OESA News 2021 - First Quarter - Edition 3

NEWS Original Equipment Suppliers Association

2021 First Quarter │ Edition 3

GM Purchasing/Supply Chain Town Hall March 3, 2021

IN THIS ISSUE...

1 On Your Behalf 2 Industry Update 4 OESA Automotive Supplier Barometer 6 RSM Automotive Supplier Barometer Commentary

8 Guest Column: Baker Tilly 10 Guest Column: Argus 12 Council Highlight

14 OESA Events 17 Welcome New Members 18 OESA Event Calender

On Your

Behalf

At the start of 2021, the industry had planned for a challenging and highlyproductive year. Little did we imagine the supply chain issues that we are now facing.

Even by mid-January, the industry was beginning to feel the strain of various issues. This is shown by the results of the 1Q OESA Automotive Supplier Barometer™, which highlighted the following concerns for the year ahead: • The inability to fulfill customer volumes Shortages of input materials, particularly semiconductors, has impacted the supply base’s ability to meet customer demand. The price of available commodities has risen drastically, squeezing margins.

• Implementation of new government regulations Suppliers continue to pay tariffs on Chinese imports and imported steel and aluminum; the new “green” initiatives have left the supply base uncertain of the changes they will have to make; and government stimulus has led to increased absenteeism on the plant floor.

After the Barometer survey was completed, additional challenges are further impacting the industry, including severe weather and power outages, resin allocation and increasingly congested ports on both the east and west U.S. coasts. Together with the MEMA Advocacy team, OESA is working on your behalf to address these and many other issues. We are monitoring the shortage issues and working with organizations at every step within supply chain to minimize the impact on suppliers. In Washington, D.C., we are working with the Biden Administration and members on the Hill to promote industry concerns.

The Biden Administration recently announced an urgent 100-day supply chain study to look at critical supply chain items, such as semiconductors and large-scale batteries for EV’s. Although this is positive news for North American industry, shorter term we will continue to be faced with the ongoing supply chain issues.

Once again, we are facing challenging times. However, by addressing these issues head on, we continue to be the manufacturing engine for the U.S. and the region. From a recent I H S study commissioned by MEMA, motor vehicle suppliers contribute almost 1 million direct jobs and 2.5% of GDP in the U.S. As we enter year-two of the pandemic, I encourage all of you to recognize the amazing contributions of your organizations and all that you do to keep people safe and working when faced with adversity.

Your contributions and leadership are appreciated, and it is an honor for OESA to champion your interests. Thank you for your trust and confidence.

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 - 2021 First Quarter

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INDUSTRY UPDATE

Capitalizing on "White Space" Opportunities Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

Automakers and suppliers are constantly evaluating the changing consumer needs to identify the potential for new product opportunities. Any portfolio gaps between existing products are commonly referred to as ‘white space’; representing a blank canvas of opportunity, so long as any new product offerings executed closely represent the genuine needs of consumers.

To explore recent or pending examples, consider the Jeep Gladiator, the Ford Mustang Mach-E, the Kia Telluride, the Chevy Trailblazer, the seven-passenger Jeep Grand Cherokee L, or the Hyundai Santa Cruz compact pickup among many others. What do they all have in common? They represent a variety of all-new light truck entries intended to grow market share and drive profitability by taking up residence in what was previously denoted as white space.

For a variety of reasons, consumers over the past decade have shifted away from passenger cars toward of a growing range of light trucks, including Pickups, Sport Utility Vehicles (SUVs) and Light Commercial Vehicles (LCVs) in the form of various Van offerings. Manufacturers are more than happy to comply with these shifting preferences, as light truck offerings tend to command far greater pricing power than passenger cars on average. Moreover, light truck portfolios benefit from more lenient fuel economy and emissions standards, which do not require as much costly technology investment to meet such targets, which further bolsters profit potential.

