Original Equipment Suppliers Association NEWS IN THIS ISSUE... 1 On Your Behalf by Julie A. Fream 2 OESA Events 6 Council Highlight: Operations and Plant Managers 2022 Third Quarter │ Edition 3 7 Welcome New Members 8 Tune into Automotive Insiders hosted by Jason Stein 9 OESA Event Calendar 2022 Automotive Supplier Conference November 7, 2022 Monday, November 7, 2022 Suburban Collection Showplace THE FUTURE IS CALLING... HOW WILL YOU ANSWER? 2022 Automotive Supplier Conference REGISTER NOW!
To avoid these losses, here are some steps to consider:
CornerLegalWarner
Zainab Hazimi
Xinjiang
ATTORNEYSPOTLIGHT
Having worked in the automotive supply chain sector for years and eagerly learning the supply chain process unique to each client – from sourcing parts to the manufacturing process – Zainab applies this practical knowledge to each and every case. Clients rely upon Zainab for her attention to detail, industry acumen and fierce advocacy.
In addition to her automotive supply chain practice, she frequently counsels and represents employers in various labor and employment disputes, namely discrimination, retaliation and harassment claims.
Check out Zainab’s full bio here.
What the UFLPA Means for Automotive Suppliers When Sourcing Product From
Update your supply contracts. Importers should consider whether their supplier contracts require compliance with all U.S. federal laws and the UFLPA specifically. Other relevant contractual provisions might include a requirement that suppliers and sub-suppliers avoid sourcing from the Xinjiang region or otherwise implement codes of conduct that prohibit forced labor and other human rights violations. For more information from Warner’s Automotive Industry Group, visit their webpage or log onto www.wnj.com Volume Eight, September 2022
AUTOMOTIVE LEGAL TOPICS
Nearly unanimously passed by Congress and signed into law by President Joe Biden, the Uyghur Forced Labor Prevention Act (UFLPA) went into effect on June 21, 2022, aimed at curbing forced labor in China’s Xinjiang region. The Act will require importers to be responsible for proving that imported goods from Xinjiang are not the product of forced labor. Automotive importers beware.
Tom Manganello Partner 313.546.6007tmanganello@wnj.com
Zainab has a proven track record in court and tenaciously defends her clients’ rights from start to finish. She won a $32 million judgment on behalf of an automotive supplier that was cut out of their own supply chain. The case included tortious interference and breach of contract claims. She also obtained $4 million in preliminary injunctive relief on behalf of an automotive supplier who was on the brink of insolvency. This sort of relief is extraordinary, and not commonly afforded to parties by the courts.
While finished automotive parts are rarely sourced from this region, raw materials and components integrated into automotive parts are – thus importers must ensure no part of any material imported from Xinjiang is the result of forced labor. Failure to disprove the force labor presumption could result in goods being detained, seized by and/or forfeited to U.S. Customs and Border Protection at the port.
Currently, Zainab is steadily focused on helping suppliers through temporary restraining orders (TROs) and preliminary injunctions. Many suppliers are being forced into price increases without a choice – something that is wreaking havoc across the automotive industry.
Click here to access Warner’s Legal Corner Resource Page on OESA’s website.
Warner attorney Zainab Hazimi is a litigator who focuses on employment, supply chain and other commercial litigation. Her experience spans state, federal and appellate courts and private arbitration.
Determine your forced labor risk profile. Develop a policy for mapping out the supply chain to effectively trace the source of each part, material and/or component being imported. Can you say for sure that no part of your supply chain is sourced from Xinjiang?
Prior to Warner, Zainab was a law clerk for U.S. District Judge Sean F. Cox in the Eastern District of Michigan, where she gained significant courtroom experience and valuable insight into the inner workings of a federal courthouse – something she brings to her writing and oral Zainabarguments.isrecognized among the Best Lawyers® Detroit Commercial and Employment Litigation “Ones to Watch” List (2021-2023).
