OESA News 2016 Third Quarter, Edition 3 by MEMA Original Equipment Suppliers

NEWS

Original Equipment Suppliers Association

2016 Third Quarter │ Edition 3

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 9 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’

With automotive innovation taking center stage in the industry, the future of the industry will be met with great opportunity and increased uncertainty. The supplier community also has its own unique set of challenges that it must address to determine the best direction for the future. Issues such as: • Who owns the intellectual property of automotive technology? • How can Tier 2 and 3’s better collaborate with Tier 1s? • How will the supplier community be impacted by the results of the upcoming election?

Julie A. Fream

President and CEO

"OESA's Annual Conference will delve into key issues impacting the automotive industry from a supplier perspective."

We will discuss these issues and more at the 18th OESA Annual Conference on Nov. 2, 2016, at COBO Conference 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.

OESA Annual Conference Nov. 2, 2016 COBO Conference 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.

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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

GUEST COLUMN MEXICO: AUTO SUPPLIERS NEEDED FOR KEY COMPONENTS Doug Donahue Vice President of Business Development│Entrada Group jpatel@wnj.com │ 248.784.5025

As a production location for the North America market, Mexico is a destination that is becoming increasingly difficult for Tier 2 and Tier 3 suppliers to ignore. Seven out of the top ten global automakers now manufacture light vehicles in Mexico, which is the world’s seventhlargest producer in that category. According to industry analyst IHS Automotive, auto OEMs alone invested more than $35 billion in new or expanded production facilities in Mexico throughout the past 15 years. Currently, more than 48 car and light truck models are produced in Mexico, and the list of large Tier 1 auto suppliers present in the country is a "Who’s Who" list of industry powerhouses. While these superlatives are impressive and the horizon looks promising, there is a glaring area of concern in Mexico’s auto manufacturing sector and it may prove to be an Achilles heel that hinders future development and expansion. Mexico’s supply base, particularly beneath the Tier 1 level, needs help. This shorage of Tier 2 and Tier 3 suppliers is a key finding in the latest white paper from Entrada Group, which guides manufacturers from around the world in establishing their own production footprint in Mexico in order to provide a competitive advantage. The 2016 survey of 100 auto suppliers reveals that while the presence of a reliable Mexico supply chain is paramount, quality concerns remain. Ninety percent of respondents currently producing in Mexico said that a strong Mexico supply chain is “very important,” but 23 percent of that same group labeled Mexico’s supply base as “Poor.” To cite just two examples, Mexico sources most of its resin from the U.S. and Europe, and lacks access to some of the more sophisticated processes, such as injection molding. About 70 percent of Tier 2 and Tier 3 basic components used in Mexico are imported into the country, according to Dietmar Ostermann, PwC’s global automotive advisory leader. That includes $6.4 billion in injection-molded components. To learn more about the need for certain components in Mexico’s auto sector, download the full white paper: “Despite Billions in Investment, Supply Challenges Remain for Mexico’s Auto Sector” from http://www.entradagroup.com/ whitepaper-despite-billions-in-investment-supply-challenges-remain-for-mexicos-autosector/.

