OESA News - Third Quarter - Edition Three

NEWS Original Equipment Suppliers Association

2021 Third Quarter │ Edition 3

IN THIS ISSUE...

1 Warner Legal Corner 2 On Your Behalf 3 Vehicle Electrification in the U.S. 5 Riveron - Elevate Your Performance 6 MEMA Advocacy

7 Automotive Supplier Conference 9 Automotive Supplier BarometerTM 11 RSM Commentary: Automotive Supplier BarometerTM 13 Council Highlight - CFO Council 14 Council Highlight - EHS&S Council

15 OESA Events 20 Welcome New Members 21 OESA Calendar of Events

Warner Legal Corner LEGAL TOPICS FOR THE AUTOMOTIVE INDUSTRY Volume Six, September 2021

Ford’s New PPGTC Muddies the Water for Suppliers That Manufacture Software-Related Parts and Products Ford’s new Production Purchasing Global Terms and Conditions (Ford’s new PPGTC), effective July 1, 2021, includes significant changes to how Ford treats software incorporated into any related goods, services and tech products supplied to Ford. If your supply to Ford includes software, it’s important to know whether that software is classified as “commercial software,” “developed software” or “commercial off-the-shelf” software.

However, don’t expect Ford’s new PPGTC to make this classification, as these terms are not defined.

Historically, including in Ford’s prior PPGTC, Ford has only been concerned with broad-use rights in supplier IP, which maintained a supplier’s ability to provide the same or similar products to other OEMs. In fact, Ford was even obligated to negotiate commercially reasonable licensing terms to suppliers’ background IP. Ford’s new PPGTC has changed the game.

Now, under Section 14.03, all works of authorship or copyrights created under a Purchase Order (PO) are owned by Ford. There is no requirement that the PO be for engineering software design and development. Similarly, under Section 19.01, a supplier only owns “commercial off-the-shelf software,” as well as any registered IP, which was not developed specifically for Ford. In practice, it’s not uncommon to recycle or reuse portions of source code, which only adds to these ambiguities.

Importantly, not only does Ford want to own everything outside of “commercial off-the-shelf” software; there is no grant-back license to suppliers. This means that any software developed under a PO for Ford cannot be commercialized with any other customers.

It’s critical that all suppliers carefully consider these implications and have an IP strategy in place before accepting any PO from Ford involving software.

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

Michael Brady

Partner mbrady@wnj.com 313.546.6032

Tom Manganello

ATTORNEY SPOTLIGHT

Randy Peck

Warner Partner Randy Peck is a patent and transactional attorney who helps automotive suppliers and other businesses fully protect and exploit their intellectual property in the chemical, mechanical and electro-mechanical arts. Having worked with automotive suppliers for over 11 years, he oversees all aspects of patent procurement globally. Randy also advises clients on a wide range of transactional licensing and supply chain work, particularly automotive supply chain agreements, terms and conditions and conducting the IP portion of the due diligence before a merger or acquisition.

Randy has worked with several clients for so many years that his work goes beyond a single product’s full life cycle—continuing through numerous product “generations.” His international experience spans Japan, China, South Korea and Europe, in addition to the U.S. Randy is very niche-focused in his legal practice as are many of his Warner colleagues. Law firms often deploy corporate attorneys to advise on intellectual property components of contracts, terms and conditions and other agreements. At Warner, clients are assigned a technical team of intellectual property attorneys who have negotiated the same or similar issues with a supplier-OEM agreement. Randy shares: “We’re very focused in our work and know exactly what to look for. It makes us good at protecting our clients’ interests, especially when dealing with supplier contract negotiations involving OEMs.” Randy was named a Top Lawyer in Intellectual Property and Patent Law by Dbusiness from 2019-2021, was selected among the Oakland County Executive 2018 Elite 40 Under 40 class and won the Client Choice Awards 2017 for Intellectual Property: Patents for Michigan. Check out Randy’s full bio here.

Partner tmanganello@wnj.com 313.263.6855

Elaine Taylor

Business Development etaylor@wnj.com 586.876.4045

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

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On Your

Behalf

Planning for 2022: What else could possibly happen?