For this reason, many manufacturers have pruned their passenger car portfolios, meaning dealers would have fewer nameplates available for sale, unless new light truck entries are evaluated and introduced into the market. This is especially important for unibody light vehicles, where platforms are designed to accommodate a wide range of product types including passenger cars, crossover utility vehicles (CUVs) and others, as a means to reduce costs by achieving strong economies of scale. Recall that Ford’s C1 platform was also the basis for the Transit Connect as well as the now discontinued Focus sedan and C-Max Compact MPV. However, the phasing out of low margin passenger cars or other entries can dramatically reduce total platform volume and sabotage the business case for what had initially been profitable programs.

To counter this effect, Ford is pursuing a proven strategy of differentiation within its compact CUV portfolio. FCA took a similar path to portfolio expansion, as it successfully spawned unique entries on a common platform by pairing a more rounded and organic aesthetic for the Jeep Compass with a rugged two-box design for the Jeep Renegade that appeals to different consumers. Ford has 2 │ OESA News - 2021 First Quarter

INDUSTRY UPDATE already taken this approach even further by leveraging the Escape’s sleek modern exterior with a refined Lincoln variant in the Corsair CUV. Ford’s expansion introduces a much more capable Bronco Sport along with a more attainable lifestyle-oriented Ford Maverick compact pickup. Some may be skeptical of just how capable the Maverick will be once it arrives later this year, yet bear in mind this entry is not intended to compete with the rugged duty cycle of the larger, more robust full-frame Ranger entry. Maverick will leverage the same reinforced unitized platform as the well-received Bronco Sport, which in principle, served to underpin the Transit Connect a worthy competitor in the Compact Van category. The Ford Maverick is expected to succeed by offering the right blend of size and compact capability. The Ford Ranger and F-150 entries have continued to grow in size over successive model redesigns, offering extraordinary payload and towing capability that far exceed the needs of many consumers. In many markets, the Compact and Subcompact CUV/SUV categories have thrived at the expense of passenger cars as consumers are eager to realize capability and functionality within a more compact dimension and at a more affordable price point.

In this case, Ford also benefits considerably with its Mexican sourcing strategy, as the Bronco Sport and Maverick entries will capitalize on strong export volume. Mexico holds a wide range of free trade agreements that provide favorable terms to nearly 40 countries, making export opportunities especially attractive. Both programs are poised to gain from broad global demand for more capable and attainable compact CUVs as well as strong interest and very limited competition for a compact pickup.

New entries offer the opportunity for volume growth, yet without any sales history, knowing how to account for proposed planning volumes can be tricky. It is important to confirm a competitive vehicle set to the best of your ability. Moreover, it is key to understand markets where the entry will be sold, including export planning volumes over the lifecycle of the vehicle, considering the prospect for sourcing changes.

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

OESA News - 2021 First Quarter

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OESA AUTOMOTIVE SUPPLIER BAROMETER

Optimism Prevails in the Face of New Challenges Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

According to the Q1 2021 OESA Automotive Supplier Barometer Index (SBI) – a gauge to measure the sentiments of North American automotive supplier executives – continued strength in light vehicle demand offset the negative impact of component and raw material shortages that is impairing the ability of the supply base to fulfill customer volumes. Results posted a very positive reading of 62 for the period, 12 points above a neutral level of 50. The headline index decreased 5 points from the fourth quarter of 2020 but remains at a very strong level.

The Q1 2021 OESA Automotive Supplier Barometer, sponsored by RSM US LLP, focused on Production, Planning and Electrification. The results indicate: • • •

•

•

Continued issues related to the COVID-19 pandemic remain the greatest threat to the industry, however threat ratings continued to ease from the end of 2020.

Shortages of inputs, particularly semiconductors, has hampered the supply base to meet customers demands The primary internal and external production issues are related to supply chain constraints or disruptions, while the industry continues to struggle with labor shortages in both blue and whitecollar positions R&D spending is unchanged from last year, remaining at 4 percent of total sales. The advanced material technologies category remains the top priority for future investment, with powertrain technology becoming a much higher priority in comparison to last year Battery Electric Vehicle (BEV) program development is driving innovation across the supply base despite the lack of program profitability. Suppliers remain doubtful that BEV production will reach 10 percent of global production within the next 5 years

Suppliers continue to demonstrate exceptional resilience despite yet another wave of adversity, in the form of semiconductor and various other supply chain constraints. Suppliers are optimistic that demand levels will help deflect fallout from shortages and remain committed to drawing on innovation to find new ways to add value and reduce costs. Given dramatic increases in global BEV investments and program opportunities, leading suppliers continue to take steps to understand ways they can capitalize on this continuing shift, despite program profitability hurdles.

