NEWS
Original Equipment Suppliers Association
2018 Second Quarter │ Edition 3
June 14
OESA /SCAC South Carolina Regional Supplier Meeting | Register Today!
IN THIS ISSUE... 3 4 6
The Suppliers' Voice Supplier Pulse CTO Update
8 Guest Column 11 New Members 15 OESA Events
19 Save the Dates 20 Council Feature
This edition is sponsored by: OESA News - 2018 Second Quarter
│1
July 30 - August 2, 2018 Grand Traverse Resort | Traverse City, Michigan, USA
The automotive industry is moving in bold new directions. The CAR Management Briefing Seminars is at the nexus of the automotive industry and new mobility transformation, providing an unmatched blending of topics that delivers outstanding analysis of this fast-paced business. Don’t miss CAR MBS to see where the future of mobility is headed and how it will affect your company.
SPEAKERS INCLUDE: Bo Andersson
President & CEO Yazaki North & Central America President Yazaki Europe
Mike Bafan President
Toyota de Mexico
Jennifer Dukarski
Shareholder & Leader, Autonomous and Connected Vehicle Group
Butzel Long
Vice President, Connected & Environmental Business Development American Honda Motor
Jeneanne Hanley
Dr. Detlef Juerss
Lear Corporation
Adient
Senior Vice President & President, E-Systems
Andrew Lund
Claus Möhlenkamp
Toyota Motor NA
Freudenberg Sealing Technologies
Chief Engineer, Product Development Office
Steven Center
CEO
Vice President Engineering & Chief Technology Officer
María Helena Antolín Raybaud Director, Vice-chair & member of the Board of Directors
Grupo Antolin
REGISTER TODAY www.cargroup.org/mbs
2 │ OESA News - 2018 Second Quarter
#CARMBS
Voice
The Suppliers’
Julie A. Fream
President and CEO
OESA/MEMA: Ensuring the Suppliers' Voice is Heard in Washington, D.C.
The Motor & Equipment Manufacturers Association (MEMA) – OESA’s parent organization – recently testified in opposition of the tariffs imposed on steel and aluminum. Our position is clear: While we support the administration’s focus on building a strong domestic steel and aluminum market, these tariffs will: • • •
Limit access to necessary specialty products Raise the cost of motor vehicles to consumers Impair the industry’s ability to compete in the global marketplace
"It is an honor to champion the business concerns of the supplier community. Together with MEMA, OESA will ensure the voice of suppliers is heard."
Based on the feedback of our members, MEMA argues that tariffs on steel and aluminum will hurt the largest sector of manufacturing jobs in the United States. Many specialty materials and components imported by suppliers are used by hundreds of vehicle parts manufacturers. Suppliers' access to these specialty products is critical to the industry and the integrated global supply chain. Disruptions to the supply chain and increases in production costs will directly impact consumers, suppliers and the U.S. economy. Additionally, OESA and MEMA were disappointed the Trump administration recently announced the investigation of imposing 232 tariffs on motor vehicles and motor vehicle parts. The U.S. automotive industry needs to operate as part of the global supply chain in order to remain competitive. Imposing 232 tariffs on motor vehicles and motor vehicle parts will put American competitiveness and jobs at risk. Share your voice and stay informed: Become a member of the MEMA Government Affairs Committee (GAC) Made up of motor vehicle parts suppliers, the GAC determines MEMA’s key legislative and regulatory priorities on the state and federal level. Members are also encouraged to contact the MEMA Government Affairs team to discuss their organization’s unique situation as it pertains to tariffs. The more information MEMA can collect, the better it can represent the voice of the supplier community. To learn more, please contact Catherine Boland at cboland@mema.org. It is an honor to champion the business concerns of the supplier community. Together with MEMA, OESA will ensure the voice of suppliers is heard. As always, please feel free to contact me at 248.430.5964 or jfream@oesa.org.
