OESA News - 2016 Third Quarter, Edition 2

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NEWS

Original Equipment Suppliers Association

2016 Third Quarter │ Edition 2

Register Now for the 2016 OESA Annual Conference

The Industry at a Crossroads November 2, 2016 │COBO Center │Detroit, Michigan To register, visit oesa.org

IN THIS ISSUE... 3 4 6

The Suppliers' Voice New Supplier Members New Affiliate Members

7 8 10

Legal Corner Supplier Barometer Upcoming Events

13 14 15

This edition is sponsored by

Inside OESA Annual Conference Calendar of Events


Keeping automotive suppliers ahead of the curve More than 200 automotive suppliers choose us as their trusted legal counsel because:

Expertise • Our automotive attorneys represent only suppliers, so there’s no inherent conflict that comes from representing OEMs and suppliers. • Our record of innovation and results spans supply chain terms & conditions, intellectual property, warranty & recalls, antitrust, M&A, litigation and more than 60 other areas of legal practice.

Leadership • We are co-founders of MICHauto. • We serve as legal counsel to the Sales Executive, Legal Issues and Young Leadership Councils of the Original Equipment Supplier Association (OESA).

Value • The value we deliver to clients stems from our Midwest principles. We’re hard working, practical and put a focus on teamwork. • Alternative fee arrangements allow us to focus on results, not the ticking of the clock. We’ll help you prepare for the curves ahead. Visit WNJ.com or contact either co-chair of our Automotive Industry Group:

thomas Manganello tmanganello@wnj.com +1.248.784.5007

Michael Brady mbrady@wnj.com +1.248.784.5032

Read AheadOfTheCurve.wnj.com The definitive law blog for navigating the automotive supply chain 2 │ OESA News - 2016 Third Quarter

A Better PArtnershiP ® By providing discerning and proactive legal counsel, we build a better partnership with clients.


Voice

The Suppliers’

OESA is excited to attend this year’s CAR Management Briefing Seminars (MBS). OESA was launched at MBS in 1998; since then, we have participated in this conference every year. This year, we will once again be among the many speakers and participants discussing the issues and important decisions needed to ensure a bright future for the automotive industry.

Just as the industry discusses issues from an overall perspective, the automotive supplier community must also discuss its most important challenges and determine the best direction to take during these uncertain times. This includes issues such as:

Julie A. Fream

President and CEO

"OESA is delighted to continue our strong relationship with CAR. Their Management Briefing Seminars and OESA's Annual Conference foster the necessary dialogue to navigate the challenges in the automotive industry."

• Is the North American market headed for a downturn? • How will the supplier industry be impacted by the results of the upcoming election? • Who owns the intellectual property of automotive technology? We will discuss these issues and more at the 18th OESA Annual Conference on Nov. 2, 2016, at COBO Center in Detroit. This year’s conference, “An Industry at a Crossroads,” will delve into key issues impacting the automotive industry from a supplier perspective. Reputable thought leaders, forecasters and economists will discuss key trends and share actionable insights designed to help suppliers stay at the forefront of the automotive industry. This year’s conference format will feature breakout sessions to allow for an in-depth look at: • Leading Through Uncertainty The panel discussion will focus on how to assess risk, approach it with confidence and plan for the unknown. • Advanced Vehicle Technology - The Increasing Pace of Innovation The panel of experts will discuss the positive and negative implications of advanced technology on the industry. • Tier 1 Purchasing Strategies and Opportunities Panelists from Tier 1 suppliers will outline their sourcing challenges and opportunities, and foster an open exchange of ideas to assist Tier 2 and 3 suppliers in growing their businesses. OESA is delighted to continue our strong relationship with CAR. Its Management Briefing Seminars and OESA’s Annual Conference both foster the necessary dialogue to navigate the challenges in the automotive industry. My team and I look forward to continuing to champion the business interests of the supplier community at each of these important events.