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SUPPLIER BAROMETER

AUTOMOTIVE SUPPLIER BAROMETER: GLOBAL CONCERNS MAR SUPPLIER OUTLOOK

The most recent OESA Automotive Supplier Barometer survey focused on supplier finances and revealed important insight on what the supply base expects from the vehicle market and what their financial plans are. In general, suppliers remain optimistic on the market outlook, however there is growing pessimism as vehicle sales growth has slowed in recent years and talk of a possible U.S. economic recession gains steam. Financial budgets appear to be incorporating this view as well. The SBI (Supplier Barometer Index), which captures the overall market outlook of the supply base, fell significantly in July to 48, reaching its lowest level in more than four years. A score of 50 equates to being neutral on the market outlook, so the supply base is now in pessimistic territory. There are a number of contributing factors for this pessimism. Suppliers were asked about their level of concern regarding the Brexit vote’s impact on the industry, and nearly 70 percent of respondents stated they were at least somewhat concerned. However, when asked about the possible impact on their own company, 50 percent stated they are not concerned. These results, coupled with comments made by respondents, suggest suppliers are more concerned about the broader market volume impact from possible recession implications for Europe and the U.S., than they are about any direct impact on their own business. The July Barometer survey also focused on suppliers' financial outlook and 2017 plans. The results revealed “purchasing capital equipment” as the highest priority for suppliers in meeting their 2017 production volume targets, followed closely by "hiring of both hourly and salaried workers." And, expansion through partnerships, acquisitions and opening new facilities are even lower priorities. Another question pertained to 2017 spending. Nearly 80 percent of respondents expect more spending on talent and training (with 40 percent expecting at least a six percent spending increase), which supports the idea that hiring is a key priority for 2017. Nearly 60 percent of survey participants state there is a moderate likelihood of acquisitions over the next year, and more than 30 percent of the largest suppliers state there is a high likelihood. The main objectives are to gain new customers within automotive, and to gain access and capabilities relating to new technologies. Diversifying outside of light vehicles, and outside of automotive, were less important acquisition strategies. These financial strategies and objectives suggest suppliers are taking a more conservative approach, and focus more on labor than infrastructure in 2017. This strategy makes sense given the rising market pessimism and economic uncertainty. When asked how prepared their business is for the next downturn in the market, more than 75 percent of respondents were at least somewhat better prepared, and nearly 36 percent stated they were much better prepared. Focusing on labor rather than capital and M&A may provide suppliers the flexibility they expect they will need in an uncertain sales environment. For detailed information on the OESA Automotive Supplier Barometer, visit https://www.oesa.org/resource/oesa-automotivesupplier-barometer-studies.

Charles Chesbrough Executive Director, Strategy & Research and Senior Economist 248.430.5953 cchesbrough@oesa.org

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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

RECALLS: NAVIGATING THE NEW NORMAL │ 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 and J.D. Power, OESA is hosting Recalls: Navigating the New Normal on Sept. 7, 2016, at the Detroit Marriott Troy, Troy, MI. This event is designed to provide insight on the National Highway Traffic Safety Administration’s (NHTSA) current focus and priorities, relationships between OEs and suppliers, and industry best practices. The event will include breakout sessions to enable deeper conversations on each topic. For registration information, visit oesa.org or call OESA at 248.952.6401.

► SUPPORTING PARTNERS

Directors 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)

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OEM TERMS AND CONDITIONS OCT. 21 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

OESA EVENTS

NAVIGATING THE INTERSECTION OF TODAY’S AUTOMOTIVE IP AND IT │ SEP. 27 OESA and Warner Norcross & Judd LLP (WNJ) invite supplier executives to a breakfast briefing addressing data security and protecting supplier intellectual property (IP). The event, “Navigating the Intersection of Today’s Automotive IP and IT,” will be held on Sept. 27, 2016, at the MSU Management Education Center in Troy, Mich. In the fast moving world of automotive suppliers, it is essential to have the latest information on protecting intellectual property. WNJ Automotive Industry and Intellectual Property Practice Group 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. Topics to be covered include: •

Creating IP Jointly - Avoiding Antitrust Liability with JVs and JDAs

•

Electronic Data Management - Where IP, IT and IG Intersect

•

Cybersecurity - What it means for Auto Suppliers and Implications for IP Protection

•

Status of Inter Partes Review and Foreign IP in View of the BREXIT

•

Trade Secret Protection (what are you missing?)

•

IP Protection and Employment Matters

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

► SUPPORTING PARTNER

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 Douglas J. Grimm President & COO MPG Inc. Michael Haughey President North American Stamping Group 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

FIAT CHRYSLER AUTOMOBILES TOWN HALL MEETING OCT. 4 OESA is pleased to host a Fiat Chrysler Automobiles (FCA) Town Hall meeting for OESA members on Oct. 4, 2016, at the COBO Conference Center in Detroit, Mich. This meeting is an opportunity to hear from Scott Thiele, head of purchasing and supplier quality, FCA - North America, and speak with key decision makers from FCA supply chain management; purchasing and supplier quality; quality; engineering and manufacturing. This town hall is critical to suppliers. FCA recently announced major changes to improve supplier relations, support incremental production and support the launch of several critical programs. Additional initiatives address specific supplier concerns including tooling reimbursement and returnable container management. In addition, FCA has improved communication of assembly plant production schedules with weekly Tier 1 conference calls. Additional FCA senior executives will join Thiele for the town hall question and answer session. The main networking session with the FCA executives will be from 1 â&#x20AC;&#x201C; 2 p.m. with all component and material purchasing groups available for one-on-one supplier networking. Additional networking will follow the formal meeting. OESA members may register in the events section of http://www.oesa.org. For registration assistance and program information, contact OESA at 248.952.6401.

