OESA News - First Quarter - Edition Two

NEWS Original Equipment Suppliers Association

Nissan Town Hall - February 8, 2022 Canoo Town Hall - February 24, 2022

IN THIS ISSUE...

1 On Your Behalf 2 Peer Group Councils 5 Listen Now - Automotive Insiders Podcast

6 OESA Events 8 Membership Benefits 9 OESA Event Calender

2022 First Quarter │ Edition 2

Warner Legal Corner AUTOMOTIVE LEGAL TOPICS Volume Two, February 2022

2021 was quite a year with ongoing COVID-19 challenges, force majeure declarations, shortages in labor, raw material and components, and price increase demands, volume and release fluctuations and capacity limitations. We also had to navigate shipping bottlenecks, increased costs and inflation. The question on every supplier’s mind is whether 2022 will be any better? So far, COVID-19 concerns are not going away and semiconductor shortages are predicted to continue. We continue to see shipping bottlenecks, labor shortages and ongoing pricing pressures leading to a continuation of supply chain challenges.

Warner addressed some of these challenges during our annual OESA Legal Trends presentation on January 25. Below are some key takeaways that auto suppliers can consider.

Exiting a bad contract. It is important to be proactive in dealing with difficult customer or supplier relationship, by conducting an “audit” or systems check on your key relationships by reviewing contract terms. Warner can help you ask the right questions to ensure you are protected.

Force Majeure. Force majeure events are still happening. However, not every situation that results in supply disruptions, cost increases or other challenges is a force majeure event. It is critical to carefully review your relevant contract provisions. Work with your counsel to ensure you are responding to a force majeure event in the proper way.

Price increase demands. Acting promptly, coordinating with your business and legal teams, and carefully controlling how the message is conveyed is important to realizing a successful outcome. If you are involved in a situation where a party has decided not to continue to ship, there are a number of legal options to consider. Warner can help you walk through which option is best for your situation.

Warner stands ready to help automotive suppliers navigate the challenges that will continue into 2022. Feel free to contact any member of our Automotive Group and visit our blog and webpage or log onto www.wnj.com.

Michael Brady

Partner mbrady@wnj.com 313.546.6032

Tom Manganello

Partner tmanganello@wnj.com 313.546.6007

Workforce Automotive suppliers have experienced a multitude of workforce challenges due to the affects COVID including workplace lawsuits, many of which stem from the way in which employers handle leave requests, implement workplace safety policies, and implement vaccine policies. Going forward it’s important to ensure you are well-versed in federal, state and local leave laws as well as COVID-19 regulatory agency guidance and safety procedures to help insulate you from potential lawsuits. Warner is here to assist when you are in doubt about how to implement your COVID-19 related policies and procedures.

Distressed Suppliers The government stimulus has worked its way through the system, however underlying systemic problems in the supply chain are resurfacing. Numerous suppliers are finding that “old” pricing in LTAs is unprofitable and unsustainable, yet obligations are still being enforced. Struggles to meet contractual performance requirements while dealing with unpredictable program schedules are leading to a cash flow crisis for suppliers.

Despite a multitude of challenges, the industry is still going to continue to do well. Nevertheless, suppliers need to be vigilant and proactive as it is cheaper to deal with distress early than pay the big price on the back end. Make sure to stay ahead of your contract renewals, as well as understand the financial health of your supply base. Building an inventory may also help to weather unpredictable starts and stops caused by supply chain uncertainty. Ultimately, Warner can help address early warning signs before a crisis arises.

Protecting your Confidential Information The automotive industry utilizes patents and copyrights to protect intellectual property. Trade secrets are also becoming more important in the auto industry as valuation shifts to algorithms and software and controls. It is important to understand how each protection works and follow best practices to ensure your confidential information is protected. Consistently reassess intellectual property procurement and protection strategies, and have a good understanding of what enforcement options and related implications exist. Most important, review your contracts!

Elaine Taylor

Business Development etaylor@wnj.com 586.876.4045

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

On Your

Behalf

Last month, I shared some of OESA’s strategic priorities as we move into 2022. I thought it would be helpful to provide an update on our progress.