OESA News - 2018 Second Quarter
│3
SUPPLIER PULSE
SUPPLIER BAROMETER REFLECTS RESILIENT AND DYNAMIC SUPPLY CHAIN Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org
Supplier optimism is holding firm at a healthy level across the automotive supply base, especially given the dynamic environment involving market factors, policy matters and geopolitical events in 2Q 2018. The OESA Automotive Supplier Barometer, a quarterly survey of automotive supplier executives in North America on their 12-month outlook, posted a positive reading of 53 for the second quarter of 2018. The latest OESA Supplier Barometer Index (SBI) reading dipped four points from the 1Q 2018 score, albeit from a three-year high, in the aftermath of passage of the Trump administration’s tax reform plan. The latest 2Q 2018 index reading reflects sustained momentum and holds two points higher than 2Q 2017. The themes of Capital Markets and Innovation are driving the second quarter 2018 Supplier Barometer survey results. Capital investments are slated to grow meaningfully in the next 12 months, with 53 percent of survey respondents affirming somewhat or significantly higher levels of investment over the next year. Moreover, supplier executives anticipate dramatically higher capital investments in product innovation, with 70 percent of respondents calling for somewhat or significantly higher levels of product innovation investment in the next year. Supplier Barometer Index - Opinions reflect greater optimism for smaller companies that tend to be more regionally focused than larger companies, compared to prior quarter results. Product launches continue to drive new business, and a healthy market is paving the way for new opportunities as the industry adds new vehicles, advanced technologies, and additional hybrid and battery electric offerings. Despite the modest decline to the SBI in 2Q due to policy uncertainty, sentiment is holding in positive territory due to strong economic fundamentals as well as balanced inventories and healthy production volumes. Concerns remain over supply chain risks, commodity prices and the impact of government policy such as Section 232 and Section 301 tariffs, as well as the fate of NAFTA negotiations, including material changes to rules of origin that would hurt competitiveness.
"Supplier executives anticipate dramatically higher capital investments in product innovation"
Capital Markets - New product launch activity is a key driver of capital investment, which is slated to jump 33 percent to 32 launch events in 2018. Light truck activity will account for 75 percent of regional launches in 2018, or 24 of the 32 planned launch events. Over the near-term, launch activity is forecast to average a period high of 36 events per year from 2018 to 2020. Moreover, vehicle output remains robust, as OESA’s Affiliate Forecast Matrix reflects regional output of 17.2 million units in 2018. Innovation - According to 70 percent of supplier executive respondents, product innovation is expected to drive somewhat or significantly higher capital investments. Based on the latest survey results, 20 percent of respondents anticipate double digit increases in capital spending in 2018. Open Innovation is a key trend that is transforming the processes and scope of supplier innovation by leveraging internal and external expertise. Current capital strategies support open innovation, with 34 percent of respondents indicating support for a high or very high level of open innovation while more then 71 percent of respondents reflect a moderate to very high level of such support.
4 │ OESA News - 2018 Second Quarter
SUPPLIER PULSE The automotive industry is poised to achieve another remarkably strong year, underscored by the fact that for the first time ever, North American vehicle production is forecast to surpass 17.0 million units for the fifth consecutive year. Such a sustained period of robust output provides a unique opportunity to prepare for the future by evaluating supplier strategies to fund future innovation. Suppliers need to be well positioned to compete in today’s already dynamic global environment while also preparing to capitalize on emerging opportunities. In many cases, this will involve new technologies, processes and business models. To this end, 48 percent of supplier respondents anticipate higher capital investments allocated to mergers and acquisition activity over the next year. Additionally, 71 percent of suppliers indicate their capital planning process helps them achieve their innovation objectives by leveraging external partners to accelerate innovation and learning. Findings from this survey, to be released 2Q 2018, plus all of OESA's past Automotive Supplier Barometers can be found at https://www.oesa.org/resource/oesa-automotive-barometer-studies.
"Suppliers need to be well positioned to compete in today’s already dynamic global environment."
The OESA Automotive Supplier Barometer captures the pulse and analyzes the twelve-month business sentiments of top executives in the supplier industry. It is a quarterly snapshot of their concerns on commercial issues, the business environment and strategies that influence the supplier industry. This Barometer is distributed to vehicle manufacturers, financial institutions, governmental officials and the media to provide an on-going profile of the trends in the supplier industry.