This is the time of year when many suppliers update their strategic plans and develop the coming year’s operating budget. Traditionally, making business assumptions regarding investment, program volumes, inflation and productivity have been important aspects in empowering teams to be successful in the coming year. If you get the “equation” wrong, motivation and morale can suffer.

Get it right and teams will step up to the challenge.

With the unknowns more complex this year than at any other time in recent history, the planning process for 2022 will need to be different. Every aspect of the automotive industry is in flux – volumes, technology, the economy, labor availability, and the pandemic, to name a few. And while the many engineers reading this - including myself - will be disappointed, there is no correct solution to this equation.

Developing a 2022 operating plan using traditional methods would be a bit like playing the lottery; you are betting on a million-to-one odds that your assumptions will be correct – unlikely at best!

So, how can supplier leaders approach this coming year?

1. Define the equation: Start with your priorities and keep eliminating unique priorities until you have three or fewer.

2. Determine the current variables necessary to solve the equation: Work with your team(s) to determine what they need to accomplish their priorities and the resources needed to get them done.

3. Ensure the equation has an answer (not an imaginary number): If you can’t connect the resources to the outcomes, something needs to adjust.

4. Re-evaluate often, insert the modified variables, and repeat #2 and #3: Re-evaluate weekly, monthly, or whatever timeframe works best for your teams, and be prepared to find different ways to enable them to achieve their priorities. If necessary, redefine the priorities and the equation.

Easy, right? Not so fast! Leadership during this time will be much more difficult and challenging than ever before. While this description is overly simplistic (yes, I realize this!), the key takeaway is to understand and accept the new level of adaptability and flexibility required to enable your teams and organization to be successful.

OESA is here to support you and your teams through this challenging time. Please reach out to me or any team member if we can be of assistance. I look forward to continuing to support the OESA membership during these uncharted times.

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

Julie A. Fream President and CEO OESA

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TECHNOLOGY UPDATE

Thoughts on Vehicle Electrification in the U.S. Brian Daugherty Chief Technology Officer, MEMA 248.430.5966 │ bdaugherty@mema.org

We are well aware of the media hype surrounding the future of electrified vehicle sales and the more than $300B being invested globally by vehicle OEMs on battery electric technology and vehicle launches over the next several years. However, last year only 2.5% of new vehicles registered in the U.S. were gasoline/electric hybrids and only 1.8% were full battery electric vehicles (BEVs).

More than 252,000 BEVs were registered in the U.S. in 2020 – up from 227,161 in 2019 – and Tesla models accounted for close to 80% of them. This is a slight, yet somewhat impressive, increase in Tesla’s U.S. BEV market dominance from 2019 since it is hard to maintain an 80% market share selling anything for very long.

In the U.S., we expect to see 125+ BEV models on the market within the next several years with some projections of 140 models in 2025. Consumers will soon have many more purchase options – everything from full-size trucks and large SUVs to compact cars. As the competition heats up, the BEV market will continue to grow, and Tesla’s share of the market will naturally decrease.

I still expect the BEV market to grow much slower than many in the media predict for a wide range of reasons including cost, consumer acceptance, lack of OEM battery capacity, the pains of planning charging, and range anxiety. Did I mention cost? Many of the new U.S. BEVs are targeting the $50K and up market, but it is very unclear how large that market can be. And it will be very interesting to see how many $100K+ BEVs will be sold, but I am betting on not that many. The availability of lower priced BEVs will continue to increase as more mass-market vehicles are available, but whether OEMs can make any money is still a big question.

Like any vehicle segment, we will see winners and losers among the many U.S. BEV models.

However, the losers may lose a lot. If you take 125 to 140 models and subtract the estimated Tesla share of the annual U.S. BEV sales volume (I assumed a reduced 40% share for Tesla in 2025), you end up with an estimated average of 4000 to 7000 units per year for the others depending on the year. After you also subtract out the non-Tesla models with sales over 40,000 units, you have some exceptionally low annual average sales numbers for the remaining models.

Everyone is playing to win, but the opposite is more likely for most BEV models. In the past, many suppliers did not care which engine option was chosen since their parts were on all models regardless of powertrain. But most of these BEV models are on their own dedicated platforms, which means all suppliers will be affected if volumes differ significantly from OEM contract forecasts. This means everything from doorhandles to roof liners, but especially the Class A surface part suppliers that are not supplying multiple models.