OESA Events via Virtual Platform In 2022, OESA planned to conduct the majority of our events via a hybrid Format (both virtual and in-person). While this was hampered a bit by the omicron variant, we hope to execute the hybrid format by late February, assuming we continue to see the significant drops in COVID cases.

We also continue to hone the facilitation of our hybrid meetings to ensure that members have a positive experience regardless of how they attend. A number of you have been part of our “beta” efforts in these meetings – and we greatly appreciate it. Thank you for your support and feedback as we once again adjust how we deliver information and content to the membership.

New Councils and Council Initiatives In January, we launched the Emerging Leaders Council (ELC) with 39 participants. Replacing the Young Leadership Council, the ELC offers members greater exposure to industry peers, more leadership training opportunities and hands-on workshops. We will continue to have annual launches of the ELC (in January).

Please contact Keiyania Mann (kmann@oesa.mema.org) for additional information about this program.

Also in 2022, will be enhancing the Diversity, Equity & Inclusion (DEI) Council with external outreach initiatives and more events. Please keep an eye out for these new initiatives.

New Programming In January, we launched the "Automotive Insiders" podcast hosted by industry veteran Jason Stein. Please take a few minutes to listen to the first few sessions - https://www.oesa.org/automotive-insiders-hostedjasonstein.

We are excited to expand this year’s event programming with the return of the Nissan Town Hall, as well a Canoo Town Hall – both in February; an all-new Stellantis Terms & Conditions update this week and quarterly Strategic Insight meetings.

While the uncertainty in the automotive industry continues, OESA will be there to provide you and your teams with timely and relevant information. The team at OESA looks forward to working with you to champion your business interests during the best and the most challenging times in the industry.

Thank you for your support of OESA and the opportunity to serve you.

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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OESA PEER GROUP COUNCIL NETWORK

Learn About OESA Councils Ginger Juncker Vice President, Programming 248.430.5953 │ gjuncker@oesa.org

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.

Below is the full list of OESA councils and recent topics covered. It’s a handy guide to determine which council is right for member organizations.

Advanced Technology Council (ATC) • Global automotive semiconductor chip shortage • Insights on technologies and their consumer value • Insight from Stellantis on how suppliers should introduce new and innovative technologies Steve Horaney, Vice President, Membership and Sales, OESA (shoraney@oesa.org) or Brian Daugherty, Chief Technology Officer, MEMA (bdaugherty@mema.org) Automotive Public Relations Council (APRC) • Industry events/auto show insights • Media panels • Automotive PR best practices April Buford, Executive Director, Marketing and Communications, OESA (abuford@oesa.org) Chief Executive Officers Council (CEO) • Global macro-trends and the long-term impact on the industry • Technology transitions in the mobility industry and strategic implications for suppliers • The impact of supply chain issues on suppliers, such as material shortages and labor concerns Julie A. Fream, President and CEO, OESA (jfream@oesa.org) or Michelle Russo, Executive Assistant, OESA (mrusso@oesa.org) Chief Financial Officers Council (CFO) • Deep dives on items of interest (capital allocation strategies, decoding blockchain for suppliers, outlook for M&A, detailed tax policy review) • Regular debriefs on the quarterly OESA Supplier Barometer • Updates on industry sector dynamics Mike Jackson, Executive Director, Strategy and Research, OESA (mjackson@oesa.org)

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Chief Purchasing Officers Council (CPO) • Deep dives on items of interest (Managing Distressed Suppliers Risk, MRO Best Practices, Proactive Supplier Readiness Insights) • Regular debriefs on the quarterly OESA Supplier BarometerTM • Regulatory policy debriefs on USMCA and tariff dynamics Mike Jackson, Executive Director, Strategy and Research, OESA (mjackson@oesa.org) Diversity, Equity & Inclusion Council (DEI) • How to build, engage and leverage ERGs to provide value for employees and employers • Budgeting your DE&I strategy • "DE&I at My Company" (member companies share their DE&I journey) Keiyania Mann, Director, Councils, OESA (kmann@oesa.org) Emerging Leadership Council (ELC) • Building sustainable relationships by leveraging emotional intelligence • "Leadership from My Perspective" (invited CEO’s, executives and thought leaders share their leadership philosophies) • Peer-to-peer roundtable discussions Keiyania Mann, Director, Councils, OESA (kmann@oesa.org) Environment, Health, Safety & Sustainability Council (EHS&S) • OEM presentations on sustainability programs • Peer sharing (audits, safety requirements, compliance, etc.)