CAR Management Briefing Seminars

Aug. 1-4, 2016 Grand Traverse Resort and Spa Traverse City, MI

OESA Annual Conference Nov. 2, 2016 COBO Center Detroit, MI

As always, please feel free to contact me with comments and questions at 248.430.5963 and jfream@oesa.org. OESA News - 2016 Third Quarter

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OESA MEMBERS

DISCOVER THE VALUE OF OESA MEMBERSHIP Become an OESA member and join more than 430 supplier companies and affiliate organizations that are already represented by OESA. OESA champions the business interests of the supplier community in North America through government advocacy initiatives, relevant industry events and analysis, networking forums, global connections and the expertise of automotive thought leaders. Through OESA, members stay abreast of the industry and have access to exclusive information to make critical business decisions. To learn more about becoming a member of OESA, contact: Steve Horaney Vice President, Membership and Sales

Brenna McCann Senior Manager, Membership and Sales

248.430.5969 shoraney@oesa.org

248.430.5970 bmccann@oesa.org

WELCOME NEW SUPPLIER MEMBERS 300 Galleria Officentre, Suite 501, Southfield, MI 48034 Tel: (248) 728-8634 │ www.chassix.com Member Rep: Douglas DelGrosso, CEO Alternate Rep: Safi Hamid, Vice President, Sales Chassix is a $1.6 billion, privately-held global automotive supplier. The company is focused on delivering high-quality, precision ductile iron and aluminum chassis components, with more than 4,500 employees in 23 locations in every key region of the world.

255 Rex Boulevard, Auburn Hills, MI 48326 Tel: (248) 237-7800 │Fax:(248) 586-9519 │www.cspplastics.com Member Rep: Robert T. Simon, Vice President, Strategy Alternate Rep: Michael Senerius, Vice President, Sales & Marketing With more than 50 patents covering materials development and manufacturing processes, Continental Structural Plastics is a true pioneer in composite materials formulation, design and manufacturing technologies. It incorporates computer-aided engineering and design into every phase of the process, which provides customers with leading-edge, lightweight materials technologies and solutions for the automotive, heavy truck, building and construction industries.

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OESA MEMBERS

100 West Big Beaver Road, Ste 200, Troy, MI 48084 Tel: (248) 321-6416 │ www.eldor.it Member Rep: Marco Arienta, Sales Director North America Alternate Rep: Robert Kaylor, Account Representative Eldor Corporation is a leader in research, development and the production of ignition coils, electronic control units for controlling combustion based on analysis of current ionizing, and electric hybrid-systems. Thanks to the know-how, skills development and time-to-market sense, Eldor is one of the first companies in the world that can provide high-technology products and excellent quality; satisfying the growing demand for highly innovative solutions from the major automobile and motorcycle groups. Eldor products meet all the national and European prescriptions regarding the respect for the environment, as well as internal regulations of the automotive market. 6161 Underwood Rd., Pasadena, TX 77507 Tel: (713) 503-6373 │www.kaneka.com/kaneka-americas Member Rep: Kazuhiko Fujii, President Alternate Rep: Toshihiko Kanda, R&D Manager Kaneka Corporation, is a $5 billion producer of chemical products including resins, life science, food stuff, synthetic fibers and electronics. It was established in 1949 when its main products were caustic soda, soap, butanol, edible oils and electric wires. The company later diversified into polymers, fermentation, biotechnology and electronics, and other fields. Business activities now span a broad range of markets: synthetic resins, resin products, chemicals, foodstuffs, pharmaceuticals, medical devices, electronic products and synthetic fibers. Its 3,400 employees (9,400 including subsidiaries) are meeting customer needs on all continents; Kaneka has overseas subsidiaries in the United States, Belgium, Singapore, Malaysia, Australia, China, India, Brazil and other countries.

5005 E. McDowell Rd., Phoenix, AZ 85008 Tel: (602) 244-6600 │www.onsemi.com Member Rep: Daryl Hatano, Vice President, Government & External Affairs Alternate Rep: David Somo, Vice President, Corporate Marketing ON Semiconductor provides robust, AEC-qualified, PPAP-capable products for automotive applications, including active safety & autonomous driving; vehicle electrification; connectivity; LED lighting; and fuel economy & emissions reduction.

