OESA News 2021 - Second Quarter - Edition 2

NEWS Original Equipment Suppliers Association

2021 Second Quarter │ Edition 2

OESA/SAA 2021 12th Annual Purchasing Summit May 25, 2021

IN THIS ISSUE...

1 On Your Behalf 2 Supplier Advocacy 3 Council Highlight -

Advanced Technology Council

4 Industry Update 6 Guest Column: Argus Media 8 Guest Column: Entrada Group

10 Council Highlight -

Chief Executive Officer Council

12 OESA Events 15 Welcome New Members 16 OESA Event Calender

Warner Legal Corner

Warner Detroit

LEGAL TOPICS FOR THE AUTOMOTIVE INDUSTRY Volume Two, May 2021

Quick Tips To Better Prepare For Your M&A Future

Warner Detroit is now located in the District Detroit, 2715 Woodward Avenue, next to Little Caesars Arena.

Mergers and acquisitions (M&A) are rarely simple, and M&A transactions in the automotive industry are no exception.

With intricate global supply chains, fierce competition, unending technological advancements, OEs and a centuryplus history, automotive M&A transactions present a host of complex and unique challenges. If a deal could be in your future, modest changes to your current operations may help avoid predictable issues so you can focus on what matters.

Here are a few examples:

ATTORNEY SPOTLIGHT

1. Reconsider routine commercial arrangements.

Whether structured as an asset or equity deal, you’re likely to confront contractual obstacles. From transfer restrictions, insufficient license allocations or an absence of prearranged transition assistance, you can avoid future headaches and significant costs by negotiating upfront – when you have leverage – the rights and flexibility you may need.

2. Spring cleaning. Assess the state of your corporate governance and other key business records and policies.

If you’ve inadvertently put off preparing necessary filings or governance documents, reviewing critical policies (employment, IP and data security to name a few) or updating your forms library, now is the next best time.

3. Scout your bench. Ask who the essential members of your internal deal team will be and what sort of stress that might put on your organization. Determine if there are moves you can make today to help shoulder these burdens, including through reallocating responsibilities, training or hiring for specific expertise.

A strong internal and external team are vital to navigating these and many other issues. Warner’s experienced automotive attorneys are ready to help you efficiently plan for and complete your deal.

For more information from Warner’s Automotive Industry Group, visit their webpage or log onto www.wnj.com.

Daniel Bonucchi

Dan Bonucchi is an associate in Warner’s Detroit and Macomb County offices. Originally from the Detroit area, and a self-proclaimed car guy, Dan has always had an affinity for the automotive industry.

Dan joined Warner in 2019 after working most recently as in-house counsel for a global automotive manufacturer and supplier where he led various merger and acquisition (M&A) activities and counseled all levels of the business on commercial contracting matters and general day-to-day operations. Dan’s experience with automotive M&A transactions includes acting as both outside and in-house counsel and as a member of the transition and integration team for an acquired business. This unique perspective gives Dan a comprehensive and personal understanding of M&A transactions from the inside out.

Today, Dan remains involved in M&A work in the automotive industry, among others, and advises automotive suppliers on corporate governance, supply chain and other general corporate and commercial matters. When negotiating commercial agreements, Dan remains mindful of potential implications for M&A deals and considers provisions that are frequently overlooked but that often lead to M&A delays and avoidable expenses. Dan was named to Best Lawyers® 2021 Southfield Corporate Law and Mergers and Acquisitions Law “Ones to Watch” List.

Check out Dan’s full bio and his profile on LinkedIn.

Warner’s Legal Corner provides OESA members with educational resources, best practices and updates on law and regulatory changes impacting the automotive supply industry. The automotive environment is ever-changing. That’s why Warner is committed to building a better partnership with OESA and its members.

Click here to access Warner’s Legal Corner Resource Page on OESA’s website.

On Your

Behalf

Industry Disruptions…A Marathon, not a Sprint Even while the impact of the pandemic continues to weigh heavily on the automotive industry, the industry is experiencing additional disruptions that will also have a long-term impact. The current supply chain shortages, logistic delays and labor shortages continue to challenge the automotive supply chain as OEMs and suppliers work to maintain production schedules.

Additionally, it is now predicted the shortfall of semiconductors will constrain the automotive industry through the end of the year and beyond. These challenges and disruptions underscore the need for suppliers to develop new strategies to keep pace with the evolving industry marathon.