HONDA NORTH AMERICA TOWN HALL MEETING OCT. 13 OESA members and industry guests are invited to join Tom Lake, vice president, North American purchasing, Honda North America, Inc., and additional Honda purchasing executives for a town hall meeting, individual one-on-one conversations and an update on Honda in North America. The fifth annual OESA Honda North America Town Hall will be held on Oct. 13, 2016, at Burton Manor, Livonia, Mich. Lake will be joined by additional senior Honda executives for a town hall question and answer session. This is an important town hall to attend as more than 97 percent of Honda and Acura automobiles sold in the U.S. are produced in North America. In 2014, Honda manufactured a record 1.8 million automobiles in North America that was supported by $26.5 billion in parts and materials procurement in the region from 713 suppliers. Honda now operates eight plants in the region, including four in the U.S. that have a total capacity of 1.92 million vehicles. Honda executives will be available for networking with attendees beginning at 1 p.m. The town hall program will run from 2 p.m. to 3:30 p.m. and includes a corporate update, followed by the town hall style question and answer session. Honda executives will also be available after the event to speak individually with attendees. OESA members and industry guests may register in the events section of http://www.oesa.org. For registration assistance, contact OESA at 248.652.6401 or info@oesa.org.

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INSIDE OESA

OESA PARTNERS WITH THE AUTOMOTIVE NEWS PACE AWARDS TO PROMOTE SUPPLIER INNOVATION The Original Equipment Suppliers Association (OESA) is pleased to announce it is a Lead Sponsor for the 2017 Automotive News PACE Awards. For more than 20 years, the annual PACE (Premier Automotive Supplier’s Contribution to Excellence) Awards has honored superior supplier innovation in automotive systems, processes and connectivity. Winners will be announced on April 3, 2017, at the annual black-tie awards ceremony at the Max M. and Majorie S. Fisher Music Theater in Detroit, Mich. The awards ceremony spotlights the contributions of the supplier community in the automotive industry’s technological advancement and business performance. Information for the awards and event are available at autonews.com/pace.

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 café 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.

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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 Conference 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, Chief Technology Officer, MEMA Glen DeVos, Vice President Services Business Unit, Delphi Nakul Duggal, Vice President, Product Management – Automotive & IoE/M2M, CDMA Technologies, Qualcomm Julie A. Fream, President and CEO, OESA Craig Giffi, Vice Chairman and U.S. Automotive Leader, Deloitte LLP Jan Griffiths, Vice President, Global Supply Chain Management, Inteva Products Sarah House, Vice President and Economist, Wells Fargo Securities, LLC 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 Markit Dr. Mark Rosekind, Administrator, National Highway Traffic and Safety Administration Gary Silberg, Partner, The Americas Head of Automotive, KPMG Armando Tamez, CEO, Nemak Tolga Tuksal, Director of Corporate Purchasing, MPC, Inc. Carrie Uhl, Vice President of Procurement, Magna International, Inc.

• • • • • • • • • • 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. 14 │ OESA News - 2016 Third Quarter

Visit oesa.org to register; Advanced pricing ends Sept. 30, 2016.

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

OESA EVENTS

CALENDAR OF EVENTS UPCOMING OESA EVENTS AND ACTIVITIES Sept.

Sept..

Nov.

OESA OEM TOWN HALLS Oct.

Oct.

13 Dec.

UPCOMING COUNCIL MEETINGS* Sept.

Young Leadership Council 4 OESA Conference Center Southfield, MI

Sept.

Warranty Management Council MSU Management Education Center Troy, MI

Sept.

Environment, Health and Safety Council Robert Bosch Farmington Hills, MI

Sept.

Product Technology Development Council OESA Conference Center Southfield, MI

1 8

13 14

Sept.

Sales Executives Council MSU Management Education Center Troy, MI

Sept.

Chief Financial Officers Council MSU Management Education Center Southfield, MI

15 15

Sept.

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

Sept.

21 22 28

Chief Executive Officers Council OESA Conference Center Southfield, MI Small & Medium Enterprise Presidents Council OESA Conference Center Southfield, MI Tooling Council OESA Conference Center Southfield, MI

*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

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

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