Implement supply chain management and mitigation measures. If your supply chain includes at-risk suppliers (i.e., suppliers located in the region or sourcing from the region), does your supply chain mapping go beyond identifying the names of suppliers and sub-suppliers? Does it also include accounts of the working conditions at each step in the sourcing process?
Elaine Taylor Business Development 586.876.4045etaylor@wnj.com
Michael Brady Partner 313.546.6032mbrady@wnj.com
Behalf
The event will be held on Monday, November 7, 2022 at the Suburban Collection Show Place in Novi, MI. It is a must-attend event to network with other automotive supplier and OEM professionals, and gain actionable insight on the future of automotive. We hope to see you at this year’s Automotive Supplier Conference and learn how the industry is answering the call from the future.
On Your
OESA News - 2022 Second Quarter │ 1
2022 Automotive Supplier Conference is underway at OESA, and my team and I are excited about this year’s annual event. The focus of this year’s conference is on the future of the automotive industry: The Future is Calling…How Will You Answer?
The call for new vehicle innovation and collaboration throughout the industry continues to change the automotive supplier landscape. New opportunities and challenges abound as the industry evolves to electric vehicles and a new infrastructure. Conference attendees will gain firsthand knowledge on how the industry is answering the call of new vehicle innovation. Bring your entire team to hear from some of the industry’s key thought leaders, including executives from AutoForecast Solutions (AFS), Bain and Co., Barton Consulting Group (BCG), Deloitte, Ford, General Motors, Infor, KPMG, Rivian, Roland Berger, Wells Fargo and Zoox. Also presenting is Detroit native and New York Times best-selling author, Josh Linkner. He is an expert on innovation and the author of Big Little Breakthroughs: How Small, Everyday Innovations Drive Oversized Results, and several others. Other event highlights include an all-new EV Purchasing Panel, the ever-popular Industry Outlook Panel and new Ted-talk like “Bonus Briefs” on some of the most pressing issues in automotive.
Julie A.
PlanningOESAPresidentFreamandCEOforthe
2 │ OESA News - 2022 Second Quarter
S&P Global Mobility NAIAS Vehicle Tours
OESA EVENTS
OESA encourages early registration as space in each tour is limited to 25 people per tour. Once tour capacity is met, no further registrations can be accepted. An e-mail will be sent to participants prior to the event to confirm tour time. Tours will begin from the S&P Global Mobility booth on the main concourse (across from Cork & Grind) at Huntington Place and include an Industry Day Pass, a $75 value.
OESA invites automotive industry executives to attend a guided show floor tour at the 2022 North American International Auto Show (NAIAS) in partnership with S&P Global Mobility (formally known as IHS Markit Automotive). Tours will be held on Sept. 14 and 15, 2022, during industry days of the NAIAS at Huntington Place in Detroit.
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.
Sept 14 and 15 | Huntington Place, Detroit, MI
Experts from S&P Global Mobility will guide 90-minute tours on the show floor identifying strengths and weaknesses of OEM product strategies and platforms. These tours offer a unique opportunity for candid discussions on vehicles launched at the show and the business impact on the industry. They also enable supplier executives to better focus on OEM product goals and objectives.
Sponsored By: Available Wednesday,Tours:September 14 1 - 2:30 p.m. 2:30 - 4 p.m. Thursday, September 15 9:30 - 11 a.m.
OESA News - 2022 Second Quarter │ 3 OESA EVENTS Honda Town Hall
• Chassis • Components • Electrical • Machining • Plastics/Interior • Powertrain • Raw Materials • Stamping Networking Sponsor: Executive Sponsor Industry Partners Supporting Sponsors:
Mike Lapham, general manager, Procurement, Honda Development & Manufacturing of America, LLC will provide a Honda purchasing update including organizational change, current challenges, and sourcing opportunities. Following his presentation will be a Q&A session with Lapham and other Honda executives. At the end of the program, Honda commodity managers from the following commodities will be available for one-on-one networking:
OESA members are invited to attend the 12th Annual OESA Members-Only Honda Town Hall Meeting on Sept. 20, 2022. It will be held in person at the Laurel Manor, Livonia, Mich. This is a unique opportunity to hear directly from the Honda North American procurement leadership team and engage in one-on-one business conversations with commodity buyers.