Supplier organizations are encouraged to focus on three key initiatives during these uncertain times: • • •

Closely collaborate with customers; Working together enables companies to create and implement better solutions to the ongoing challenges.

Do the same with your suppliers and the tiers below them. Create transparency throughout your entire supply chain.

Use processes and tools to determine and manage risk. Understand the severity and long-term impact of various risks to promote agile decision making.

Agility and transparency will determine a supplier’s success during these uncertain times. Suppliers that demonstrate these capabilities and create resiliency throughout their entire supply change will have a sustainable, competitive advantage.

OESA is available to support your teams. I encourage you to contact any member of the OESA team with your questions and requests.

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 Second Quarter

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SUPPLIER ADVOCACY

MEMA Brings Supplier Concerns to the Subcommittee on Surface Transportation, Maritime, Freight, And Ports The Motor & Equipment Manufacturers Association (MEMA) recently testified before the Subcommittee on Surface Transportation, Maritime, Freight and Ports chaired by Senator Gary Peters (D-MI). During the hearing titled, “Driving Innovation: The Future of Automotive Mobility, Safety, and Technology,” MEMA presented the case on how a vibrant automotive industry can provide the U.S. greater opportunities to be a global leader in vehicle safety, mobility, and technology.

Representing MEMA, the voice of more than 1000 automotive supplier organizations, Ann Wilson, senior vice president, government affairs, was one of only four witnesses invited to testify to discuss the state of automotive innovation and its current challenges and opportunities. “The U.S. is in danger of losing our competitive edge due to a lack of clear national policies,” said Wilson. “For the U.S to be a leader in automotive innovation and transportation, we must work collaboratively to develop a comprehensive national vision and strategy.”

She focused on four areas of opportunity for the industry: • Technology Readiness • Vehicle Safety • Fuel Economy and Vehicle Emissions • Workforce Regarding workforce, Wilson said, “workforce development is one of the most significant challenges facing the industry. Our industry’s workforce needs are evolving with the push to vehicle electrification and automation. In response to these changing needs, worker development and upskilling programs must advance to continue providing U.S. workers with the necessary skills to manufacture and service new technologies.”

Read MEMA’s full testimony HERE. Additional witnesses at the hearing included: • John Bozzella, President & CEO, Alliance for Automotive Innovation • Rana Abbas Gaylor, Mothers Against Drunk Driving • Reuben Sarkar, President & CEO, American Center for Mobility To learn more about MEMA and how it represents the voice of the automotive supplier community, visit mema.org.

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COUNCIL HIGHLIGHT

Introduction to the OESA Advanced Technology Council On April 13th, Al Bedwell, the Director of Global Powertrain at LMC Automotive discussed the North American and Global Electric Vehicle Outlook with the OESA Advanced Technology Council (ATC).

He projected that the number of Battery Electric Vehicles (BEVs) available in the US would increase from 19 models in 2020 to 113 in 2025 and 166 by 2030. BEVs and everything related to electrification are among the most frequently discussed council topics due to the high levels of OEM investment and consumer market uncertainty.

Tom Wendt, Peter Hanbury, and Mark Gottfredson – all partners at Bain & Company – then gave the council an excellent overview of the global automotive semiconductor crisis, the global factors that led to our current shortage, and how events will unfold over the next several years.

If these are topics of interest to your company, either you or someone from your organization should consider joining the council to stay abreast of these and other vehicle technology issues. Typical council members are the top technology executives from OESA member companies including CTOs, Directors/VPs of Engineering or R&D, and Chief Strategy Officers – anyone leading their company’s charge on advanced technology or heading up a technology area at a large supplier.

The Advanced Technology Council (ATC) is the primary council for discussing vehicle technologies and it is co-led by Brian Daugherty, MEMA’s CTO, and Steve Horaney, OESA’s VP of Membership and Sales. We have four quarterly meetings with guest speakers and excellent peer-to-peer discussions.