One of the other narratives in the media is that BEV sales are growing slowly due to lack of available highway DC fast charging capacity. So, if we just build more DC fast chargers, will everyone buy BEVs? In most areas of the country, charging stations are rarely full – except during holiday travel – so where are the constraints? Also, well over 80% of vehicle charging occurs at home and most of the remainder occurs at or near work. It also costs up to 3 or 4 times more for a vehicle 3 │ OESA News - 2021 Third Quarter

to charge at a DC fast charger which – along with convenience – is the reason BEV owners charge at home. Even with the higher charging prices, it is difficult to pay back the capital cost of the DC charging station unless it is used constantly.

I believe the main reason for slow sales growth is that a BEV still costs a consumer an additional $15K or more than an equivalent internal combustion engine (ICE) vehicle, and it requires a change in “vehicle lifestyle.” Given these two factors, U.S. consumers may remain reluctant to make the switch. No matter what happens, we will see a dramatic increase in U.S. stop-start and hybrid vehicles sales as OEMs work to meet increasing fuel economy standards.

A Slow Transition Another interesting aspect is that the electrification transition is going to take quite some time.

The U.S. has over 260 million – and some estimates are as high as 290 million – vehicles in operation. The average age of a vehicle on our roads is approaching 12 years which means that most vehicles will be on the road for 25 years or more. As an aside, many articles confuse average vehicle age with vehicle lifespan and they are obviously very different, yet this leads some pundits to predict a faster transition. Given this longevity – which continues to gradually increase as vehicles are better designed and manufactured – we will have internal combustion engine powered vehicles in the car parc for a very long time. Pick your own number, but even if BEVs account for 20% or more of the overall vehicles sold in the U.S. within a decade, the transition in the car parc will be gradual given that there are so many ICE vehicles already in operation.

If you would like to discuss this or any other vehicle technology topic, please contact me. I would be happy to hear your thoughts. Please also consider having the top technology executive from your company join our OESA Advanced Technology Council (see page 14 for details).

Contact Brian Daugherty at bdaugherty@mema.org to learn more about new vehicle technology trends and its impact on the industry. Also learn 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.

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RIVERON: ELEVATE YOUR PERFORMANCE

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Expand your possibilities.

You have challenges to overcome.

Goals to achieve. A business to transform.

You need a trusted partner to make it all happen.

Meet Riveron, a leading business advisory firm.

Together we can realize the unimagined potential of your evolving enterprise.

Learn more at Riveron.com Conway MacKenzie is now Riveron.

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MEMA ADVOCACY

Urge Your Legislator to Act Now on Semiconductor Legislation Ann Wilson Senior Vice President, Government Affairs 202.312.9246 │ awilson@mema.org

In June, the Senate passed the “Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act” which includes $52 billion in emergency funding to promote semiconductor manufacturing in the United States. That figure includes $2 billion to manufacture mature node chips that are used in the motor vehicle sector. As the industry already grapples with the challenges brought on by the COVID-19 pandemic, the House must act now to enact this legislation.

The shortage of chips is getting worse, underlining the need for quick passage of the CHIPS Act. For example, The Washington Post reports the global auto industry will produce four million fewer vehicles this year due to the semiconductor shortage, losing $110 billion in sales.

Click here to tell your Representative that Congress must act now on this legislation which strengthens semiconductor production in the United States. Simply use our one-click system to generate a letter to your Representative by entering your name and address.

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OESA AUTOMOTIVE SUPPLIER CONFERENCE

Register for the 23rd Annual Automotive Supplier Conference: Beyond Disruption. The day-long event will be held on Monday, Nov. 8, 2021, at the Suburban Collection Showplace in Novi, MI. This is a must-attend event for automotive OEM and supplier professionals to network in-person and hear from industry thought leaders on the future of automotive.

The automotive industry has been disrupted. From the ongoing impact of the global pandemic and port delays to the shortage of raw materials and wafers, the government’s focus on infrastructure, and the industry’s push for electrification, disruptions are creating new opportunities and challenges for the industry. This event will feature speakers and panel discussions on how organizations are pushing “Beyond Disruption” to forge a new landscape.

