All members of the council attend the HRI Automotive Tooling Update complimentary.

Learn more about this council by visiting: https://www.oesa.org/councils/tooling-council OESA News - 2020 Third Quarter

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WELCOME NEW OESA MEMBERS Doiter Casting, LLC

400 Galleria Office Center, Ste 450 Southfield, MI 48034 www.doitercast.com Member Representative: Sri Bramadesam – President/CEO Alternate Representative: Rodrigo Valdes – Commercial Manager

ESG Automotive

1391 Wheaton Drive Ste. 700 Troy, MI 48083 www.esg-usa.com Member Representative: Steve Polakowski – President Alternate Representative: Cynthia Pepperman - Director of Finance & Accounting

Martin Technologies

55930 Lyon Industrial Drive New Hudson, MI www.haroldmartin.com Member Representative: Harold Martin – CEO Alternate Representative: Harold Michael - Automotive Wiring Supervisor Business Development

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

Tune In! OESA is pleased to present the "Automotive Insiders" podcast. Tune in for the latest in automotive and supplier industry news and learn how companies are thriving in the new mobility landscape.​ Click here to listen 20 │ OESA News - 2020 Third Quarter

OESA EVENTS Upcoming OESA Events (via Webinar) Oct. 2

Navigating the New Norm of Automotive Product Safety

Oct. 6

Be Prepared for the Next Crisis

Oct. 8

IATF 16949: Current Challenges and Future Trends

Oct. 13

4Q Mobility Supplier Forum

Oct. 14

2020 Automotive Tooling Update

Oct. 16

Master Class Workshop Series: How to Lead an Effective Meeting

Oct. 29

Strategic Insights Executive Briefing: Connectivity Growth Strategies

Upcoming Council Meetings (via Webinar): Oct. 7

Automotive Public Relations Council

Oct. 13

Legal Issues Council

Oct. 14

Young Leadership Council 7 - Graduation

Oct. 21

Chief Executive Officer and Enterprise Leadership Council

Oct. 29

Human Resources Council

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.

It is available in the App Store & Google Play Store. Log in to the app with your OESA username and password.

CLICK HERE for more details.

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

Dec. 1

Ford Town Hall - Details Coming Soon 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

Lexi Putman Member Services Representative

248.430.5964 abuford@oesa.org

248.430.5951 jlaskowski@oesa.org

248.430.5957 anapier@oesa.org

248.430.5959 lputman@oesa.org