The Q1 SBI chart and a full copy of the Supplier Barometer results are available on the OESA website. Click here to view.

RSM US LLP commentary on the Q1 2021 OESA Supplier Barometer results can be found on page 6.

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OESA AUTOMOTIVE SUPPLIER BAROMETER OESA Supplier Barometer: Q1 2021 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)

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

Q1 2021

80

59%

60

40%

40

Jan-2021

Jan-2020

COVID-19 Pandemic

Jan-2019

Jan-2016

Jan-2015

Jan-2014

Jan-2017

US Trade War Escalates

Japan Tsunami/ Grexit Crisis

Jan-2012

Jan-2010

10

Jan-2011

Euro Crisis Begins

20

Jan-2013

30

1% 1%

Significantly more pessimistic

Somewhat more optimistic

Significantly more optimistic

0%

62

Lehman Collapse

50 18% 11%

Somewhat more pessimistic

22% 16%

12% 8%

Unchanged

20%

US Tax Reform

70

50%

Jan-2009

60%

Jan-2018

Q4 2020

80%

226 responses

The outlook for the first quarter declined slightly from prior quarter but remains at a very strong level.

The proportion of respondents indicating a more pessimistic outlook rose 6 ppts. to 19 percent.

Q1 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

1

OESA Supplier Barometer: Industry Threats What are the greatest threats to the industry over the next 12 months?

0%

20%

40%

60%

80%

100%

Average Rating Feb. Oct.

Continued issues related to the COVID-19 pandemic

3.4

2.9

Inability to fulfill customer volumes (component and raw material shortages)

3.8

5.3

Weakness in the U.S. Economy

4.4

3.5

Inability to address internal labor constraints

4.9

4.6

Implementation of new government regulations

5.0

5.3

Changes in government trade policy

5.3

5.3

Poor sales of vehicles in programs supplied

5.6

4.5

External "black swan" event (geopolitical, natural disaster, etc.)

5.6

7.0

Likelihood of higher interest rates

5.8

6.7

1= Greatest Threat

2

3

4

5

6

7

8

9

10=Smallest Threat

Continued issues related to the pandemic remains as the greatest threat to the industry but eased sequentially.

Inability to fulfill customer volumes due to input shortages shot to the second greatest threat the industry faces.

Q1 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

2

Semiconductor Shortages Please estimate the North American production volume you are discounting in comparison to before the shortage was prevalent?

(Respondents with negative impact) No change

100%

10%

90%

1-5% 6-10%

70% 60%

32%

40% 30%

Greater than 20%

20%

Wtd. Avg.* 6.4%

5%

36%

50%

10%

16-20%

16%

80%

41%

11-15%

How confident are you that the industry will be able to recoup any North American production losses in the second half of 2021?

(Respondents with negative impact)

10% 0%

1%

20% 21% 5% Wtd. Avg. = 4.4 1=Not confident at all

0%

10%

20%

30%

40%

Pct. Responding * Assumes mid-point of each range, Greater than 20% = 23%

Q1 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

50%

2=Significantly unconfident 3=Slightly unconfident 4=Neutral 5=Slightly confident 6=Significantly confident 7=Perfectly confident

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 - 2021 First Quarter

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RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER

6 │ OESA News - 2021 First Quarter

RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER

OESA News - 2021 First Quarter

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GUEST COLUMN: BAKER TILLY

Mobility and the electrified supply chain Authored by: disruptions to unlock supply chain and organizational resilience Leverage Peter Pearce

Principal, Mobility and Transportation Practice Leader Baker Tilly +1 (248) 368 8838 peter.pearce@bakertilly.com

Erich Bergen

Director, Mobility and Transportation Baker Tilly +1 (248) 368 8741 erich.bergen@bakertilly.com

At this point, there is no slowing down the electric vehicle (EV) revolution. Even disappointing sales in 2020 hasn’t stopped the capital investments in EV manufacturers, with upstarts and more established carmakers elbowing their way into the North American market.