Sept. 20 | Noon - 4:00 p.m. | Laurel Manor, Livonia, MI
Powered by OESA, Stellantis North America will host its 23rd Annual Supplier Diversity MatchMaker Event on September 22, 2022 at 9 a.m. ET.
Annual
Exhibits their identify the diversity category of their relevant): Disadvantaged Business
Suppliers also have the opportunity to host exhibit space and share their capabilities. Each exhibitor will be able to build their own virtual booth, and have a maximum of three representatives.
Sept. 22 | 9 a.m. - 2:00 p.m. | Virtual via Pheedloop
company, products and/or services • Downloadable product information or presentations • Proof of minority certification • Exhibitors must
• 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
include: • Supplier leadership contact information • Description of
Stellantis Supplier Diversity Matchmaker Virtual Event
The virtual event will give supplier businesses access to Stellantis Tier 1 suppliers and an opportunity to network with Stellantis buyers. It 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.
business as (where
Exhibitors: The cost for the virtual exhibit space is $250 for OESA members and $550 for non-OESA members. 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 12, 2022.
Non-Exhibiting Attendees: All attendees will have the opportunity to visit exhibitors in the virtual tradeshow environment and have private 1:1 networking sessions with suppliers and Stellantis buyers. OESA members and industry guests can register at a cost of $75 per person on or before September 12, 2022 and $90 per person after.
4 │ OESA News - 2022 Second Quarter OESA EVENTS
OESA, in partnership with Butzel, will host the OESA 2022 OEM Terms and Conditions Update event on September 28, 2022 at the MSU Management Education Center, in Troy, Mich and virtually via ThisZoom.meeting
OESA News - 2022 Second Quarter │ 5
•
• New
OESA EVENTS
Sept. 28 | 8 a.m. - 12:30 p.m. | MSU Management Education Center, Troy, MI
The new edition addresses the updated Stellantis/FCA North American terms. In addition, for the first time it includes the Lucid terms (Lucid USA, Inc. General Terms and Conditions for Prototype and Production Parts and Services, January 1, 2021). It also includes an updated version of the OESA Model General Terms and Conditions (07/2022). Please Note: There are no refunds on the publication after it has been delivered.
•
Exclusive Sponsor:
• Autonomous
• OEM
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
Updated OEM terms and conditions are included in the 2022 edition of the “OESA OEM North American Production Purchase Order Contract Terms and Conditions Comparative Analysis,” publication. It will be available for purchase at a discount until Sep. 28, 2022, with event registration.
The publication compares the terms and conditions of BMW, Ford Motor Company, General Motors, Honda, Hyundai, Kia, Lucid, Mercedes, Nissan, Rivian, Stellantis, Toyota, Volkswagen, and Volvo.
will provide attendees with updates on OEM Terms and Conditions and insights to consider when working with contracts. The event includes two Q&A segments as well as a networking lunch to enable attendees to further expand their understanding of the topic and make Butzelconnections.attorneys will discuss: Terms and Conditions and Legal Update Model Terms and Conditions Overview Connected and EV Sales Terms Battle of the Forms in the Real World: A Case Study
OEM Terms and Conditions Update
If you have never attended one of these sessions, we would invite you to attend the September 22nd meeting as a guest. For additional assistance please contact Erin Schrieber at OESA 248.430.5970 eschrieber@oesa.mema.org
10:25 a.m. Automotive Suppliers “Labor Recruiting & Retention”
Mike Jackson, Executive Director, Strategy and Research, OESA
In addition, Trevor Babi, Program Manager Battery Cells and Electrical Vehicles General Motors and Kayleigh VandenBussche, Economist and Business Planner, General Motors will share a presentation on the findings from a recent GM “Supplier Council - Labor Sub Committee” project focused on automotive supplier labor issues. This presentation will cover the key findings and best practices.