Discussion topics typically revolve around four main areas: 1. Automated Driving Systems (ADS) and Advanced Driver Assistance Systems (ADAS) technology

–including Sensors, Software, and Electronics 2. Vehicle Cybersecurity and Software 3. Vehicle Connectivity including Vehicle-to-Vehicle Communication (V2V, V2I, V2X), Over-the-Air (OTA) Updates, Human-Machine-Interface (HMI), Telematics, and Connected Infotainment 4. Fuel Economy and Advanced Propulsion – including Battery Electric Vehicle (BEV) technology, Hybrid vehicle technology, Alternative Fuels, Corporate Average Fuel Economy (CAFE), Green House Gas (GHG) related topics, Light-weighting, Advanced Materials, and Advanced Internal Combustion Engine (ICE) Technology Remaining ATC dates for 2021: • July 13 • October 19

Click here for additional information on the OESA Advanced Technology Council. If you are interested in joining the ATC, please contact Brian Daugherty at bdaugherty@mema.org or Steve Horaney at shoraney@oesa.mema.org for more information. We hope to see you at our next council meeting.

OESA News - 2021 Second Quarter

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INDUSTRY UPDATE

Beware of Divergent SUV Growth Rates Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

U.S. auto sales in the first quarter of 2021 surged 12% from depressed levels in 1Q 2020. Strong demand accounted for an increase of 430,000 units, reaching 3.97 million units, up sharply from a year ago when the onset of the pandemic triggered lockdowns in March 2020.

Most manufacturers posted net sales gains, favoring auto makers with growing light truck portfolios. Passenger car sales fell 2.3% to just under 910,000 units in 1Q 2021, in sharp contrast to the 17.3% surge in light truck demand, accounting for 3.06 million units of pickups, SUVs and vans. Remarkably, the SUV category accounted for 82% of volume growth in 1Q 2021, or just under 370,000 units.

Decades ago, GM, Ford and Stellantis (formerly FCA) fueled the emergence and growth of the SUV category, which still accounts for strong market share today. The industry eventually adopted the unibody architecture helping to drive strong economies of scale.

As a tremendous influx of competition arrives in more mature categories, core entries that previously have been cash cows will face a tougher sales environment. It is critical for the US3 to continue exploring new product opportunities with variants across the sport utility and light truck categories. A few recent examples include the Chevy Trailblazer (subcompact SUV), the Ford Bronco Sport (compact SUV) and the Jeep Grand Wagoneer (full-size SUV).

A key reason for the persistent decline of the passenger car category stems from what was a swift erosion in residual values. Some automakers became overly dependent on low-margin fleet sales to rental car companies. These sales helped maintain strong utilization rates at passenger car plants, yet eventually flooded the used car market, leaving consumers to carry the financial hit. The US3 auto makers shifted away from passenger cars in varying degrees and OEMs are wise to prioritize investments toward products that yield the highest returns. In contrast, passenger car portfolios at Toyota and Honda have been reduced, yet remain key contributors to profitability, augmenting their SUV product lines.

Although VW and others were slow to expand their SUV portfolios, many have since redoubled efforts, allocating massive investments to meet growing consumer demand within regional and global markets. To this point, U.S. demand across the SUV category, fueled sales growth of 20.3% or 369,000 units in 1Q 2021, to reach 2.19 million units. This is certainly a rising tide that can lift nearly all boats, yet not all to the same height. For more mature categories, competition offers the potential to drive tremendous margin pressure despite growing market volume.

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As U.S. sales of SUVs grew 20.3% in 1Q 2021, the Asian 4 producers (Toyota, Honda, Nissan, Hyundai/Kia) outpaced the market with 26% growth in the same period. The German 3 automakers posted strong gains of 16.6%, helped by nameplate growth at VW and Mercedes. The US3 reflected meaningful sales gains of 11.9%, off of a materially stronger base volume.

Finally, the strongest growth rate in the SUV category comes from ‘other’ as Subaru, Tesla, Mazda and Volvo drive robust gains, despite steep sales declines for Jaguar/Land Rover.

Despite strong category growth, suppliers must be mindful of growing profit pressures that accompany an increasingly competitive environment due to a sharply higher number of SUV nameplates.

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

OESA News - 2021 Second Quarter

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GUEST COLUMN: ARGUS

Assembling a car with Argus metals prices - Technology focus Illuminating the electric vehicle transition.

Spurred by governments and car buyers, vehicles have increasingly electrified not only their engines and components but also their interface with passengers. But, transitioning towards an electric vehicle (EV) future has brought the automotive market up against a number of hurdles.