Although money and interest are not a problem for those looking to get into the EV game, institutional knowledge and raw materials can be since this is such a new part of the industry. In fact, it is often said, EV makers are more akin to tech companies than traditional car manufacturers.

In the past, a car manufacturer just starting out would have turned to Detroit for designers and engineers, but EV makers also need the type of software talent found in Silicon Valley and Austin. Bosch recently reported that a car built in 2010 used 10 million lines of code, and within a decade, it had increased tenfold to 200 million lines of code in 2020. Vehicles of tomorrow will have 300-500 million lines. As far as the supply chain, the market is wide open to companies with a little ingenuity and some capital to invest. Most importantly, every EV manufacturer needs a better battery — no matter how good theirs is currently, it is not good enough ... yet.

Manufacturers are revving their engines for EV technology Manufacturers and suppliers alike are investing what they can and partnering for efficiency. General Motors and LG Chem, one of the world’s largest lithium-ion battery makers, partnered to create a battery they announced will help lower their EV cars’ prices and hold a charge for up to 450 miles. (Tesla’s range is a little over 400 miles.) Ford Motor Company, which had said this past summer would buy its batteries from a third party, already changed course, with its new CEO saying in November the company is exploring options to build Ford batteries internally.

Despite those announcements, loads of other battery manufacturers and car companies are pushing to make the cheapest, most efficient, longest-running battery on the market.

That’s just one component, though. EVs will require many features unique to their type of car in addition to many of the same parts used by traditional carmakers, with a few modifications. EVs still need seat covers, windshields, chassis, tires, seatbelts, that is, all the typical interior components of the same quality as combustion cars, yet manufactured with a lighter weight, equally durable material.

Finding the right supplier for new parts takes knowledge of the industry because those suppliers might not exist yet.

The EV industry may launch a whole new crop of suppliers. However, a more probable scenario is current suppliers will create new product lines for EVs, retrofitting facilities to accommodate new lines, and applying Industry 4.0 concepts to support agile manufacturing. The problem is the suppliers themselves might not see how they can pivot to work with EVs, and this is where suppliers must focus on retaining competitive advantage in the new EV ecosystem.

As far as the supply chain, the market is wide open to companies with a little ingenuity and some capital to invest. Most importantly, every EV manufacturer needs a better battery — no matter how good theirs is currently, it is not good enough ... yet.

8 │ OESA News - 2021 First Quarter

GUEST COLUMN: BAKER TILLY

Suppliers must determine how to bring EV technology into their plant Suppliers and upstarts need to act now, deciding whether they should start from scratch with their own manufacturing plants or partner with a more established company that already has suppliers and facilities. For upstart carmakers, the latter option would allow them to develop their own designs and market their products, which is a lot less capital intensive. It also lets them be more flexible than the original equipment manufacturers (OEMs) since they don’t have to commit to creating as many product lines or selling as many cars.

For example, Volkswagen is expecting to spend about $800 million at its Chattanooga manufacturing plant in order to start production of its “ID.4” EV there by 2022, according to WardsAuto. In the meantime, Tesla will have three new “gigafactories” coming online between 2019 and 2021. Its Shanghai plant started production in December 2019, delivering 250,000 EVs in 2020, with eventual capacity of 500,000 a year. Tesla broke ground on “Giga Berlin” in June 2020, with production scheduled to begin in mid-2021 and it, too, will be able to produce 500,000 EVs annually. It also started construction on its $1.1 billion plant in Austin in July 2020 and is expected to start production in mid- to late 2021. The carmaker expanded its plans in Texas beyond building only its Cybertruck to producing batteries and a few different models to more efficiently serve the eastern part of the country. Capacity at the Texas factory is unclear, but the campus is on more than 2,100 acres compared to its Shanghai and Berlin counterparts’ 210 acres and 740 acres, respectively.