OESA News - 2018 Second Quarter
│5
CTO UPDATE
CURRENT PERSPECTIVES ON ADVANCED VEHICLE TECHNOLOGY Brian Daugherty Chief Technology Officer - MEMA 248.430.5966 │ bdaugherty@mema.org
The pace of technology change within our industry continues to amaze most observers and several recent announcements show that this fast pace continues. We have recently seen some interesting developments. V2V - The U.S. vehicle industry has been waiting one and a half years for NHTSA’s final rulemaking regarding Vehicle-to-Vehicle communications (V2V), but due to heavy lobbying to share the same 5.9 GHz frequency spectrum, it remains unreleased. V2V is also known as Dedicated Short Range Communications or DSRC. Toyota’s recent announcement that they will begin equipping all of their vehicles with V2V equipment in the U.S. starting in 2021 is a great step forward in the industry’s effort to reduce fatalities. It has also resulted in some drama. Interestingly, two FCC commissioners were seemingly against this move – even though the 5.9 GHz spectrum is reserved strictly for vehicle safety use – and sent an unusual letter to Toyota warning them that this might not be wise. Toyota responded with another letter explaining that "MEMA believes – as does in the interests of vehicle safety it was necessary: “We are comfortable NHTSA – that this technology with our decision to commit capital expenditures to DSRC technology because we are confident that the Commission will implement a sharing offers significant safety benefits as both new and aftermarket mechanism only if that testing fully validates that unlicensed operation equipment for heavy and light can safely occur in the band, and not disrupt the current or further vehicles." deployment of this important safety technology by existing licensees.” GM is currently selling a version of the Cadillac CTS sedan with V2V technology as well, but in limited quantities. Hopefully, if additional OEMs join Toyota in rolling out this technology across their fleets, we can effectively jump start the roll-out of V2V technology in the U.S. MEMA believes – as does NHTSA – that this technology offers significant safety benefits as both new and aftermarket equipment for heavy and light vehicles. AV - The speed at which automated vehicle (AV) technology has sparked the interest of the world media and consumers continues unabated. However, several recent fatal accidents have increased the debate over the pace of development and whether current test protocols adequately protect pedestrians and other vehicles during public road testing. On March 18, an Uber automated test vehicle (SAE Level 4) operating with a safety driver struck and killed a pedestrian. This resulted in Arizona banning Uber from testing in the state. In addition, multiple fatal accidents involving the driver assisting Tesla Autopilot system (SAE Level 2) have occurred. The recent accidents point out the difficulties in having human drivers as back"The speed at which up. In a Level 2 vehicle, the driver is required to stay engaged continuously, automated vehicle (AV) but the danger of distraction is ever present - especially when the system technology has sparked has performed well previously in similar conditions. Even with a much more the interest of the world capable Level 4 test vehicle, the safety driver must remain alert at all times media and consumers during testing. These accidents are currently under investigation by NHTSA continues unabated." and/or the NTSB and are shaping the perception of AV technology by the public as well as legislators and regulators.
6 │ OESA News - 2018 Second Quarter
CTO UPDATE BEV AND CAFE - OEMs have announced over $90B in investments worldwide for Battery Electric Vehicles (BEVs). Battery costs continue to decrease, but recent spikes in raw material prices for both lithium and cobalt threaten that trend. At current battery prices, BEV sales are driven primarily by government mandates – especially California’s Zero Emission Vehicle (ZEV) mandate in the U.S. Another factor driving OEMs to produce BEVs is that they are each counted twice under current Corporate Average Fuel Economy (CAFE) rules when calculating an OEM’s fleet average fuel economy. Thus, each BEV sale can help an OEM meet the California and follow-on states ZEV mandate as well as dramatically improving their CAFE calculations. BEVs, however, currently make up less than one percent of vehicle sales in the U.S. and it will be interesting to see if the announced investments pay off and result in increased consumer demand or will they continue to remain regulation “compliance vehicles.” The blue line on the accompanying chart below from IHS Markit forecasts slow, steady growth for BEVs rather than a rapid technology S-curve style adoption rate. Fuel economy regulations in general are in flux in the U.S. as the government considers modifying the proposed MY22 to MY25 NHTSA CAFE and EPA Green House Gas (GHG) standards. A series of proposals regarding this change is expected very soon which will be followed by a public comment period. ADAS - Advanced Driver Assistance Systems (ADAS) are becoming much more prevalent on North American vehicles and are clearly becoming a differentiator among OEMs. The percentage of new vehicles equipped with Automatic Emergency Braking (AEB) is rising dramatically as we move closer to the commitment dates established in the Memorandum of Understanding negotiated by NHTSA, the Insurance Institute for Highway Safety (IIHS), and 20 OEMs to put this safety technology on all light vehicles sold in the U.S. We are also seeing a dramatic increase in the number of heavy truck fleets equipping their new vehicles with fully integrated ADAS systems. It continues to be an exciting time to be a vehicle supplier. While there is significant uncertainty in a number of areas, the pace of technology change has never been greater. Suppliers that take advantage of the resulting increase in technology spending will continue to see robust growth.