Suppliers of battery materials are having to adjust their material offerings to meet greater battery production rates. This has noticeably intersected supply-chains in already large markets like nickel and cobalt.

Growing demand has also contributed to higher lithium prices in Asia, with Argus’ Chinese lithium carbonate assessments at almost 3yr highs, meanwhile nickel prices hit 7yr highs in February riding a wave of EV battery sentiment.

The US is on track to add 127GWh of lithium-ion battery capacity by 2025 with Biden’s infrastructure bill expanding charging infrastructure by 500,000 stations, while Argus coverage has highlighted the potential future of recycling batteries from EVs. In already challenging environment, semiconductor shortages have plagued automotive supply chains with some warning that nearly 1.3mn vehicles may not be produced in 2021 as a result.

The EV transition is raising the need both to track and to understand materials like lithium, cobalt and rare earths that traditionally had little to no impact on the automotive world.

illuminating the markets 6 │ OESA News - 2021 Second Quarter

Technology Metals Application: Used in semiconductors, instrumentation, speakers, touch screens, wiring, and other electronics. Copper, battery materials, rare earths, silicon, nickel, gallium, tellurium, and more

Argus product offerings: Argus Metals International Argus Battery Materials Analytics Argus Rare Earths Analytics

Battery Materials 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

Rare Earths

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

Application: Used glass, mirrors, speakers, EV drivetrains

Argus product offerings: Argus Metals International Argus Rare Earths Analytics

Metals Coverage (# of prices) Global exchange prices, real-time or delayed

Base metals

255

Rare earths

64

Ferro-alloys

83

Stainless

57

Ferrous scrap

285

Steel

94

Nonferrous scrap and secondary

244

Steel raw materials

153

Minor and specialty

188

Precious

83

To learn more about Argus’ services for the automotive sector, please visit www.argusmedia.com or email metals-m@argusmedia.com

OESA News - 2021 Second Quarter

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GUEST COLUMN: ENTRADA GROUP

Mexico: The Answer to America's Labor Shortage in Manufacturing It’s no secret: The US auto sector has a labor crunch. Mexico offers a strong solution to close that talent gap, but only if workers are able to keep skills current. That’s why the new Entrada Learning Center came to life.

By: JP McDaris Business Development Director Entrada Group +1 (512) 300 - 8383 jpmcdaris@entradagroup.com We are now more than a year into the pandemic and its detrimental effects are still being felt. To me, this quote from OESA’s Automotive Supplier Barometer report summarizes the paradoxical issue facing a lot of suppliers to the industry: “Even with the highest unemployment rate since the Great Recession, the lack of qualified candidates remains the top hiring constraint. Competition for other industries and wage demands remains prevalent.” — Q3 2020 OESA Automotive Supplier Barometer report.

It seems counterintuitive, but the labor crunch facing the auto sector remains challenging for many companies.

One common theme I notice, when talking to owners and CEOs of manufacturing companies, is a high percentage of plants operating at less than full capacity.

It’s hard to meet quarterly targets if you are running fewer shifts and operating with one hand behind your back.

As the absentee rate remains higher than normal in the manufacturing workforce — whether as workers opt to stay home to help with childcare or to prevent contracting COVID — the longer-term structural workforce issues facing the industry have only gotten worse in the past year due to the pandemic.

Many wonder if plants will ever bounce back to pre-COVID levels when “normalcy” returns.

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Mexico: A Convenient Solution Fortunately, Mexico offers a nearby, proven, abundant and affordable labor alternative to US operations, as many automakers and the producers up and down the supply chain demonstrate. Without ongoing professional development, however, Mexico’s workforce will fall behind and its advantages will erode.

Recognizing this, we recently launched the Entrada Group Learning Center, to ensure our clients can maintain an ongoing commitment to training and professional development, stay competitive and ensure compliance with changing industry requirements.

The Learning Center enables Entrada’s clients to offer a range of professional certifications and training programs, facilitating a culture of continuous improvement. We launched the Learning Center late in 2020; IPC 610 and IPC 620 certifications were the first courses offered. Entrada will add the IPC J-STD-001 certification by mid-2021.