Though Tesla may be the best-selling EV player to date, there is still room for upstart competitors. They face an uphill battle since they do not have the cachet of Tesla or the brand recognition of one of the OEMs, so they have to stand out somehow.

EVs like Arrival and Rivian accomplish this by having niche products. Arrival focuses on building electric vans and buses for commercial use. It is also developing a $46 million microfactory concept in South Carolina to build its vehicles in cell-based operations that require smaller footprints and much lower capital expenditures. UPS already ordered 10,000 delivery vans from the company. Alternatively, Rivian’s specialties are “adventure vehicles,” including its sport truck and SUV, but its commercial side is fulfilling 100,000 electric vehicles by 2030 for Amazon for last-mile delivery.

Other carmakers will try to differentiate from others with their transaction models. While Tesla is the only car manufacturer that sells directly to the consumer, other EVs may follow this distribution model. Once legal hurdles clear, the concept of dealerships will go the way of Blockbuster Video. Eventually, buyers will order directly from the manufacturer, and the vehicles will drive themselves to their new owners’ driveways, making the time-consuming process of buying a car as effortless as streaming a movie off Netflix.

Driving towards the future Navigating this vastly changing EV landscape can be tricky. Our Baker Tilly mobility and transportation professionals are adept at providing an evaluation of your supply chain to determine how your manufacturing plant can redefine and optimize their business to enter the EV space.

About Baker Tilly

More than 4,600 professionals strong, Baker Tilly is a leading advisory, tax and assurance firm with experienced mobility and transportation professionals that provide growth, operations and business technology services to help all members of the mobility and transportation supply chain improve decision making and operational efficiencies. Headquartered in Chicago, Baker Tilly, and its affiliated entities, have operations in North America, South America, Europe, Asia and Australia.

Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 146 territories, with 36,000 professionals. @BakerTillyCloud

Baker Tilly Consulting

Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2021 Baker Tilly US, LLP

OESA News - 2021 First Quarter

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GUEST COLUMN: ARGUS

Tech

Appli instru scree Copp silico and m

Battery Materials

Assembling a car with Argus energy and commodity prices Competition in the automotive industry is fierce, so access to timely, accurate pricing to better negotiate contracts, improve profit margins and reduce risk have never been more important. Argus provides a range of pricing and analysis for you to make decisions with certainty and maximise your profitability.

Application: Used in batteries for EV’s as well as the wiring and related electronics. Copper, Lithium, Cobalt hydroxide, nickel, LME+premiums on base metals, rare earths and graphite

Argu

Arg Arg Arg

Argus product offerings: Argus Metals International Argus Battery Materials Analytics Argus Metals Prices

Polypropylene (PP) Application: Automotive bumpers, chemical tanks, cable insulation, gas cans, carpet fibers

Argus product offerings: Argus Global Polypropylene Argus Propylene

Rare Earths Application: Used glass, mirrors, speakers, EV drivetrains

Argus product offerings: Argus Metals International Argus Rare Earths Analytics

Polycarbonate (PC) Application: Bumpers, headlamp lenses

Click on the product’s name in the Argus product offerings list to find out more

Click on this image to view the CLICK ON THE BUTTONS BELOW TO VIEW THE products offered by sector.

PRODUCTS OFFERED

BY SECTOR:

Metals

Petrochemicals

illuminating the markets 10 │ OESA News - 2021 First Quarter

All

Argus product offerings: Argus Ammonia Argus Benzene Argus Chlor-Alkali Argus Propylene

GUEST COLUMN: ARGUS

hnology Metals

Stainless Steels and Alloys

ication: Used in semiconductors, umentation, speakers, touch ens, wiring, and other electronics. per, battery materials, rare earths, on, nickel, gallium, tellurium, more

us product offerings:

gus Metals International gus Battery Materials Analytics gus Rare Earths Analytics

Application: Used in exhaust systems, clamps, fasteners, auto parts, trim. Argus prices main stainless grades and the alloying ingredients like molybdenum, nickel, and chrome

Acrylonitrile Butadiene Styrene (ABS) Application: Automotive body parts, dashboards, wheel covers

Argus product offerings: Argus Ammonia Argus Benzene Argus Butadiene Argus Propylene