Chart and Data from IHS Markit
OESA News - 2018 Second Quarter
│7
GUEST COLUMN
8 │ OESA News - 2018 Second Quarter
GUEST COLUMN
OESA News - 2018 Second Quarter
│9
GUEST COLUMN
10 │ OESA News - 2018 Second Quarter
OESA MEMBERSHIP
WELCOME NEW MEMBERS Agrati 28588 Northwestern Hwy Southfield, MI 48304 www.agrati.com/de/contacts.asp (734) 367-7079 Member Representative: Michael Delfin - Vice President, Sales and Marketing Alternate Representative: Jason Wojnicki - Team Leader Respect, Proactivity, Innovation, Accountability, Communication, Teamwork and Continuous Learning. These are shared values of Agrati Group, worldwide leader in fasteners solutions with 12 production units, 5 Logistic Hub with a surface area of 300.000 sqm, a capacity of 160.000 tons per year, 8 billion pieces and over 1,000 machines dedicated to the production of advanced fastening systems. Agrati’s natural trend to excellence, especially concerning quality and environment, and the prompt wish to fully satisfy the growing market demand, have led, over the years, to be awarded, always first in its field, with many third parties certifications plus testimonials and recognitions received from highly prestigious customers. Find the right solutions in our technical excellence.
Bmax USA, LLC 777 Enterprise Dr., Suite 100 Pontiac, MI 48341 (248) 462-7828 www.bmax.com Member Representative: Kevin Kennedy - CEO Alternate Representative: Sandy Sabbagh - Director, HR Bmax is a world-pioneer in pulse power systems and its application such as Magnetic Pulse Welding (MPW) and Magnetic Pulse Forming (MPF). Bmax was established in 2011 and is headquartered in France. Bmax is promoting product development mainly in Europe and North America in cooperation with automobile manufacturers and other companies. Especially in Europe, there is a higher request for using aluminum alloys for car production so MPW and MPF can give a good solution for Al forming and welding. There are two main base technologies in Bmax. MPW and MPF are a high-speed metal processing technology. I-Pulse (Bmax Group Company) provide unique technologies with professional engineering and simulation support for a wide range of applications in the mining and automobile industries.
OESA News - 2018 Second Quarter
│ 11
OESA MEMBERSHIP
WELCOME NEW MEMBERS Chassis Brakes International USA 27260 Haggerty Rd. Farmington Hills, MI 48331 (248) 957-9713 www.chassisbrakes.com Member Representative: Dennis Berry - President and CEO Alternate Representative: Kelly Zizelman - Executive Assistant / Translator Chassis Brakes International is one of the world’s largest manufacturers of automotive braking solutions. Its products - disk brakes, drum brakes, electro-mechanical parking brakes and rotors - are dedicated to passenger cars and light commercial vehicles. Chassis Brakes International has a global footprint with operations in Europe, Asia, South Africa, North and South America. The company employs 5,200 people in 15 countries at 15 manufacturing sites and 6 engineering centers or sales offices.