Confirmed presenters and panelists include:

Shilpan Amin General Motors

Françoise Colpron Valeo North America

Brian Daugherty MEMA

Hassane El-Khoury onsemi

Charlie Evans Federal Reserve Bank of Chicago

Julie A. Fream OESA

Steve Horaney OESA

Chuck Gray Ford Motor Company

Mark Gottfredson Bain & Company

Mike Jackson OESA

Monica Jackson Eaton

Jonathan Jennings Ford Motor Company

Jeff Jorge Baker Tilly

Bill Long MEMA

Ginger Junker OESA

John McElroy Blue Sky Productions

John Murphy Bank of America

Jérémie Papin Nissan Motor Company

Daniel Pink Bestselling Author

Matthew Renna Volkswagen of America, Inc.

Jeff Schuster LMC Automotive

Inga von Seelen Volkswagen of America, Inc.

Thomas Wendt Bain & Company

Ann Wilson MEMA

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Conference sponsorship opportunities are filling up fast. Take advantage of the conference to promote your organization to more than 700 automotive supplier executives.

Contact Adam Slaman, Manager, Sponsorship Sales and Membership Development, at aslaman@oesa.org or 734.735.0350 to customize available sponsorship opportunities.

Platinum Sponsors:

Premier Sponsors:

Presenting Sponsor:

Host Committee:

Breakfast Sponsor:

Reception Sponsor:

Register for OESA events at www.oesa.org.

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

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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 Q3 2021 OESA Automotive Supplier BarometerTM Index (SBI) – a gauge to measure the sentiments of North American automotive supplier executives – there is continued disruption to the automotive supply chain. Disruptions caused by input shortages, and the subsequent shutdowns of numerous OEM production facilities, weigh on the optimism of supplier executives despite a strong U.S. economy. Net results indicate an improved reading of 52, an increase of 8 points from the second quarter reading of 44, and 2 points above a neutral reading of 50.

The Q3 2021 OESA Automotive Supplier Barometer, sponsored by RSM US LLP, focused on Talent and Human Resources. The results indicate: Production shutdowns stemming from supply chain shortages and issues, as well as the inability to fulfill customer volumes, continue to be the top threats to the industry over the next 12 months. Yet, they have eased marginally. Labor constraints and sales of vehicles in programs supplied are a growing concern. Suppliers are confident in the strength of the U.S. economy as issues related to the pandemic continue to be less threatening to the supply base and the overall economy.

• Skills and company cultural gaps widened, as suppliers realize their workers expect a continuation of flexible work arrangements. Suppliers are focusing on increasing internal skills development and changing hiring practices to offset skills gaps, while offering flexibility in work environments and relying on leadership to drive cultural change.

• Scarce labor availability and competition from other sectors accelerated hourly employee turnover to extremely high levels. Suppliers are increasing wages and relying on contract employees to offset the shortage of production workers. Signing and retention bonuses were the most successful incentive initiatives.

• Cost pressures are mounting as the supply base is budgeting for a 5.4% and 2.9% increase to hourly and salary employee wages, respectively. Additionally, suppliers expect pricing pressure across all other benefit offerings.

•

Executive sentiment rebounded into positive territory, despite 1) workforce pressures resulting from the pandemic and 2) the accelerating pace of industry change, contributing to growing gaps between responsibilities and skills across the supplier ecosystem. Suppliers are battling increased turnover, most acutely within their hourly ranks, though supplier resilience continues to shine, with 91% of suppliers actively pursuing efforts to bridge these skills gaps while elevating the role of technology to enhance employee flexibility to attract, retain and empower employee success.

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.

Please see page 11 for RSM's Commentary on this quarter's barometer.