• Governmental rules and regulations (MIOSHA, PIP & PFAS, etc.)

Erin Schrieber, Senior Manager, Membership Recruitment and Development, OESA (eschrieber@oesa.org) Human Resources Council (HR) • Acquiring / retaining talent • Government affairs updates • Robust roundtable conversations exploring current challenges Ginger Juncker, Vice President, Programming, OESA (gjuncker@oesa.org) Legal Issues Council (LIC) • Hear from SMEs on current issues facing our industry • Terms and Conditions updates from OEMs • Washington, D.C. government affairs updates Ginger Juncker, Vice President, Programming, OESA (gjuncker@oesa.org)

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OESA PEER GROUP COUNCIL NETWORK

Learn About OESA Councils (continued) MarComm Executives Council (MEC) • Digital marketing ROI • Global communications • MarComm best practices April Buford, Executive Director, Marketing and Communications, OESA (abuford@oesa.org) Operations and Plant Managers Council (OPM) • Demand planning & management • How to drive throughput throughout the organization • Stabilizing operations Steve Horaney, Vice President, Membership and Sales, OESA (shoraney@oesa.org) Sales Executive Council (SEC) • Best practices and recommendations for setting goals for sales and program management teams • Presentations by OEM purchasing leaders • Key changes to Ford’s Terms & Conditions Steve Horaney, Vice President, Membership and Sales, OESA (shoraney@oesa.org) Tooling Council (TC) • Tool Steel Prices: Riding the Wave of Surging Metals Markets • Automotive Tooling Barometer results update • Conversations focused on tool & die shop leadership Julie A. Fream, President and CEO, OESA (jfream@oesa.org) Warranty Management Council (WMC) • OEM presentations on warranty programs • Peer sharing (warranty tools, skills and capabilities, etc.)

• Focus group efforts (benchmarking, best practices, etc.)

Ginger Juncker, Vice President, Programming, OESA (gjuncker@oesa.org) Learn more about OESA’s Peer Group Council Network at oesa.org/councils.

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AUTOMOTIVE INSIDERS..LISTEN NOW OESA and automotive industry expert Jason Stein have joined forces to present an all-new podcast focused on the automotive industry. The "Automotive Insiders" hosted by Jason Stein will be launched this month. It will cover a broad-range of industry topics and trends that are impacting the future of automotive.

Jason will interview some of the industry’s key thought leaders and industry insiders. The podcast will be available on Amazon Music, Apple Podcasts, Google Podcasts, iHeartRadio, Spotify, Stitcher, and Pandora.

New episodes will be featured weekly.

To subscribe and listen, click here.

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OESA EVENTS

Nissan Town Hall

February 8 | 11:30 a.m. - 4:00 p.m. | Novi, MI & virtually via Zoom OESA is pleased to host the 2022 OESA Nissan Town Hall on February 8, 2022, at the Suburban Collection Showplace, Novi, Mich. and via Zoom. Nissan recently announced its plan to get 40 percent of its U.S. sales from full-electric vehicles by 2030. Hiroshi Izumiyama, Vice President, Purchasing, Nissan Americas, and additional purchasing and product development executives will provide strategic updates on Nissan North America, manufacturing, regional marketing and engineering, as well as participate in a Q&A panel session.

Executives joining Izumiyama on stage include: •

Steve Marsh, Senior Vice President, Manufacturing and Supply Chain Management, Nissan North America

•

Michael Colleran, Corporate Vice President, Nissan Motor Co., Ltd, Senior Vice President, Nissan U.S. Marketing and Sales

•

Chris Reed, Regional Senior Vice President, Research and Development, Nissan Americas

For in-person event attendees, Nissan commodity purchasing executives will be available for one-on-one networking after the formal program.

OESA members interested in learning more about Nissan’s future strategic plans and sourcing opportunities are encouraged to attend this town hall.