Creative Extruded Products, LLC 1414 Commerce Park Dr. Tipp City, OH 45371-2845 (800) 273-1535 www.creativeextruded.com Member Representative: Timothy Mach - President and CEO Alternate Representative: Brad Gross - Vice President, Sales and Marketing Creative Extruded Products, Inc. is a custom plastic and rubber profile extrusion company with a diverse production capability. Creative works with their customers from prototype, through product development to production. Founded in 1979, Creative has over 30 years of experience in the custom profile extrusion and assembly business. Creative can make simple to complex plastic and rubber profile extrusions and complete assemblies to solve their customers needs. Creative makes parts from simple profile extrusions to complete assemblies that require several complex profile extrusions that are combined and mated with other components. Explore their site to find out more or contact them to discuss your needs and learn how they can help solve your problems.
12 │ OESA News - 2018 Second Quarter
OESA MEMBERSHIP
KOTRA 101 W. Big Beaver Rd., Suite 545 Troy, MI 48084 (312)644-4323 www.kotra.or.kr Member Representative: Seung-hoon Shin - Director General Alternate Representative: Ohchul Kwon - Research Team Leader The Korea Trade-Investment Promotion Agency (KOTRA) is a Korean government agency with over 120 branch offices globally, including 10 offices in North America. KOTRA is established to help Korean exporters by providing the tools and environment to market overseas, while driving job creation and growing the Korean economy by attracting business and investment. KOTRA Detroit, based in Troy, Michigan, supports over 200 Korean automotive manufacturers annually through a variety of services such as trade delegations, support of industrial technology cooperation, automotive related seminars and matchmaking events. With an extensive network of Korean automotive academics and industry, KOTRA Detroit is also assisting SMEs in establishing a presence in the U.S., facilitating attraction of investment from corporate and strategic investors, and recruiting/retaining a talented workforce in Michigan in cooperation with other KOTRA branches in the U.S. By joining the OESA, we are hoping to create a platform for vetted Korean auto-parts suppliers to meet with OEM and OES so that they can identify opportunities to get immersed in the supply chain, as well as establish partnerships with their peer suppliers.
Treves, Inc. 39500 Orchard Hill Pl., Suite 110 Novi, MI 48375 (248) 778-7257 www.treves-group.com Member Representative: Andrew Garland - Sales Director Alternate Representative: Jaime Aguirre - Business Development Manager Founded in 1836, today Trèves is a recognized automotive supplier, specialzing in automotive interiors and acoustic environment. As an international group, employing 4,500 people, it has 23 factories across 17 countries.
OESA News - 2018 Second Quarter
│ 13
OESA MEMBERSHIP
WELCOME NEW MEMBERS Warn Automotive LLC 13270 SE Pheasant Ct. Milwaukie, OR 97222 (503) 659-8750 http://www.warnauto.com/ Member Representative: Craig Feusse - Director of Sales Engineering & Customer Service Alternate Representative: Brian Fleming - Key Account Manager From their inception, Warn Automotive, LLC been a company focused on increasing the capability of vehicles, both on road and off. While they're known for the rugged four-wheeldrive systems, these same systems also improve fuel economy and extend the range of vehicles in everyday driving. And it’s out of this efficiency that Warn Automotive was born. They are proud of the heritage and reputation they've earned through nearly 70 years of creating products that take vehicles further and bring them back again. But they're even more excited about the future. About using their expertise to maximize the mobility and efficiency of vehicles of today and tomorrow. And about helping their customers achieve that goal.
Zoppas Industries 5401 W Franklin Dr. Franklin, WI 53132 (414) 4237230 www.zoppas.com Member Representative: Fernando Montero - Sales Management Alternate Representative: David Watts - COO North America Zoppas Industries SpA is the parent company of an Industrial Group which operates in the heating components business segment. The Group produces heating components for small and major household appliances (which include cooking, white goods, room comfort heating and refrigeration) and industrial systems. The Group maintains 11 manufacturing facilities located in 8 countries. Its products have strong international appeal, with approximately 33% of revenue for the year 2000 derived from sales in Italy, 23.5% in Europe (excluding Italy), 43.5% in the rest of the world.