Argus product offerings: Argus Metals International Argus Metals Prices

Polyamide (PA, Nylon 6/6, Nylon 6) Application: Gears, bushes, cams, bearings, weather proof coating

Argus product offerings: Argus Ammonia Argus Benzene

Argus Butadiene Argus Propylene

Catalyst Metals Application: Platinum group metals used in catalytic converters

Argus product offerings: Argus Metals International

Styrene Butadiene Rubber (SBR) Application: Tires

Argus product offerings: Argus Benzene

Argus Butadiene

Carbon Steel and Aluminum Aluminium Alloys Application: Specialty aluminium alloys and magnesium in wheels

Argus product offerings: Argus Metals International Argus Metals Prices

Application: Used in body, chassis, powertrain, cast engine parts, framing, seating. Steel sheet, coated steel, aluminium sheet, MW Ali premium, steel and aluminium scrap

Argus product offerings: Argus Metals International Argus Ferrous Markets Argus Metals Prices

To learn more about our Argus automotive offering, please contact us today at Metals-m@argusmedia.com.

OESA News - 2021 First Quarter

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COUNCIL HIGHLIGHT

Hello Warranty Professionals!

Do you spearhead your company's warranty efforts? Are you looking to better understand FCA’s SAWRP+ efforts? Or would you like to understand what makes for a successful warranty workforce?

If you answered "yes" or are interested in any of these topics, we invite you to attend in OESA’s Warranty Management Council (WMC) meeting on March 25, 2021.

A highlight of the March 25th meeting is a review of a new competencies document created by the WMC Board of Governors. The e-document, targeted to automotive suppliers, provides recommendations and high-level guidance on the skills and competencies needed for successful warranty professionals and warranty departments.

The full agenda features: • Skills and Competencies for a Successful Warranty Workforce • CQI-14 Update • FCA SAWRP+ • Member roundtable – dedicated conversation time with your peers If you are already a member, we look forward to seeing you there.If you are not yet a member, we welcome you to be our guest. Please reach out to me so to get you registered for the meeting.

We look forward to seeing you there!

Ginger Juncker Executive Director, Councils and Member Services gjuncker@oesa.org or 248.430.5953

Council membership is available to the senior executives or functional managers responsible for warranty or the warranty process of OESA supplier member companies.

Cost of membership is $1,000 per year.

2021 WMC Meeting Dates March 25th June 24th September 23rd December 14th 12 │ OESA News - 2021 First Quarter

COUNCIL HIGHLIGHT

OESA Young Leadership Council Thrives in a Virtual Enviroment - Welcome YLC9 Cohort OESA had to pivot the YLC 9 kickoff meeting to a virtual interactive leadership development program.

The two-year leadership development program is designed to equip future leaders with the skills, tools, and best practices they need to confidently lead their team and drive performance within their organizations. Council members hear from subject matter experts on leadership, personal development and industry topics and trends.

Members of OESA’s YLC cohorts are identified as future leaders of their company and are nominated by senior executives. The council is open to all member companies and provides a forum to help develop and retain future leaders. Participants come from all functional areas including finance, sales, marketing, manufacturing, human resources, purchasing, logistics, communications, and engineering.

OESA welcomed 41 enthusiastic members to the YLC 9 cohort and had an engaging day that included: • Buildinging new relationships with automotive industry peers.

• Learning about OESA, MEMA, and the purpose of the YLC Program.

• Conversing with YLC Alumni Members Rachel Welch, Senior Controlling Analyst, MAHLE Industries, Inc. and Henrique Baratz, Sales Director, SEG Automotive North America, LLC. • Connecting with executive leader, Carrie Uhl, Chief Procurement Officer, GE Healthcare, shared her leadership perspective and actionable takeaways to include in attendees leadership toolbox.

• Sharing ideas in breakout rooms to develop council programming content.

Throughout the meeting, members of the council participated in Word Cloud activities to keep the engagement alive and interactive. (See figure 1 results.)

As a closing piece, members narrowed down their goals and desired themes. This will guide the programming for the remainder of their council membership. They also evaluated their kick-off meeting. (See figure 2 for results.)