Michigan Sales Office 39555 Orchard Hill Place Suite 230, Novi, MI 48375 Tel: (248) 449-3323 │www.toyobo-global.com Member Rep: Kelly Matsubara, Sales Assistant & CAE Center Manager Alternate Rep: Manabu Takeuchi, General Manager Toyobo Engineering Plastics is a category leader in its core technologies of polymerization, modification, and customization. It has been contributing development and technical support to Japanese OEM’s since the 1970’s. Its specialized product line-up of resin raw materials is now available in the North American market with local compounding in the U.S. and Mexico.

OESA News - 2016 Third Quarter

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OESA MEMBERS

WELCOME NEW AFFILIATE MEMBERS 2000 Town Center, Suite 900, Southfield, MI 48075 Tel: (248) 368-8900 │ www.bakertilly.com Member Rep: Marie Galindo, Senior Manager, Mexico Growth Services Baker Tilly helps companies expand abroad with lower risk, faster time to market, and superior outcomes. For companies that do not yet operate abroad, Baker Tilly helps them expand internationally the right way from the onset. For companies already abroad, it helps them fix international-related issues. Founded in 1931, Baker Tilly Virchow Krause, LLP is a full-service global market expansion, accounting and advisory firm. Its market presence via a network of 800 offices in 141 countries places our 28,000 professionals is an extension of its customers' team in reaching global growth objectives.

6021 Wallace Road, Ste 300, Wexford, PA 15090 Tel: (412) 933-1180 │ www.Directworks.com Member Rep: Lisa Kustra, Executive Vice President Alternate Rep: Greg Anderson, President Directworks provides a better way for manufacturers to work across teams and with suppliers to develop, launch and deliver more profitable products. Leading manufacturers use Directworks’ cloud-based platform to more effectively engage stakeholders and suppliers at any stage of the product lifecycle to achieve greater product success. Directworks enables a higher degree of supplier engagement that promotes valuable product innovation, speed to market and cost improvements. Customer teams will improve product costs by using their time, and better information, to make smarter, data-driven supply decisions. The result will be a direct materials supply chain that is cost competitive and delivers high quality parts at lower risk.

280 Daines Street, Suite 300, Birmingham, MI 48009 Tel: (248) 765-2055 │ www.m1concourse.com Member Rep: Jordan Zlotoff, Director, Business Development Alternate Rep: Brad Olehansky, Founder and CEO M1 Concourse is both a private club and public destination designed to leverage the passion of the largest concentration of car enthusiasts in the world. The community of private garages will soon accommodate more than 1,000 classic cars set along a 1.5-mile performance track. A large portion of the project is open to the public, where people can enjoy restaurants, a walkable village of auto-focused businesses and year-round programming, including car shows, concerts, product demonstrations and more. The idea for M1 Concourse grew directly and organically from the needs of the local auto enthusiast community. Complete details can be found at www.m1concourse.com.

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LEGAL CORNER

TRAPPED IN AN UNPROFITABLE CONTRACT? MAYBE NOT: EXIT STRATEGIES YOU NEVER KNEW YOU HAD Jeena Patel Partner │Warner Norcross & Judd LLP jpatel@wnj.com │ 248.784.5025

You know the drill. You have an opportunity to win a huge contract for your company, but the customer terms and conditions are one-sided and onerous, and you don’t have a unique product to give you the leverage to negotiate more balanced terms. But, the rewards outweigh the potential risks (or so you think), so you move forward, accepting all of the customer’s purchase orders and terms and conditions. Then two years into the program, your worst fears materialize and there’s a raw material shortage and prices go through the roof. Your contract goes from being a “must have” deal to a “must dump” deal because it’s costing your company millions of dollars. What now? You’re trapped in a bad deal with several more years. But, are you really stuck? A closer look at the quantity and duration terms of your contract may prove otherwise. Often times, despite what suppliers may believe based on having received and quoted to the customer’s estimated program volumes, suppliers don’t have a “requirements” contract with their customers. Instead, they have nothing more from their customers than a blanket purchase order that is subject to releases. Those are the same thing, aren’t they? The answer is no, they aren’t. Even though some in the industry use the terms interchangeably, they are two distinct types of documents with vastly different consequences for both the supplier and the customer. Under a requirements contract, the supplier must supply to the customer, and the customer must buy from the supplier, some specified portion of the buyer’s requirements for the parts for the duration of the contract. Unlike in a requirements contract, there is no language in a blanket purchase order mandating that the customer purchase its requirements from the supplier. Even if it includes language purporting to require the supplier to supply the customer’s requirements, a blanket purchase order typically includes language that limits the customer’s obligations to purchase only those quantities specified in a release. The customer has the option, not the obligation, to issue releases for the