About Entrada Group Entrada Group guides international auto sector manufacturers in establishing and running their own cost-competitive Mexico operations. Our plug-and-play manufacturing support platform enables our clients to shortcut to the benefits of Mexico without their own legal entity there. Recently, we launched the new Entrada Learning Center, an exclusive training center for our clients in Mexico. You can learn more about the Learning Center in the recent OESA Podcast or on our website.

Visit us: www.entradagroup.com

Onsite Training Increases Convenience One unique advantage of the Entrada Learning Center, which is the only of its kind in the state of Zacatecas, is that it is co-located at our manufacturing campus. This is a huge benefit for Entrada clients, as they no longer need to send workers to faraway cities for training, nor experience lengthy production downtimes.

By making professional development convenient and accessible, our clients can commit to dedicated continuous improvement programs that have been shown to improve production efficiency, increase employee satisfaction and aid retention. It also reinforces one of Mexico’s greatest strengths as a cost-competitive production location: its abundant and affordable workforce. “[Mexico] labor rates are very economical certainly compared to the rest of North America and even a slight advantage to what you see in the Far East,” Michael Upchurch, chief financial officer of railroad Kansas City Southern, said at a Goldman Sachs conference in late 2020.

Entrada's clients are already leveraging our new Learning Center as part of their commitment to Continuous Improvement

The manufacturing labor force in the US will have 2.4 million jobs to fill by 2028, according to The Manufacturing Institute.

What Kind of Training is Important?

To keep skill sets current and promote the continuous improvement of our clients, Entrada’s Learning Center will offer programs in three major areas: universal, industry-wide certifications (such as IPC); hands-on training in a range of disciplines to promote standardization and uniformity; and management and professional courses for indirects. (For a full list of the courses we offer, drop me an email).

Entrada is already planning to roll out additional electronics assembly and manufacturing certifications in mid-2021.

Entrada's Learning Center offers clients convenient, onsite training

This reinforces our commitment to professional development and continuous improvement, which we feel will give our clients a competitive advantage in the marketplace.

OESA News - 2021 Second Quarter

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COUNCIL HIGHLIGHT

CEO Council Address the Industry’s Current Issues Supply chain shortages, industry volume fluctuations, emerging technologies and the impact of government policies are a few of the timely and relevant topics discussed during OESA Chief Executive Officers (CEO) Council meetings. Facilitated by OESA’s president and CEO, Julie A. Fream, the CEO Council provides supplier leaders the opportunity to hear from industry executives and thought leaders on issues that directly impact their organizations.

Due to the pandemic, the Council currently meets twice a quarter via Zoom to discuss issues and concerns. Additionally, OESA and MEMA conduct half-hour updates every other week with Council members to ensure timely communication of these issues.

Participation in the Council is open to CEOs (or the highest-level executive in North America responsible for OE business at their organization) of supplier member organizations. The Council is comprised of 90+ members that represent all types of companies within the OESA membership. This diversity promotes a greater understanding of the issues and makes lively and candid roundtable discussions.

The remaining 2021 CEO Council meeting dates are listed below: • May 12 (2 hours via Zoom) • June 22 (2 hours viz Zoom) • September 1 (location tba) • December 8 (location tba) To learn more about the council, click here or contact Julie Fream at jfream@oesa,org.

OESA has a council for almost every function at a supplier organization. To learn more about the following OESA Peer Group Councils, click the links below: • • • • • • •

Advanced Technology Council Automotive Public Relations Council Chief Executive Officer Council Chief Financial Officers Council Chief Purchasing Officers Council Diversity, Equity & Inclusion Council Environment, Health, Safety & Sustainability Council

• • • • • • • •

Human Resources Council Legal Issues Council MarComm Executives Council Operation & Plant Manager Council Sales Executive Council Tooling Council Warranty Management Council Young Leadership Council

OESA Executive Peer Group Councils are rated as one of the most valuable member benefits for automotive suppliers. OESA's councils bring together supplier executives with similar job functions and industry challenges. Quarterly council meetings provide a forum to address issues of common concern, share best practices, and hear from industry thought leaders and subject matter experts.

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OESA EVENTS

Strategic Insights: EV Program Dynamics - Triumphs and Tripwires May 5 | 8:30 - 10:45 a.m.

OESA invites supplier industry executives, analysts, and strategy professionals to gain expert insights at the virtual OESA Strategic Insights - EV Program Dynamics: Triumphs & Tripwires on May 5, 2021. This is the second 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 Strategic Insights Series offers fresh perspectives to contend with the dramatic pace of industry change, technology advancement, sales volatility and production sourcing dynamics.

