PRESIDENT'S MESSAGE

Hello, hola, nı hao, and xin chào to our Summit team around the globe! Thank you for your dedication and your contribution to the success of our team.

It is hard to believe we are already halfway through 2023! This is an exciting and busy time at Summit.

Our three new plants will begin production this quarter. Plant 20 in Lawrenceburg, KY will make its first parts in August, Plant 22 in Ho Chi Minh, Vietnam will make its first parts in September, and Plant 21 in Leon, Mexico will make its first parts in October. If you have an interest in working in these locations, speak to your HR manager and keep your eye on new job postings. Summit’s business is growing providing job security and career growth for our team members.

As discussed in my Q1 letter, this year we are focused on improvement and “back to the basics”. This means each of us, every day executing, our core, standard systems and processes. This approach will guide us in four areas of improvement.

Operational excellence in our manufacturing plants and achieving our operational targets related to safety, quality, delivery, and cost

Material cost reduction from our supply base and through VA activities

Cost control in the plants and the tech center – carefully watch our spending Logistics and inventory cost reduction

I’d like to recognize operational excellence from teams across the company.

Safety: The following locations had zero recordable incidents over the past 12 months: Plant 13, 15, 16, 19, sales office, tool room, warehouse, and technical center. Fantastic performance!

Quality & Delivery: The following plants as of June have all “green” (highest performance ratings) with their customers for quality and delivery. Plant 1, 3, 8, 16, 17, 18, 19 Great job!

And, congratulations to P17 on their plant specific Supplier Quality Excellence Award from GM for their 2022 performance.

Cost:

The following plants as of June year to date have labor potential over 90%. Plant 1, 8, 13, 16, 19, 15, 17

The following plants as of June year to date have internal defect parts per million (PPM) under their plant specific target. Plant 8, 13, 16, 19, 15

The following plants as of June have their raw material DOH under their plant specific target. Plant 1 and 18 Fantastic teamwork!