Could your future leaders benefit from an experience like this? YLC10 will be accepting nominations in September of 2021. For further information, contact Keiyania Mann,

Figure 1

Figure 2 OESA News - 2021 First Quarter

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OESA EVENTS

GM Purchasing and Supply Chain Town Hall March 3 | 1:00 - 4:00 p.m.

OESA is pleased to host the 16th annual virtual OESA Members-Only General Motors Purchasing and Supply Chain Town Hall with Shilpan Amin, vice president, global purchasing & supply chain, General Motors, and members of his Global Purchasing & Supply Chain (GPSC) senior leadership team on March 3, 2021.

This event offers OESA member executives the unique opportunity to hear the latest GM supplier initiatives first-hand and participate in an open question-and-answer session with GM executives. Virtual one-on-one networking opportunities will be made available with GM executives following the formal meeting.

Shilpan Amin, Vice President, Global Purchasing & Supply Chain, General Motors

OESA members who currently interface with GM, or those who wish to do so, should plan to attend this annual town hall meeting.

Executive Sponsors:

Industry Partner:

Supporting Sponsors:

Registration for this event is now closed. For assistance, contact OESA at 248.952.6401 or info@oesa.org.

14 │ OESA News - 2021 First Quarter

OESA EVENTS

Driving DEI in the Mobility Landscape March 5 | 1:00 - 3:30 p.m.

The importance of diversity, equity & inclusion (DEI) has taken center stage as recent events in the U.S. have sparked a renewed focus on racial and social justice.

The motor vehicle industry has an opportunity to expand its workforce’s diversity, equity and inclusion practices, and many organizations do not know where to begin.

The divisions of MEMA are pleased to launch Driving DEI in the Mobility Landscape on Friday, March 5, 2021 at 1 p.m. EST. This virtual event will help industry professionals understand the importance of DEI, discuss ways to get started and learn best practices.

Bill Long, President and CEO, MEMA will share how and why MEMA is taking action. Ron Hall, President and CEO, Bridgewater Interiors will discuss the importance of driving DEI from the top.

Cheryl Thompson, CEO and Founder, CADIA, will share the Top 5 DEI challenges in automotive and how organizations can take action now.

Supplier leaders DEI will share their DEI journey in a roundtable discussion.

Making Sense of the New Administration: Electrification Policy March 24 | 1:00 - 3:30 p.m.

OESA is pleased to launch a new virtual series, “Making Sense of the New Administration.”

The members-only, three-part series will offer an in-depth look at key Biden Administration policy decisions that will directly impact the supplier community. This is a must-attend event for suppliers to gain an understanding of the policies that suppliers must consider in their strategic initiatives.

The first session, Electrification Policy, will be held on Wednesday, March 24, 2021. Ann Wilson, senior vice president, government affairs, and Laurie Holmes, senior director, environmental policy, Motor & Equipment Manufacturers Association (MEMA), will discuss the administration’s push for electrification and what suppliers should expect. The session will also feature “Clean Energy Transition and Electrification Opportunities,” presented by Alex Bond, associate general counsel, energy & environment, Edison Electric Institute. An opportunity to ask questions of the speakers will follow the presentations.

The second session in the series will take place on April 8, 2021, and feature an overview of the Transportation Reauthorization Bill. This session will offer an in-depth look at the administration’s plan for transportation and present a legal perspective on topics such as CAFÉ, safety, and new technology.

The final session in the series will take place on April 22, 2021, and cover several aspects of Trade, including the latest updates on the USMCA and what is next for China and Europe.

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 - 2021 First Quarter

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OESA EVENTS

Strategic Insights: EV Market Outlook - Ready for Takeoff!

March 30 | 8:30 - 10:45 a.m.

OESA invites industry executives, analysts, and strategy professionals to attend OESA 2021 Strategic Insights: EV Market Outlook - Ready for Takeoff! on March 30, 2021. This is the first of two virtual executive briefings addressing actionable insights in electrification. Attendees will gain intelligence to inform planning frameworks from industry experts within forecasting, consumer & product research, leading automakers, and premier industry consultants.