parts. The blanket purchase order simply sets the pricing and other terms that apply if the customer issues, and the supplier accepts, a release. In other words, each release is a separate contract, which the supplier is free to accept or reject. So, if you’re operating under a blanket purchase order rather than a requirements contract, after you fulfill the last accepted order, you likely have the ability to reject all future releases and terminate the relationship or simply to reject future releases until you obtain the improved terms that you need. Of course, all contractual relationships are unique, and there is certainly a possibility that a judge or jury could find that you have a requirements contract created by conduct (i.e., your course of performance or course of dealing with your customer). But, this is undoubtedly an option to explore with counsel in the event that you need to get out of a losing agreement. The absence of an enforceable requirements contract, however, isn’t your only potential leverage point. Sometimes contract duration is the key to your escape from a bad deal. Where a purchase order includes a placeholder end year, such as 9999, lacks an end date entirely, or purports to go on indefinitely, a supplier should seek to avail itself of the benefits of Section 2-309 of the Uniform Commercial Code, which provides that such a contract is valid for a reasonable time, but can be terminated at any time by either party. In other words, even if the vehicle program has another four years on it, you may have an opportunity to terminate the contract early or to renegotiate with your customer. Even if you don’t have a contract of an indefinite duration, if your purchase order automatically renews after a limited time period, you can exit, thus limiting the impact of an unfavorable contract. You must, however, actively monitor the date by which you provide notice of non-renewal and act accordingly. Or, if your customer is not proactively seeking a replacement supplier, your timely notice of non-renewal may well catch your customer unprepared to resource fast enough to avoid an interruption in supply, and, thus, unable to deny your requested revised terms to continue supplying the parts. In fact, for those customers for whom you supply parts on multiple programs, you may also be able to leverage the non-renewal or expiration of one purchase order to obtain improved terms on all of them. In sum, if you find yourself itching to get out of a losing or otherwise undesirable supply relationship, don’t assume that you’re trapped. You may be able to leverage the deficiencies or gaps in the contract documents with your customer to escape the relationship altogether, or more likely, to negotiate your way to a better deal. Obviously, these tactics could backfire and do more long-term harm than good if you use them on a significant customer. So, before you go playing hardball, talk to a legal professional and your key business people to make sure you’re on solid ground, both from a legal and strategic perspective. Of course, these same creative exit/negotiating tactics could be used against you by your own suppliers, so be sure that you proactively protect yourself against them too. OESA News - 2016 Third Quarter

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SUPPLIER BAROMETER

THE AUTOMOTIVE SUPPLY BASE: CHOOSING SIDES IN THE OUTLOOK DEBATE

The automotive industry has come a long way from the depths of The Great Recession. When annual sales fell to just 10.4 million units in 2009, and bankruptcies and layoffs ruled the day, the idea that new vehicle sales would reach record levels just six years later seemed preposterous. Yet that is exactly what happened in 2015 when the market reached 17.5 million. However, the industry is facing uncertainty once again with concerns rising that the next downturn is just around the corner. There seems to be two schools of thought on “what’s next” for the U.S. light vehicle market. Some see the sales pace as having reached its peak while others believe there is still enough momentum for even higher sales levels to be achieved. As on Wall Street, the auto industry now has its own “Bulls” and “Bears”, and there is plenty of evidence to support both views. The “Bears” believe the vehicle sales pace reached its peak in the fall of 2015 when annualized selling rates exceeded 18 million units for three straight months. Since then, the pace has trended lower, with car sales leading the way down. This group expects the U.S. economy will slow over the next two years, possibly enter into a mild recession, and for vehicle sales to fall below 17 million. Today, weakness in energy investment from cheap oil, and in trade from the strong dollar, are already taking a toll on economic growth. In addition, the U.S. is in the later stages of recovery from The Great Recession. Slower growth rates in many contributing factors such as household formation, housing starts, job growth, coupled with the FED’s wish to raise interest rates, can only negatively impact vehicle affordability and demand. This view, while not a pleasant one, does merit consideration. U.S. economic cycles, which the automotive market follows closely, generally result in a recession every 6-8 years, so we are just about due for a recession based solely on timing. Looking at the historical behavior of unemployment rates and initial unemployment claims, these indicators suggest that we are getting very close to the next downturn, as historically, conditions don’t stay at these low levels for long. (see chart).