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OESA Supplier Barometer: Q3 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

Q3 2021

80 43%

Jan-2021

Jan-2020

Jan-2019

Jan-2017

Jan-2015

Jan-2014

10

COVID-19 Pandemic

US Trade War Escalates

Japan Tsunami/ Grexit Crisis

Jan-2016

Euro Crisis Begins

20

Jan-2013

30

Jan-2012

Somewhat more pessimistic

Unchanged

40 3%

Significantly more pessimistic

9%

52

Lehman Collapse

50

6%

Somewhat more optimistic

0%

8%

Significantly more optimistic

20%

60

31%

27% 17%

Jan-2011

23%

US Tax Reform

70

Jan-2010

33%

Jan-2009

40%

Jan-2018

Q2 2021

60%

175 responses

The outlook for the third quarter rose into optimistic territory as production shutdowns due to supply chain shortages eased slightly, while sales performance of programs supplied deteriorated Q3 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 July May

Production shutdowns dueshortages to supply chain…

Production shutdowns due to supply chain and issues

2.7

2.5

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

3.0

3.1

Labor Labor availability constraints availability constraints

3.1

3.6

ContinuedContinued issues related to the to COVID-19 pandemic issues related the COVID-19 pandemic

5.0

4.2

Poor sales of sales vehicles in programs supplied Poor of vehicles in programs supplied

5.6

6.4

Implementation of newofgovernment regulations Implementation new government regulations

5.9

5.8

Likelihood of higher interest rates Weakness in the U.S. Economy

5.9

6.3

Weakness in the U.S. interest Economy Likelihood of higher rates

6.0

6.3

6.2

5.6

6.2

6.2

External "black event (geopolitical, natural…

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

Changes in government trade policy Changes in government trade policy 1= Greatest Threat

2

3

4

5

6

7

8

9

10=Smallest Threat

Production shutdowns due to supply chain shortages, and suppliers’ ability to fulfill volumes are the top threats to the 12-month outlook. Suppliers are becoming increasingly concerned over sales of programs supplied Q3 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

2

Understanding the Gaps – Roles/Responsibilities vs. Skills How do you see this changing over the next 1 to 3 years?

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

0 5 10 15 20 25 Increased Training/Skills Development/Re-skilling

23 11

Change in Hiring Practices

Narrowing Gap 32%

Widening gap 34%

6

Increased Flexibility

4

Monitoring and evaluation

4

Retention Initiatives

No Change 34%

3

Reorganization/Restructuring Increased Communication/Collaboration

2

Succession Planning

2

College Recruitment/Coops/Internships

2 Number of Responses

Suppliers are focused on developing talent internally through training or re-skilling, revamping hiring practices and increasing their flexibility Q3 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

Link to comments

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.

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RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER

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OESA PEER COUNCIL HIGHLIGHT

Introduction to the OESA Chief Financial Officers Council Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

The OESA CFO Council provides timely insight and relevant content for senior financial executives of North American suppliers. This dynamic group has the opportunity to interact with peers who understand the opportunities and challenges facing the industry every day. Members of this group include CFOs, presidents, directors and other senior financial executives of automotive suppliers.

These leaders gather four times per year to gain valuable insights from subject matter experts on specific topics to make better informed decisions and gather dynamic perspectives from trusted members of their professional network.

CFO council meetings include three important parts. Following a welcome to current members and guests, attendees join a brief breakout session to network and raise topics of common interest and concern to be discussed in the Roundtable session. Thereafter, members gain rich insights from thought leaders on curated topics of interest.

Past presentations include updates on industry sector dynamics, capital allocation strategies, decoding blockchain for suppliers, winning the war on talent as well as courageous risk management, the outlook for M&A and a detailed review of the tax policy landscape. The CFO Council also receives a regular debrief on the quarterly OESA Supplier Barometer.

Following these insights, the meeting then shifts to the roundtable discussion, where members may seek feedback or ask questions, share experiences or provide valuable input from past lessons learned in a trusted environment. These sessions offer compelling value by providing expert insight and application of these insights from trusted council members, saving members valuable time and resources.

To learn more about the OESA Chief Financial Officers Council please contact Mike Jackson at mjackson@oesa.org or Keiyania Mann at kmann@oesa.org.

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OESA PEER COUNCIL HIGHLIGHT

September is Environmental Awareness Month Erin Schrieber Manager, Membership Recruitment and Development 248.430.5970 │ eschrieber@oesa.org

Every September, many organizations come together to bring awareness to the different environmental issues we face each day. With the renewed attention on the environment and sustainability this month, we also wanted share a few ideas on what you or your company can do to heighten awareness of this important topic: Look at your company's environmental health, safety and sustainability (EHS&S) goals. Are they posted on your organization’s website? Are you sharing your accomplishments?