14 │ OESA News - 2018 Second Quarter
OESA EVENTS
OESA PROFESSIONAL DEVELOPMENT SERIES III | JUNE 5 The Original Equipment Suppliers Association (OESA) will host the final meeting of the “Professional Development Series” of meetings focused on the development of customer-facing associates of automotive suppliers. This meeting, to be held on June 5, 2018, at the MSU Management Education Center in Troy, Mich., will focus on Professional Presence, Business Protocol and a North American Market Outlook. For more information about the OESA Professional Development Series, contact Steve Horaney, vice president, membership & sales, OESA, at shoraney@oesa.org. Registration is available in the events section of http://www.oesa.org. For registration and program information, contact OESA at 248.952.6401 or info@oesa.org.
ELECTRONIC INNOVATIONS: DRIVING THE INDUSTRY | JUNE 6 Electronic and software components are increasingly important to the driving experience. These complexities in electronics, connectivity, mobility and autonomous driving are creating more challenges and opportunities for suppliers. Join OESA, Roland Berger, Butzel Long, and Flex and Danlaw, Inc. for an in-depth conversation on where the electronics market is now, where it is headed and how to navigate the intricacies of an ever-changing landscape. Hear firsthand from Brandon Boyle, partner, Roland Berger, on megatrends in the electronics domain and what shifts to expect in the future. Butzel Long attorney Jennifer Dukarski, (Detroit Office) will speak to new warranty and product liability issues in the electronics market as well as dealing with the ever-looming threat of obsolescence. Nicole Stevenson, vice president business strategy & marketing, Flex, and Tom Rzeznik, president & CEO, Danlaw, Inc., will share their insights on the limitations and opportunities of the electronics market from a supplier’s perspective and how best to deal with the present and future challenges. A Q&A session moderated by Brian Daugherty, chief technology officer, Motor & Equipment Manufacturers Association (MEMA), with all speakers will follow the formal presentations.
Executive Sponsor:
OESA members and automotive supplier industry guests may register in the events section at http://www.oesa.org. For registration assistance and program information, please contact OESA at 248.952.6401. OESA News - 2018 Second Quarter
│ 15
OESA EVENTS
CAPITAL MARKETS: MANAGING CAPITAL FOR COMPETITIVE ADVANTAGE | JUNE 7 As the automotive industry transitions toward mobility, suppliers are looking for innovative ways to fund new technologies. To address escalating capital and technology requirements, and help suppliers navigate opportunities and challenges in research and innovation, OESA invites members to attend the Capital Markets: Managing Capital for Competitive Advantage event on June 7, 2018, at the Somerset Inn, in Troy, MI. Attendees will walk away with real-world insights on how to mitigate risk and position for future success. Joe Langley, associate director, vehicle production forecasting, IHS Markit, will set the stage with an industry outlook on demand and production dynamics. Phil Gaglio, transaction services - managing director, corporate value consulting, and Vincent Mercader, director, corporate value consulting, Grant Thornton, will provide different perspectives on valuation. Tom Wendt, partner, Bain & Company, Inc., will explore the topic of capital strategies and share insights from Silicon Valley, including lessons learned from corporate venture capital and why corporates fail. Rick Hampson, president and head of commercial lending, Citizens Bank - Michigan, will showcase opportunities within middle market lending, while Matt Mueller, director, Western Reserve Partners, discusses current mergers and acquisition activity. Emma Blackley, director, global joint venture & partnering advisory, Lincoln International, will discuss partnering alternatives to achieve competitive advantage. Supplier experts, Tony Cannestra, director of corporate ventures, Denso International, and Harry Kemp, vice president & divisional counsel, seating division, Lear Corporation, will share case studies on their approaches to assessing needs-based solutions, leveraging venture capital and JVs and partnerships. The luncheon keynote speaker, Sherwin Prior, managing partner, Blue Victor Capital, LLC, and former managing director, GM Ventures, will provide actionable intelligence to help suppliers create strategies that yield tangible returns. Q&A sessions with all speakers will follow formal presentations. OESA members and industry guests may register in the events section at http://www.oesa.org. For registration assistance and program information, contact OESA at 248.952.6401.
For more information and to register for OESA events and council meetings, visit oesa.org, or call 248.952.6401.