U.S.: Employment Conditions

Employment conditions strong – concern is that economy doesn’t stay at these levels for long

Initial Claims (4 week moving average)

Unemployment Rate (%)

700,000

12

650,000

10

600,000 550,000

8

500,000 450,000

6

400,000

4

350,000 300,000

2015

2010

2005

2000

1995

1990

1985

1980

0

1975

2015

2010

2005

2000

1995

1990

1985

1980

1975

1970

200,000

1970

2

250,000

Source: Department of Labor, Bureau of Labor Statistics

Join. Engage. Advance.

2

However, there is also evidence to support the opposite view. The “Bulls” think the recovery has further to go; that the economy and light vehicle market has more upside potential; and it will remain favorable for a number of years. Their view is that employment conditions are relatively strong, wages are rising (albeit at a slow pace), and equity markets continue to flirt with all-time highs, all contributing to a continuation of strong buying conditions. 8 │ OESA News - 2016 Third Quarter


SUPPLIER BAROMETER

In addition, aggressive OE leasing, and a plethora of new, innovative products is still attracting new customers. It is hard to argue with this view as well, as interest rates remain near historic lows, job creation and wages are growing, and the housing market is still far from fully recovered. Credit conditions, one of the most important factors, also remain strong with lending levels high, and low interest rates and longer loan terms are keeping monthly payments affordable for new buyers. Based on recent data from the OESA Supplier Barometer Index (SBI), the North American supply base appears to be choosing sides. Each quarter, OESA surveys members to analyze their level of optimism on the business outlook for the industry. At the mid-point, 50, respondents are neutral on the industry’s prospects, while above 50 suggests a more optimistic view, and below indicates growing pessimism. In July, the Barometer fell to 48, down significantly from Q1’s score of 55. The SBI is now at its lowest point since September 2012 when the automotive market faced great uncertainty due to the Greek debt crisis in Europe and the “fiscal cliff” crisis in the U.S. Cleary, the volatility brought about by the recent Brexit vote has concerned suppliers, but many also commented on concerns regarding the upcoming presidential election, the volume declines in the car segment, and the overall decline of sales growth. The longer-term trend in the SBI though is even more revealing: “Bears” are slowly overtaking the “Bulls”. Since the index’s peak, reached during the recovery period after the 2009 collapse, the Barometer, while volatile, has trended lower. Over the last three years though, the supplier optimism level has steadily fallen and is now approaching negative territory.

Although many of the unknowns facing the industry will be revealed in coming months – the U.S. election, the pace of interest rate increases, and the actual economic impact of the Brexit vote – one main concern will not dissipate, the U.S. economy is much closer to the next recession than the one in the rearview mirror. For more information: Charles Chesbrough Executive Director, Strategy & Research and Senior Economist 248.430.5953 cchesbrough@oesa.org OESA News - 2016 Third Quarter

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OESA EVENTS OESA Board of Directors Chairman of the Board Samir Salman* CEO NAFTA Region Continental Automotive Systems, Inc. Immediate Past Chairman Daniel E. Sceli* President and CEO Peterson American Corporation Vice Chairman Mike Mansuetti* President Robert Bosch LLC Vice Chairman Michael E. Martini* President, Consumer OE Bridgestone Americas Officer Julie A. Fream* President and CEO Officer Steve Handschuh* President and CEO Motor & Equipment Manufacturers Association *Executive Committee