• Look at your own energy usage. Are there ways you can reduce your carbon footprint?

• Donate to a cause or local charity committed to helping the environment.

• Check out the Environmental Awareness days in September •

So, how will you raise awareness this month?

OESA’s Environmental, Health, Safety and Sustainability Council is an OESA peer group council created for supplier EHS&S leaders year round. Members discuss relevant topics, such as health and safety standards implementation and audits, workplace performance improvement, and sustainability initiatives.

The next EHS&S council meeting will be held on November 2 and guest presenters and topics include: • Lisa Whalen, Managing Director, Harris Poll

Automotive supplier industry and sustainability trends.

• Geraldine Barnuevo Cruz, Senior Manager Environmental Strategies and Sustainability, GM

Sustainability update from GM. • Laurie Holmes, Senior Director, Environmental Policy, MEMA

Policy updates from the EPA and Biden Administration.

• Peer-to-peer discussion of issues affecting our council members For more information on the EHS&S council, please contact Erin Schrieber at eschrieber@oesa.mema.org To join the council directly click here.

Upcoming meeting details: Tuesday, November 2, Noon-4pm Hybrid format, attend in-person or join virtually on Zoom Lunch will be provided to in-person participants We are looking forward to seeing you at an upcoming EHS&S Council meeting!

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OESA EVENTS

Members-Only Honda Town Hall

September 9 | 9:00 a.m. - 12:00 p.m. | Virtual OESA members are invited to attend the 11th Annual OESA Members-Only Honda Town Hall on Sept. 9, 2021, via the PheedLoop virtual platform. This is a unique opportunity to hear updates directly from Honda North American procurement leadership and engage in private business conversations with commodity buyers.

Mark Willoughby, vice president, procurement, Honda Development & Manufacturing of America, LLC, will provide a Honda business update including organizational change, current challenges, and electrification initiatives. Bob Zabor, department manager, North American automotive purchasing, Honda Development & Manufacturing of America, LLC, will share an update on Honda’s procurement activities. In addition, Mike Bockbrader, general Manager, supply chain management, Honda Development & Manufacturing of America, LLC, will share an update on how Honda is managing their supply chain. They participate in an interactive Q&A session following their updates.

Following the program, Honda commodity managers will be available for one-on-one virtual networking for the following commodities: Raw Materials Machining Stamping Plastics/Interior Electrical Powertrain Components Chassis • Diversity • • • • • • • •

Networking Sponsor:

Supporting Sponsors:

Industry Partner:

Register for OESA events at www.oesa.org.

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

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OEM Terms and Conditions Update

September 15 & 29 | 8:00 a.m. - 1:30 p.m. MSU Management Education Center, Troy, MI | Virtual OESA, in partnership with Butzel Long, will host the OESA 2021 OEM Terms and Conditions Update event on September 15, 2021, at the MSU Management Education Center, in Troy, Mich., and virtually via Zoom. An additional webinar will be held on Sept. 29, 2021, to address any questions regarding the publication.

This meeting will provide attendees with the latest information on OEM terms and conditions and related insights to consider when working with contracts. The event includes two Q&A segments and a networking lunch.

Butzel Long attorneys will discuss: • • • • • • •

OEM Terms and Conditions and Legal Update Supply in the Digital Age: Must-Know Terms in Data, Cyber and Software Indemnity Basics and Strategy Trade Wars Shocks and Trends in the U.S. – Mexico Supply Chain Non-Production Terms and Condition Supply Chain Contracting in Tumultuous Times

The updated OEM terms and conditions are included in the 2021 edition of the “OESA OEM North American Production Purchase Order Contract Terms and Conditions Comparative Analysis,” publication. This will be available for purchase at a discount prior to Sep. 29, 2021, with event registration.

The publication compares the terms and conditions of BMW, FCA, General Motors, Honda, Hyundai, Kia, Mercedes, Nissan, Rivian, and Volvo. It also includes the updated Ford Motor Company and Affiliates — Production Purchasing Global Terms and Conditions (PPGTC 7/1/2021), Toyota Motor Engineering & Manufacturing North America, Inc. — Terms and Conditions (10/1/2021), FCA Production and Mopar Purchasing General Terms and Conditions (1/2021) and Volkswagen Group of America Chattanooga Operations, LLC — Production Terms and Conditions of Purchase (Last revised 12/18/2020).