The OESA 2021 Strategic Insights Executive Webinar Series offers fresh perspectives to contend with the dramatic pace of industry change, technology advancement, sales volatility, and production sourcing dynamics.

Kevin Riddell, senior manager, powertrain forecasting, LMC Automotive, will review the growing wave of EV product launches in North America while providing global context. He will also share key insights on the automotive outlook, including the ongoing impact of semiconductor shortages.

Mike Dovorany, vice president, automotive and mobility, Escalent, will share insights from their proprietary consumer research framework, EVForwardTM. This leading research links buyer attitudes, user behavior, technology adoption and purchase drivers to help suppliers and automakers add value by creating winning strategies and solutions to thrive in the dynamic EV landscape.

Thomas Hosea, Program Purchasing Director, EV/AV, General Motors, will share key insights on how new approaches to identify consumer needs and foster supplier collaboration have helped to achieve product breakthroughs to elevate the user experience and enhance customer value.

Attendees will gain an understanding of planning priorities to set stronger resource allocation strategies and better position their organizations for future success.

Series 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.

16 │ OESA News - 2021 First Quarter

WELCOME NEW OESA MEMBERS Axion RMS, Ltd.

CRP Industries, Inc.

ficonTEC, Inc.

Fuchs Lubricants Company

GNS North America

I-PEX USA Manufacturing, Inc.

Lydall Thermal Acoustical

Tweddle Group

2651 Warrenville Road Ste. 200 Downers Grove, IL 60515 www.axionrms.com Member Representative: John Turnbull, Benefits Consultant

2823 Parkridge Dr. Ann Arbor, MI 48103 www.ficontec.com Member Representative: Stefan Concezzi, CEO Alternate Representative: MGregory Flinn, Marketing Development Manager

13341 Quincy Street Holland, MI 49424 www.gnsauto.com Member Representative: Michael J. Alcala, President & CEO

1245 Buck Shoals Rd. Haptonville, NC, 27020 www.lydall.com Member Representative: Mark Kaddouh, Sr. Global Director of Business Alternate Representative: Vic Angle, Director of Purchasing For membership information, contact:

35 Commerce Drive Cranbury, NJ 08512 www.crpautomotive.com Member Representative: Todd Gilbert, OES Business Development Manager Alternate Representative: Scott Shea, COO 17050 Lathrop Ave. Harvey, IL 64026 www.fuchs.com Member Representative: Cheryl Wilson, OEM Business Development Alternate Representative: Tom Hayes, Vice President, OEM

239 Technology Pkwy.

Auburn, AL 36830 https://www.corp.i-pex.com/en Member Representative: Yosuke Kawagoe, Sales and Marketing 24700 Maplehurst Dr. Clinton Twp., MI 48036 www.tweddle.com Member Representative: Gwen Doyle, Global Commodity Manager Alternate Representative: Kenneth Porier, Vice President, Global Nissan Business

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! Tune in to "Automotive Insiders" for the latest in automotive and supplier industry news. Learn how companies are thriving in the new mobility landscape.​ Click here to listen to the latest OESA News - 2021 First Quarter

│ 17

OESA EVENTS Upcoming OESA Events (via virtual format) Mar. 3

GM Purchasing and Supply Chain Town Hall

Mar. 5

Driving DEI in the Mobility Landscape

Mar. 24

Making Sense of the New Administration Series: Session 1 - Electrification

Mar. 30

Strategic Insights: EV Market Outlook - Ready for Takeoff!

Upcoming Council Meetings (via virtual format): Mar. 9

Young Leadership Council Alumni

Mar. 11

Young Leadership Council 8

Mar. 18

Chief Financial Officers Council

Mar. 25

Waranty Management Council

OESA App: Get 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 2021 OESA Town Hall Meetings

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

Mar. 3

General Motors Town Hall

Jul. 27

Toyota Town Hall

Aug. 11

Stellantis Town Hall (formerly FCA)

Sept. 9

Honda Town Hall

Dec. 2

Ford Town Hall

18 │ OESA News - 2021 First Quarter

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