Directors

MEXICO – THE MYTHS, THE REALITIES AND THE OPPORTUNITIES │ AUG. 16 When you think about doing business in Mexico, do you worry about the news headlines or do you focus on the business opportunities? Do you know what it truly takes to be successful in Mexico? On Aug. 16, 2016, OESA will host “Mexico – The Myths, The Realities and The Opportunities” at the MSU Management Education Center in Troy, MI. The meeting will highlight the opportunities in Mexico in the coming years and cover what it takes to be successful in Mexico. If you are considering investing in Mexico, or want to take it to the next level, join OESA and our partners for this important event. Industry leaders will share insight on: • Opportunities and challenges in the market • The latest Mexico production numbers and insights about the future • Current legal issues facing U.S. companies doing business in Mexico • Opportunities available in Mexico and how shelter companies can help • Legal and business challenges established automotive suppliers face For registration information, visit oesa.org or call OESA at 248.952.6401. ► SUPPORTING PARTNERS

Oscar Albin Executive President INA, National Association of Automotive Parts Manufacturers in Mexico Paul Barnett President Principal Manufacturing James Bradbury President Grand Rapids Controls Company LLC Laurent Bresson President and Global CEO Nexteer Françoise Colpron CEO North America Valeo David C. Dauch Chairman and Chief Executive Officer American Axle & Manufacturing (Continued on page 11)

VOLKSWAGEN GROUP OF AMERICA TOWN HALL MEETING │ AUG. 25 OESA members are invited to participate in the eighth annual Volkswagen Group of America Town Hall on Aug. 25, 2016, at the Suburban Collection Showplace, Novi, MI. VW’s executive vice president, purchasing, Mahesh Kodumudi, will discuss Volkswagen’s sourcing strategy and regional footprint, and Michael Lovati, general manager, commodities, Volkswagen Group of America, will present Volkswagen’s plan for localizing content, cost optimization and what that means for suppliers’ long-term opportunity. Following the formal presentations, Marty Ross, manager, central functions, Volkswagen Group of America, will join Mr. Kodumudi and Mr. Lovati for a candid question and answer session. Volkswagen executives will be available for networking from 1 – 2 p.m. and following the formal meeting. For registration information, visit oesa.org or call OESA at 248.952.6401.

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OESA EVENTS

OESA MEMBER APPRECIATION AUG. 26 OESA members are cordially invited to attend the 2016 OESA Member Appreciation Event on Friday, August 26, 2016, at the all-new M1 Concourse in Pontiac, MI. This annual event acknowledges the OESA member organizations that support the association through their engagement in OESA peer group councils and events. Join OESA and automotive industry executives from 3:30 – 6:30 p.m. for thrill rides on the performance track, strolling dinner, music and fun.

OESA Board of Directors (Continued from page 10)

Directors Jacqui Dedo Co-Founder Aware Mobility LLC. Paul Doyle CEO Coastal Automotive John Dunn President and CEO, The Americas Plastic Omnium Auto Inergy

Partnership opportunities are still available for this event. Contact OESA for details.

Douglas J. Grimm President & COO MPG Inc.

For registration information, visit oesa.org or call OESA at 248.952.6401.

Michael Haughey President North American Stamping Group

OESA/SCAC SOUTH CAROLINA REGIONAL SUPPLIER MEETING │ AUG. 30 OESA and South Carolina Automotive Council (SCAC) invite automotive manufacturers and suppliers to attend the OESA/SCAC South Carolina Regional Supplier Meeting on Aug. 30, 2016. The event will be held at the prestigious Clemson University International Center for Automotive Research (CU-ICAR) in Greenville, S.C., and hosted by Fred Cartwright, Executive Director of CU-ICAR. As a special opportunity, there will be an optional plant tour of the Proterra Inc. facility. Proterra was founded in 2004 with a vision to design and manufacture world-leading, advanced technology heavyduty vehicles, which are now powered solely by batteries. Proterra’s mission is to provide clean, quiet transportation for all by replacing heavy-duty fossil fuel transit buses with zero-emission electric vehicles. For registration information, visit oesa.org or call OESA at 248.952.6401. ► SUPPORTING PARTNER

► IN COOPERATION WITH

Ramzi Hermiz President and CEO Shiloh Industries, Inc. Don Manvel Chairman and CEO AVL Americas Lon Offenbacher President and CEO Inteva Products Michael Robinet Managing Director IHS Automotive Wes Smith President and CEO E & E Manufacturing Co., Inc. Armando Tamez CEO Nemak Jim Teets President and CEO ADAC Automotive Nigel Thompson President and CEO Yazaki North America, Inc. James Verrier President and CEO BorgWarner Inc.