Please Note: There are no refunds on the publication after it has been delivered.

Exclusive Sponsor:

Register for OESA events at www.oesa.org.

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

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OESA EVENTS

Stellantis 22nd Annual Supplier Diversity MatchMaker Virtual Event September 16 | 9:00 a.m. - 3:00 p.m. | Virtual

Stellantis North America will host its 22nd Annual Supplier Diversity MatchMaker Event on September 16, 2021, at 9 a.m. ET, powered by OESA’s virtual meeting platform, Pheedloop.

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

Suppliers also have the opportunity to host exhibit space and share their capabilities. Each virtual booth includes: • • • • •

Supplier leadership contact information Description of company, products and/or services Downloadable product information or presentations Proof of minority certification Exhibitors must identify the diversity category of their business (as applicable): • MBE - Minority Business Enterprise • WBE - Women's Business Enterprise • VBE - Veteran Business Enterprise • SDV - Service Disabled Veterans • DOBE - Disability Owned Business Enterprise • LGBTQBE - Lesbian, Gay, Bisexual, Transgender,Queer Business Enterprise • HUB - Historically Underutilized Business • 8A – Small Disadvantaged Business

Exhibitors: There is no cost for OESA supplier members for a virtual exhibit space. The cost for the virtual exhibit space is $500 for non-OESA members. Non-OESA members can waive the exhibit fee by becoming a member OESA. and paying 2022 membership dues through December 31, 2022. For information about OESA membership, contact Erin Schrieber at 586.524.0436 or eschrieber@oesa.mema.org.

The deadline to register for a virtual exhibit space is September 10, 2021.

Non-Exhibiting Attendees: All attendees will have the opportunity to visit exhibitors in a virtual tradeshow environment and have private video connections for 1:1 networking with suppliers and Stellantis buyers. OESA members and industry guests can register at a cost of $50 per person on or before September 10, 2021 and $75 per person after.

Register for OESA events at www.oesa.org.

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

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Strategic Insights Executive Briefing Series: Driving Supply Chain ROI & Resilience

September 22 | 8:00 - 10:55 a.m. | OESA Conference Center, Southfield, MI | Virtual OESA invites industry executives, analysts, and strategy and purchasing professionals to gain expert insights at the OESA Strategic Insights Executive Briefing Series: Driving Supply Chain ROI & Resilience on September 22, 2021, at the OESA Conference Center in Southfield, Mich., and virtually via Zoom. Attendees will gain rich intelligence to inform planning frameworks from industry experts from risk and supply chain management as well as purchasing optimization organizations.

Changing business dynamics and increasing layers of complexity have raised expectations for leading suppliers. The OESA 2021 Strategic Insights Executive Series offers fresh perspectives to contend with the dramatic pace of industry change, technology advancement, sales volatility and production sourcing dynamics.

Driving Supply Chain ROI & Resilience Jason Coffman, U.S. automotive consulting leader, and Aref Khwaja, principal, Deloitte Consulting LLP, will share insights from their proprietary global research. Deloitte’s findings show that building robust capabilities focused on agility are the best way to boost enduring competitiveness and mitigate market volatility by leveraging powerful digital tools and capabilities.

Jeoff Burris, founder, and Mike Betz, CEO, APD, will discuss the value for manufacturing companies to invest in procurement. Leading companies recognize the strategic advantage they gain by deploying the right digital technologies to support a resilient organization. Karelia Saravia, purchasing manager, MBA, Litens Automotive Group, will share how her team transformed purchasing operations and engaged best practices during a global implementation of the ProcureForce technology suite.

Lisa Smith is a trusted global procurement leader transforming global end-to-end supply chain processes and driving organizational change management. While at Ford Motor Company, Smith provided executive leadership of a global procurement IT portfolio enabling $105B direct and indirect annual spend and led the delivery of Sourcing, Procure-to-Pay, and Supplier Performance programs.

As an Independent Executive Advisor, Smith is recognized as a global process transformation expert and will share her perspective on how cloud-based technology tools are transforming supply chains to bolster resilience and add value for manufacturers.