OESA COUNCIL HIGHLIGHT
The agenda for the virtual meeting is as follows: OESA 2022 Operations & Plant Manager Council September 22, 2022 10:00 a.m. ET | OESA Virtual Event 9:50 a.m. Participants Dial/log-In to Zoom 10:00 a.m. Introduction, Review Agenda, and OESA Events
Steve Horaney, Vice President, OESA 10:10 a.m. OESA Council Surveys, Economic and Industry Update
6 │ OESA News - 2022 Second Quarter
Operations and Plant Managers
Trevor Babi, Program Manager Battery Cells and Electrical Vehicles General Motors Kayleigh VandenBussche, Economist and Business Planner, General Motors 11:15 a.m. Roundtable Discussion 11:30 a.m. Meeting Close & Adjourn
Steve Horaney, Vice President, OESA
Suppliers and plant operations managers are invited to the OESA Operations & Plant Manager Council. The council meets virtually six times per year to share issues of common concern and to hear from industry experts. The next meeting is September 22nd and will feature Mike Jackson, Executive Director, Strategy and Research, OESA. Jackson will share an executive summary on OESA’s recent key surveys, an economic and market outlook and highlight key survey findings, and provide an economic and industry update.
Member Representative: Patrick Connors, Manager, Commercial Business Development Representative: John Sienkiewicz, Manager, Commercial Business Development Synergies Castings USA, Inc. E. Long Lake Suite 210 Troy, MI www.synergies-castings.com48085
Member
Adam Slaman Senior SponsorshipManager,SalesandMembershipDevelopment248.430.5958aslaman@oesa.org
7501
Erin
OESA News - 2022 Second Quarter │ 7 Welcome the newest OESA members OESA MEMBERSHIP Actify 400 Renaissance Center STE Detroit,2600MI www.actify.com48243
North America 840 Industrial
DAS Park Blvd AL 36117 www.i-das.com Representative: Junghyun Heo, Representative: Wonjun Jang, Sales/Development Paramount Blvd. Medina, OH www.thors.com44256
Member Representative: Angela Simones, PR Manager Representative: Peter West, VP of Marketing
Member Representative: Nayan Chirala, COO Alternate Representative: John MacDonald, General Manager Mfg. Co. Ltd. Chuff Rd. Northville, MI www.tsukiboshi.co.jp48158
8701
Senior Specialist THORS LLC 5054
Sales Director Alternate
Alternate
Montgomery,
Alternate
membership
Sales/Development Manger Alternate
1120
Member Representative: Fumio Isomura, Senior Sales Advisor
Tsukiboshi
Member Representative: Tim Haubenstricker, Representative: Senthil Kumar, OESA information, contact: Steve Horaney Vice shoraney@oesa.orgMembershipPresident,andSales248.430.5969 Schrieber eschrieber@oesa.organdMembershipManager,RecruitmentDevelopment248.430.5970
CHEP Automotive & Industrial Solutions Greenbriar Parkway Orlando, FL www.chep.com32819
Founder For
Senior
AUTOMOTIVE INSIDERS...LISTEN NOW
OESA and automotive industry expert Jason Stein have joined forces to present the Automotive Insiders hosted by Jason Stein podcast. It covers a broad-range of industry topics and trends that are impacting the future of automotive. The podcast is available on Amazon Music, Apple Podcasts, Google Podcasts, iHeartRadio, Spotify, Stitcher, and Pandora. New episodes are featured weekly. subscribe and listen, click here.