For more information and to register, visit oesa.org, or call OESA at 248-952-6401. OESA News - 2016 Third Quarter

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OESA EVENTS

RECALL EVENT │ SEP. 7 With an ever-evolving environment and increased attention in all aspects of our business, recalls continue to be a hot topic for the automotive supplier industry. In partnership with Brooks Wilkins Sharkey & Turco PLLC, Bush Seyferth & Paige PLLC, and J.D. Power, OESA is hosting a Recall Event on Sep. 7, 2016, at the Detroit Marriott Troy, Troy, MI. This event is designed to provide insight on NHTSA’s current focus, examine the relationships between OEs and suppliers, and discuss best practices. The event will include breakout sessions to enable in-depth conversations on each topic. Save the date. Registration information coming soon. ► SUPPORTING PARTNERS

THE INTERSECTION OF INTELLECTUAL PROPERTY AND INFORMATION TECHNOLOGY IN TODAY’S AUTOMOTIVE │ SEP. 27 Supplier executives are invited to a briefing on data security and protecting supplier intellectual property (IP). The event, “The Intersection of IP and IT in Today’s Automotive Realm,” will be held on Sep. 27, 2016, at the MSU Management Education Center in Troy, MI. In the fast moving world of automotive suppliers, it is essential to have the latest information for protecting intellectual property. Warner, Norcross & Judd attorneys Michael Brady, Jay Yelton, Dawn Ward, Nate Steed, Randy Peck, Greg DeGrazia and Steve Palazzolo will define and discuss legal issues potentially impacting suppliers as IP and information technology (IT) converge. For registration assistance, please contact OESA at 248.952.6401 or visit oesa.org. ► SUPPORTING PARTNER

OEM TERMS AND CONDITIONS │ COMING SOON OESA and Butzel Long are planning the annual OEM Terms and Conditions briefing to discuss the industry’s current legal and commercial issues. The meeting and webinar will focus on relevant supply chain issues, recent case law and emerging topics of importance to suppliers. Registration information coming soon. ► SUPPORTING PARTNER

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INSIDE OESA

PACE AWARDS:

RECOGNIZING INNOVATIONS IN THE INDUSTRY OESA is pleased to support the Automotive News PACE Awards. The Annual PACE award spotlights supplier innovations in automotive systems, processes and connectivity. OESA members are encouraged to submit their game-changing and commercialized innovations in technology and processes. Winners will be announced Apr. 3, 2017 at a black tie awards ceremony at the Max M. and Marjorie S. Fisher Music Center in Detroit. Information and applications for the award are available at autonews.com/pace. The deadline to apply is Sep. 2.

OESA/MERA

CONFERENCE CENTER AVAILABLE FOR RENT

The OESA/MERA Conference Center is a full-service meeting facility and professional venue for meetings, training seminars and small conferences. It offers tailored service options from simple room rental to fully-staffed provisions and custom catering. The center features a state-of-the-art presentation system, free Wi-Fi, separate meeting cafĂŠ and on-site staff. Centrally-located in the Detroit Metro area at the Riverside Center Building in Southfield, MI, guests are greeted in the main lobby by building security staff and directed to the Conference Center on the 3rd floor. For rental information, contact OESA at 248.952.6401.

OESA.ORG RELAUNCHED

As part of our continuous improvement efforts to better serve our members and the automotive industry, OESA has launched a new website with easier site navigation, faster access to industry information and analysis, and an all-new member portal. OESA appreciates the opportunity to represent the business interests in the automotive supplier industry. Our new website improves that experience. Visit the all-new oesa.org today.