16 │ OESA News - 2018 Second Quarter
OESA EVENTS
SOUTH CAROLINA REGIONAL SUPPLIER MEETING | JUNE 14 The Original Equipment Suppliers Association (OESA) and South Carolina Automotive Council (SCAC) invite suppliers to attend the OESA/SCAC South Carolina Regional Supplier Meeting on June 14, 2018. The event will be held at the prestigious Clemson University International Center for Automotive Research (CU-ICAR) in Greenville, S.C. Ann Wilson, senior vice president, government affairs, Motor & Equipment Manufacturers Association (MEMA), will review the hot topics out of Washington, D.C. David Clayton, executive director, Center for Manufacturing Innovation (CMI), will discuss workforce development. A panel of automotive industry experts including Tom Miller, general manager, emerging regulations and new technical research, Aisin Technical Center of America, and Bala Lakshman, managing director, strategy, KPMG, will share their insights during the technology panel session. Moderated by Brian Daugherty, chief technology officer, MEMA, the panel will answer questions and share the reality vs the hype behind the headlines on AV, EV and more. Michael Balke, president and CEO, Mercedes-Benz Vans, will discuss ways for suppliers to interface with Mercedes-Benz Vans and future plans. Meeting details and registration information are available at http://www.oesa.org. For registration and program information, contact OESA at 248.952.6401 or info@oesa.org. Presenting Sponsor: In Cooperation With:
Lunch Sponsors: Reception Sponsor:
OESA 2018 ALIXPARTNERS GLOBAL AUTOMOTIVE OUTLOOK EXECUTIVE BRIEFING | JUNE 18 OESA invites supplier members to attend the 2018 AlixPartners Global Automotive Outlook® Executive Breakfast Briefing with John Hoffecker, global vice chairman-operations, Mark Wakefield, global automotive & industrial practice co-lead, and Shiv Shivaraman, Americas automotive and industrial practice co-lead, AlixPartners LLP. The event will be held on June 18, 2018, at The Townsend Hotel, Birmingham, Mich. Based on AlixPartners’ in-depth analysis of the financials and operations of more than 150 global suppliers and 50 automakers, this executive breakfast briefing will provide the analysis of key trends likely to structurally impact the industry over the next ten years. This supplier-centric event also focuses on strategies for targeting investments in the most attractive opportunities and developing strong competitive positions in those markets. This meeting is intended for supplier CEOs, presidents, CFOs and strategic planners. Also, the review of OEM financials and strategies will benefit sales and marketing executives looking to gain insights into their customers’ commercial needs and how to mitigate risk. Hoffecker, Wakefield and Shivaraman will also participate in a question and answer session targeting issues that are top of participants’ minds. Supporting Sponsor: Only members attending the meeting in person will receive a copy of the AlixPartners’ benchmark data and analysis. OESA supplier members can register in the events section of http://www.oesa.org. For registration and program information, contact OESA at 248.952.6401 or info@oesa.org. OESA News - 2018 Second Quarter
│ 17
OESA EVENTS
CREATING AN ENGAGED CULTURE | JUNE 20 As companies are challenged with identifying and hiring qualified employees, they are also tasked with retaining their current workforce. Creating a culture that positively engages all employees is critical to a company’s future. Winning organizations have high-performance cultures that engage and inspire their employees – and they align all functions, not just human resources, to support a winning strategy. To help member companies create a winning culture of employee engagement, OESA has developed a collection of events on employee engagement. The first meeting, Creating an Engaged Culture, will highlight thought leadership from Boston Consulting Group. The meeting will be held on June 20, 2018, at the MSU Management Education Center, in Troy, Mich. It will focus on what it takes to create an engaged culture, and includes a workshop and tactical next steps. Future sessions will cover a range of topics including engaging specific types of employees and growing personal engagement. The sessions are intended for employees who are involved with executing strategy, creating policy, transferring knowledge and creating great teams. Future employee engagement events include: August 22, 2018 – Engaging Experienced Employees September 19, 2018 – Growing Your Own Engagement OESA members may register in the events section of http://www.oesa.org. For registration and program information, contact OESA at 248.952.6401 or info@oesa.org.