Supporting Sponsor:

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

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

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OESA EVENTS

Canoo Town Hall & Matchmaker Event February 24 | 11:30 a.m. - 4:00 p.m. | Livonia, MI

OESA is pleased to host the industry’s first-ever Canoo Town Hall & Matchmaker Event on February 24, 2022. This OESA members-only event will be held in person at Laurel Manor in Livonia, Mich. Canoo designs and produces a portfolio of vehicles for the transition to future mobility.

Leaders from Canoo’s purchasing, engineering and supplier quality teams will give OESA members an exclusive opportunity to learn about Canoo’s plans for the future and its sourcing opportunities. Canoo will also showcase its vehicle concept.

Dean Harlow, EVP, Canoo will give a company overview and share production plans and discuss the company’s market segmentation, its competitive advantage, and the value it brings to the supplier base.

Alex Acket, VP supply chain, Canoo, will discuss supplier partnerships, as well as supplier technical capabilities to support Canoo’s new launch, and Christian Treiber, VP, customer journey & after sales, Canoo, will share the company’s customer journey and ecosystems.

Commodities of interest to Canoo include software and components in interior, exterior, chassis, powertrain and battery systems and E/E components. View the complete list of commodities HERE. Due to the sensitive nature of the content, attendees are asked that no photos be taken of the presentation or vehicle.

OESA members are encouraged to register early to take advantage of early registration pricing. Due to COVID restrictions, space is limited, and the event will sell out fast.

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BENEFITS OF MEMBERSHIP OESA members gain access to unparalleled networking opportunities, exclusive events, unique industry resources and relevant information.

FOSTERING COLLABORATION THROUGHOUT THE SUPPLY CHAIN

PROMOTING THE SUPPLIER VOICE IN WASHINGTON, D.C.

Members gain direct access to OEM executives

MEMA advocates for suppliers on legislative and regulatory issues

OESA is a member of several automotive manufacturer councils

Members have direct access to lawmakers on Capitol Hill

Tier 1, 2, 3 suppliers work together to address common issues

MEMA promotes the economic impact of the mobility sector

CREATING NETWORKING OPPORTUNITIES

HELPING MEMBERS MAKE MISSION-CRITICAL DECISIONS

OESA hosts more than 40 events annually to build relationships

The OESA Automotive Supplier Barometer TM provides the supplier pulse and economic sentiments

16 Peer Group Councils address the unique needs of suppliers OESA connects members to other international associations

For OESA membership information,

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

Erin Schrieber Senior Manager, Membership Recruitment and Development 248.430.5970 eschrieber@oesa.org

Adam Slaman Senior Manager, Sponsorship Sales and Membership Development 248.430.5958 aslaman@oesa.org

Supplier Insights Videos share trends and perspectives from industry thought leaders The OESA Affiliate Forecast Matrix aggregates sales and production forecasts from leading firms

OESA EVENTS Upcoming OESA Events: Feb. 8

Nissan Town Hall

Feb. 24

Canoo 2022 Town Hall & Matchmaker Event

Upcoming 2022 OESA Town Hall Meetings

Mark your calendar for the Members-Only OEM Town Hall Meetings

Feb. 8

Nissan Town Hall

Feb. 24

Canoo Town Hall

April 7

Fiskar Town Hall

April 27

GM Town Hall

July 27

Toyota Town Hall

Sept. 20

Honda Town Hall

Nov. 29

Ford Town Hall

Upcoming Council Meetings: Feb. 2

Automotive Public Relations and MarComm Executives Councils Joint Meeting

Feb. 3

Enviroment, Health, Safety and Sustainability and Human Resources Joint Council

Feb. 10

Young Leadership Council Alumni Networking Event

Feb. 10

Chief Purchasing Officer Council

Feb. 10

Sales Executive Council

Feb. 17

Advanced Technology Council OESA News - 2022 First 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 Executive Director, Marketing & Communications 248.430.5964 abuford@oesa.org

Abby Napier Communications Specialist

Lexi Putman Member Services Representative

248.430.5957 anapier@oesa.org

248.430.5959 lputman@oesa.org