To
8 │ OESA News - 2022 Second Quarter
OESA News - 2022 Second Quarter │ 9 OESA UpcomingEVENTSCouncil Meetings: Sales Executive Council Chief Financial Officer Council Operations & Plant Manager Council Warranty Management Council Sept. 8 Sept. 15 Sept. 22 Sept. 29 Upcoming Events: S&P Global Mobility NAIAS Vehicle Tours Stellantis 23rd Annual Supplier Diversity Matchmaker Event Terms and Conditions Update Automotive Supplier Conference Sept. 14 - 15 Sept. 22 Sept. 28 Nov. 8 Upcoming 2022 OESA Town Hall Meetings Mark your calendar for the Members-Only OEM Town Hall Meetings. Registration information coming soon... Honda Town Hall Ford Town VolkswagenHallTown Hall Sept. 20 Nov. 29 Oct. 5
While it may feel intrusive to a prospective customer, suppliers also need to determine how to obtain accurate information about the proposed use of an exported product, which may change the treatment of the product under export controls. For example, certain products exported to China may be lawful for one use - but, if shipped to certain institutions for other uses, the export would be banned.
One more step suppliers should now take is asking whether it is prudent to supply the product to the proposed purchaser. The U.S. sanctions on Russian businesses and locations are a critical reminder that has, and should, prompt a supplier to carefully evaluate whether any new export customer is the right customer - Will the export easily fit within easily managed patterns? Is it likely that the export may be blocked in the future? Can the supplier properly position replacements and repairs if necessary?
This content (©2022 McDonald Hopkins PLC All Rights Reserved) is designed to provide current information regarding important legal developments. The foregoing discussion is general information rather than specific legal advice. Because it is necessary to apply legal principles to specific facts, always consult your legal advisor before using this discussion as a basis for a specific action. This material is not intended to create, and your receipt of it does not constitute, an attorney-client relationship with McDonald Hopkins.
Customer location and identity issues became frontpage news in February when President Joe Biden directed the federal administration to impose new sanctions on Russian businesses and individuals; other countries soon followed suit. Many businesses suddenly needed to assess whether they had customers on the denied party lists or if their customers were located in sanctioned regions. Because of the growing complexity of U.S. export laws and sanctions, most suppliers now need to maintain an export controls policy that is customized to their business. Experiences in 2022 disclosed that policies and process should not be static. They require prompt, organization-wide attention to avoid confusion, wasted energy, and potentially penalties for
For many suppliers, a frustrating export woe remains the continual review of customers and products to make sure that the changes to export restrictions and regulations have not changed applicable export Today,controls.compliance with export controls requires cooperation and communication among all parts of a supplier organization. We encourage suppliers to carefully update their export compliance policies, train new employees on relevant practices, and monitor U.S. administrative action pertaining to their products.
Althoughviolations.sometimes frustrating to inside and outside sales efforts, the first step to a good export controls policy requires diligence on the ultimate customer.
Export Woes: Who is Your Customer?
Automotive Practice
10 │ OESA News - 2022 Second Quarter “Do you know where our customer is located?” is a common question for many suppliers. Location impacts cost and timing of supply. And the location of your customer is now, more than ever, determining whether you can legally supply the customer.
U.S. export control laws and regulations require that suppliers “know their customers” by using all reasonable efforts to ascertain the end-use, the end-user, and the ultimate destination of goods. As Russian sanctions were imposed, many suppliers discovered they did not have the knowledge to meet this standard. Satisfying this standard requires an inquiry of the customer or potential customer in order to have sufficient information to check the relevant sanctions and denied parties lists. A good export controls policy also requires verifying the correct classification of the product to be exported. Many suppliers have relied upon export classifications used for many years. However, changes to product specifications could cause the product to be classified differently for U.S. Schedule B export codes. In some instances these changes have resulted in a product now being subject to export restrictions or sanctions.
By Jeff Van Winkle Member, McDonald Hopkins PLC International Business Counseling Insight from the McDonald Hopkins Group 39533 Woodward Avenue, Suite 318, Bloomfield Hills, Michigan mcdonaldhopkins.com48304
Marlon Tate Visual Marketing and mtate@oesa.org248.430.5959AdministratorTechnology
April Buford Executive Director, Marketing abuford@oesa.org248.430.5964Communications&
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