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

OESA currently requires all staff and guests to wear a mask within our facilities.

We will re-evaluate this requirement as appropriate.

Series Sponsors:

Register for OESA events at www.oesa.org.

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

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OESA EVENTS

Master Class Workshop Fall Program: Lead with Gravitas!

September 24, October 8 & 22 | 8:30 - 11:30 a.m. | Virtual

OESA will host the OESA 2021 Master Class Workshop Fall Program: Lead with Gravitas! This workshop will be offered over three sessions on September 24, October 8, and October 22, 2021.

Participants will learn leadership traits and tools while working on and applying them to their own leadership challenges.

OESA has partnered with Jan Griffiths, president and founder, Gravitas Detroit, to provide a fullyimmersive virtual workshop in an experiential setting. Gravitas Detroit provides workshops, keynotes, the accountability lab, and the Finding Gravitas podcast to ignite high performance through authentic leadership. Participants in this workshop will have the opportunity to provide insight in advance and be guided through a methodology specifically focused on these items (e.g., leadership traits they admire, visions they want to strive for and challenges they currently face).

Workshop sessions will build on the previous session to culminate in an actionable roadmap: • Step 1 – Define Success • Step 2 – Identify and Manage Roadblocks • Step 3 – Craft Your Roadmap to Success Participants will experience: • Insight, instruction and coaching • Immediate application of tools and techniques • Practice by doing • Discussion groups and support system

Jan Griffiths President and Founder, Gravitas Detroit

Register for OESA events at www.oesa.org.

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

19 │ OESA News - 2021 Third Quarter

WELCOME NEW OESA MEMBERS Apex Logistics International Inc.

BizETech, LLC

Member Representative: Ali Najim, Corporate Business Development Manager

Member Representative: Jonathan Sanders, CEO

Infor

Rebo US Holdings, Inc.

Member Representative: Cynthia Wozniak, Field Marketing Manager Alternate Representative: Tanya Baase, Director, Marketing

Member Representative: Zac Zhang, Ph.D., President

SK Lubricants Americas

The Metals Company

Member Representative: Jim Putz, OEM Marketing Manager and New Business Development

Member Representative: Kristin Hengstebeck, Director, Business Development & Market Research Alternate Representative: Craig Sheski, CFO

Tribar Technologies, Inc.

For OESA membership information, contact:

18554 S. Susana Road Rancho Dominguez, CA 90221 www.apexglobe.com

641 6th Avenue Senior New York, NY 10011 www.infor.com

11700 Katy Fwy Huston, TX 77079 eng.sklubricants.com

48668 Alpha Dr. Wixom, MI 48393 www.tribar.com

79 Scenic Gulf Drive Miramar Beach, FL 32550 www.bizetech.biz

3990 Research Park Dr. Ann Arbor, MI 48108 www.rebo-group.de/EN-REBO-Lighting-Website

595 Howe Street Vancouver, BC V6C 2T5 www.metals.co

Member Representative: Kevin Cramton, Chairman & CEO Alternate Representative: Kevin Bagby, CFO

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

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.​ Listen in at VoiceAmerica.com.

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OESA EVENTS Upcoming OESA Events: Sept. 9

Honda Town Hall Meeting

Sept. 15

OEM Terms and Conditions Update

Sept. 16

Stellantis North America 22nd Annual Supplier Diversity Matchmaker Virtual Event

Sept. 22

Strategic Insights: Driving Supply Chain ROI & Resilience

Sept. 24

OESA 2021 Master Class Workshop Fall Program: Lead with Gravitas!

Upcoming Council Meetings: Sept. 9

Chief Financial Officers (CFO)

Sept. 16

Young Leadership 8 Graducation (YLC8)

Sept. 23

Warranty Management Council (WMC)

Learn more about OESA’s Peer Group Council Network at oesa.org/councils or call 248.952.6401.

Upcoming 2021 OESA Town Hall Meetings

Mark your calendar for the members-only OEM Town Hall meetings:

Sept. 9

Honda Town Hall

Oct. 5

Volkswagen Town Hall

Dec. 2

Ford Town Hall

21 │ OESA News - 2021 Third 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