Jason Coffman, U.S. automotive consulting leader, Deloitte Consulting LLP, along with Ryan Robinson, automotive research leader, Raj Iyer, senior manager, mergers & acquisitions, and Marc Holzer, US automotive M&A leader, Deloitte, will review a detailed framework of supplier priorities for targeting new EV program opportunities. Attendees will gain critical insights on ways suppliers can enhance strategies and engagement in this crucial and growing industry sub-sector.

Renee Stephens, vice president, automotive, We Predict, will share extensive warranty insights on EV sector best practices and gap analyses showing variances to ICE programs. Their research draws from registration, usage and repair data to inform key warranty costs, set aside allocations and total cost of ownership metrics. Gain confidence by applying proven approaches and predictive analytics to thrive!

Richard Vaughan, director, crafted quality, Rivian, will share key insights on how new approaches to identify consumer needs and foster supplier collaboration have helped to achieve product breakthroughs elevating user experience and enhancing customer value.

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

Sponsors:

Register for all OESA events at www.oesa.org. For registration assistance, contact OESA at info@oesa.org.

OESA News - 2021 Second Quarter

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OESA EVENTS

Terms and Conditions Revisions: Ford and Toyota May 7 | 9:00 - 11:15 a.m.

In response to recent changes in Ford and Toyota's purchasing terms and conditions, OESA will host the virtual webinar, “OESA 2021 Terms and Conditions Revisions: Ford and Toyota." The free virtual event will be presented by the Butzel Long Global Automotive Practice on May 7, 2021. This is a special members-only advanced update of the annual OEM Terms and Conditions Update due to take place on September 15th.

Jennifer Dukarski, Cynthia Haffey, and Sheldon Klein, shareholders, Butzel Long, will share their analysis of the changes in the new terms and conditions (Ts & Cs) issued by Sponsored By: Ford Motor Company and Toyota Motor North America, Inc. They will also participate in an interactive question-and-answer session following each OEM Ts & Cs analysis.

The webinar is open to OESA, AASA, HDMA, and MERA members only.

OESA/SAA 2021 Purchasing Summit May 25 | 9:00 a.m. - 12:30 a.m.

OESA and the Society of Automotive Analysts (SAA), in cooperation with Plante Moran, will host the virtual “OESA / SAA 2021 12th Annual Purchasing Summit” on May 25, 2021. The event will feature a summary of the latest Plante Moran North American Automotive OEM-Supplier Working Relations Index® (WRI®) Study and comments from leading OEM purchasing executives.

Attendees will gain a better understanding of: • Which OEMs are improving relations with suppliers and which are falling behind • How OEMs are improving relations; what programs and policies are they embarking on • How OEM cost-cutting programs affect supplier relations • How electrification and autonomous vehicle programs are impacting traditional suppliers • What strategies suppliers should consider when working with OEM purchasing teams • How supplier relations directly impact the bottom line – for both OEMs and suppliers Following the panel, a virtual networking session will take place with representatives from each OEM. An extended Q&A will follow OEM executives’ remarks.

Sponsored By:

Register for all OESA events at www.oesa.org. For registration assistance, contact OESA at info@oesa.org.

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OESA EVENTS

China Market & Shanghai Auto Show Debrief: Charging Ahead May 26 | 8:30 - 11 a.m.

China remains the largest and one of the most important automotive markets in the world. Light vehicle sales and production in China surged over the past three decades. Policies and trade tensions derailed this growth streak prior to the coronavirus pandemic and recent global supply chain constraints. Despite this volatility, the long-term growth trajectory for China remains robust, coinciding with a resolute policy objective to lead the global industry in the battery electric vehicle realm.

Industry executives interested in the latest trends on the China market and those working with Chinese firms across supply chains are invited to attend OESA 2021 China Market & Shanghai Auto Show Debrief: Charging Ahead on May 26, 2021. This virtual debrief will offer deep insights into the rebounding China vehicle market with engaging discussions on the economy and consumer trends, automotive sales, production and product strategies, legal safeguards, and key trends in the global EV market.