OESA News - 2016 Third Quarter

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OESA EVENTS

OESA 2016 ANNUAL CONFERENCE THE INDUSTRY AT A CROSSROADS │ NOV. 2 2016 OESA Annual Conference

The Industry at a Crossroads

November 2, 2016 │COBO Center │Detroit, Michigan

Register now for the 18th Annual Conference on Nov. 2, 2016 at COBO Center in Detroit, MI. This year’s conference, “The Industry at a Crossroads” promises to deliver key insights, discuss important trends and provide actionable recommendations to stay abreast of the industry’s new direction. Confirmed presenters include:

• • • • • • • • • • • •

Charles Chesbrough, Executive Director, Strategy & Research and Senior Economist, OESA Brian Daugherty, CTO, MEMA Julie A. Fream, President and CEO, OESA Craig Giffi, Vice Chairman and U.S. Automotive Leader, Deloitte LLP Rich Karlgaard, Publisher of Forbes, and Author, “Team Genius: The New Science of High-Performing Organizations” John McElroy, Host, Autoline Daily Xavier Mosquet, Senior Partner & Managing Director, Boston Consulting Group, Inc. Emily Kolinski Morris, Chief Economist, Ford Motor Company Michael Robinet, Managing Director, IHS Automotive Dr. Mark Rosekind, Administrator, National Highway Traffic and Safety Administration Gary Silberg, Partner, The Americas Head of Automotive, KPMG Ann Wilson, Senior Vice President, Government Affairs, MEMA

New for this year’s event are three concurrent breakout sessions that will explore the industry’s opportunities and challenges:

• Leading Through Uncertainty • Tier 1 Purchasing Strategies and Opportunities • Advanced Vehicle Technology - The Increasing Pace of Innovation A limited number of event partnership opportunities are still available. Promote your product or service to more than 700 automotive industry executives and receive free tickets to the automotive supplier-centric event of the year through an exclusive partnership or exhibitor agreement.

Visit oesa.org to register; Early bird pricing ends Sep. 30, 2016.

For partnership information contact: Brenna McCann Senior Manager, Membership and Sales 248.952.6401 bmccann@oesa.org

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OESA EVENTS

CALENDAR OF EVENTS UPCOMING OESA EVENTS AND ACTIVITIES Aug.

16

Aug.

26

Aug.

30

Sep.

7

Sep.

27

Nov.

2

REGISTER NOW! OESA Mexico – The Myths, The Realities and The Opportunities MSU Management Education Center, Troy, MI

REGISTER NOW! OESA Member Appreciation M1 Concourse, Pontiac, MI

REGISTER NOW! SCAC South Carolina Regional Supplier Meeting CU-ICAR, Greenville, SC

SAVE THE DATE Recall Event Detroit Marriott Troy Troy, MI

REGISTER NOW! Intersection of IP and IT in Today’s Automotive Realm MSU Management Education Center Troy, MI

REGISTER NOW! OESA Annual Conference COBO Center Detroit, MI

OESA OEM TOWN HALLS Aug.

25

REGISTER NOW! Volkswagen Town Hall Meeting Suburban Showplace, Novi, MI

Oct.

SAVE THE DATE FCA Town Hall Meeting COBO Center, Detroit, MI

Oct.

SAVE THE DATE Honda Town Hall Meeting Burton Manor, Livonia, MI

Dec.

SAVE THE DATE Ford Town Hall Meeting Ford Headquarters, Dearborn, MI

4

13 2

UPCOMING COUNCIL MEETINGS* Aug.

Chief Purchasing Officers OESA Conference Center Southfield, MI

Aug.

Young Leadership Council 3 OESA Conference Center Southfield, MI

Aug.

Communication Executives OESA Conference Center Southfield, MI

11

18 24

*Open to council members & invited guests.

For more information and to register, visit oesa.org, or call OESA at 248.952.6401.

OESA News - 2016 Third Quarter

│ 15


Original Equipment Suppliers Association Check out our online publication at www.oesa.org/news

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 Director, Communications

Jeff Laskowski Manager, Communications

Alia Bazzi Website and Graphic Designer

248.430.5964 abuford@oesa.org

248.430.5950 jlaskowski@oesa.org

248.430.5958 abazzi@oesa.org


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