Sue Yingzi Su, senior economist, China & North America, General Motors, will share insights on shifting consumer dynamics amid a resurgent Chinese economy. China industry expert Yale Zhang, managing director, Automotive Foresight, (Shanghai) Co., Ltd., will share current sales and production dynamics as well as key takeaways from the 2021 Shanghai Auto Show. Dan Rustmann, partner, and Bill Yang, associate, Butzel Long, will highlight legal safeguards key to navigating market complexities when working with Chinese partners in China, North America and beyond. In addition, a leading supplier executive will share experiences of managing dynamic growth and the rapid pace of changing technology in China.

Attendees can expect to gain an understanding of: • Economic drivers fueling the recovery and future outlook in China • Policy factors impacting product strategies and investment decisions • China’s auto sales and production trends, as well as competitive dynamics in the EV market • Product and technology takeaways from 2021 Shanghai Auto Show reveals • Key legal considerations to managing global supply chains, intellectual property, and partnerships • Organizational resilience by managing growth and rapidly changing technology needs Sponsored By:

Register for all OESA events at www.oesa.org. For registration assistance, contact OESA at info@oesa.org.

OESA News - 2021 Second Quarter

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WELCOME NEW OESA MEMBERS Aucto

Daicel Safety Systems Americas, Inc

Member Representative: Clayton Arnold, Buyer Marketing Manager Alternate Representative: Arjen Marrleveld, Chief Operating Officer

Member Representative: Chad Ritz, Vice President, NA Sales Alternate Representative: Patrick Adamczyk, Manager, Daicel Technical Center, Americas

Kim & Associates Co., Inc.

KUNHWA USA Corporation

Member Representative: Kevin Lee, Director, Business Development

Member Representative: Kyeongsu Seo, General Manager, Representative Alternate Representative: Jon Harst, Sales Director

Recaro Automotive N.A.

Schwartz Machine Co

1967 Wehrle Drive, Suite 1 Buffalo, New York 14221 www.aucto.com/

5030 Silverwood Court West Bloomfield, MI 48322 www.kimnassociates.com

24801 Capital Blvd Clinton Twp., MI 48036 www.recaro-automotive.com/us/ Member Representative: Nicole McElroy, Director of N.A. Sales & Global Marketing Alternate Representative: Emil Kreycik, President and COO

Varnum Law

3431 N. Reseda Circle Mesa, Az 85215 www.daicel.com/en/

850 Stephenson Hwy Suite 400 Troy, MI 48083 www.kunhwa.co.kr

4441 East Eight Mile Rd Warren, MI 48091 www.schwartzmachine.com Member Representative: Cheryl Zeglin, CEO Alternate Representative: Kim Ziomek, Director of Business Development For membership information, contact:

333 Bridge Street NW, Suite 1700 Grand Rapids, MI 49504 www.varnumlaw.com Member Representative: Joseph Caffrey, Chief Marketing Officer

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

14 │ OESA News - 2021 Second Quarter

Steve Horaney Vice President, Membership and Sales 248.430.5969 shoraney@oesa.org

Erin Schrieber Adam Slaman Manager, Manager, Membership Sponsorship Sales and Recruitment Membership and Development Development 248.430.5970 248.430.5958 eschrieber@oesa.org aslaman@oesa.org

OESA EVENTS Upcoming OESA Events: May 5

Strategic Insights - EV Program Dynamics: Triumphs & Tripwires

May 7

Terms and Conditions Revisions: Ford and Toyota

May 25

OESA/SAA 12th Annual Purchasing Summit

May 26

China Market & Shanghai Auto Show Debrief: Charging Ahead

Upcoming Council Meetings:

May 11

Enviroment, Health, Safety & Sustainability Council (EHS&S)

May 11

Young Leadership Alumni

May 12

Chief Executive Officer Council (CEO)

May 13

Chief Purchasing Officer Council (CPO)

May 18

Legal Issues Council - 2nd Quarter Segment 2 (LIC)

May 25

Diversity, Equity & Inclusion Council (DEI)

May 27

Human Resources Council - 2nd Quarter Segment 1 (HRC)

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:

June 16

Zoox Town Hall

Jul. 27

Toyota Town Hall

Aug. 11

Stellantis Town Hall (formerly FCA)

Sept. 9

Honda Town Hall

Dec. 2

Ford Town Hall OESA News - 2021 Second 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