ADDRESSING CHALLENGES OF DOING BUSINESS IN MEXICO | JUNE 27 On June 27, 2018, OESA will host “Addressing Challenges of Doing Business in Mexico” at the MSU Management Education Center in Troy, Mich., and via webinar. Attendees will hear how to navigate current challenges for suppliers in Mexico, as well as lessons learned and insight on topics such as labor, trade, scenario planning and the current business landscape. Alberto Torrijos, automotive industry leader, and Juan Pizano, partner, Deloitte Mexico, will share an update on the current business landscape in Mexico including challenges, as well as potential solutions. Raul Cabada, director of shared services, Entrada Group, and David McQueen, management consultant – business development, The Offshore Group, will share insight to address the labor shortage in Mexico including: variations in local markets, recruiting strategies by region, successful retention strategies, and case studies of diverse labor approaches. Oscar Albin, executive presidente, Industria Nacional de Autopartes A.C (INA), and Ann Wilson, senior vice president, government affairs, Motor & Equipment Manufacturers Association (MEMA), will share an update on the status of the NAFTA renegotiations. Neal Ganguli, managing director, and Vijay Natarajan, senior manager, Deloitte Consulting, will discuss how suppliers can leverage their Mexican presence through scenario planning, even with uncertainty in the marketplace. Supporting Sponsors: A Q&A panel with all speakers will follow the formal presentations. OESA members and industry guests may register in the events section of http://www.oesa.org. For registration assistance and program information, contact OESA at 248.952.6401 or info@oesa.org. 18 │ OESA News - 2018 Second Quarter
SAVE THE DATES
Registration Now Open 2018 Annual Conference Transform. Innovate. Lead. November 7, 2018 | Suburban Collection Showplace Save the date, Wednesday, November 7th, 2018, for the 2018 OESA Annual Conference. It will be held at the Suburban Collection Showplace in Novi, Mich. The event celebrates OESA's 20-year anniversary and will inspire the automotive supplier industry to transform its culture and innovate its products and services to lead in the new mobility industry. Sponsorship opportunities and exhibit booths are available. Contact Drew Rhodes at 248.430.5961 or drhodes@oesa.org.
Town Hall Meetings July 17
Toyota Town Hall Saline, MI
Aug 20
FCA Town Hall Novi, MI
Sept 13
Volkswagen Town Hall Novi, MI
Sept 18
Honda Town Hall Livonia, MI
Oct 2
Nissan Town Hall Livonia, MI
Nov 30
Ford Town Hall Dearborn, MI
OESA News - 2018 Second Quarter
│ 19
AASA EVENT
AASA OES SUMMIT | AUG 23 The Automotive Aftermarket Suppliers Association (AASA) is gathering a stellar line-up of thought leaders and subject-matter experts for its new event, the AASA OES Special Summit, set for Thursday, Aug. 23, in Dearborn, Mich. The agenda spotlights automakers, original equipment (OE) dealers and aftermarket suppliers that are developing strategies to grow OE service (OES) business. Representatives from each of these stakeholder groups will explain how they have grown their market share through dealer parts and service departments as well as aftermarket outlets beyond the dealer. Presentations also will address OES market outlook, the OES channel’s unique requirements and emerging OE dealer strategies. Confirmed speakers and presentations to date include: “Unique Needs, Current Challenges and Future Requirements of OES Channel” • Moderator - David Williams, Director, OES Sales, Marketing and Strategic planning, DENSO Products and Services Americas, moderator • Jon Palazzo, Vice President and General Manager, mechanical, OE Connection • Kaleb Silver, Senior Product Manager, Hunter Engineering “Servicing Tomorrow’s Technology-Enabled Vehicles” • Jeff Flood, Manager, Diagnostic Strategy and Methods, General Motors “Automaker OES Channel Strategies” • John Hanighen, Global Aftermarket Director, Ford Motor Co. “Emerging OE Dealer Parts and Service Growth Strategies” • Scott Arnold, Executive Vice President Customer Care and Brand Extensions, AutoNation The Summit also will include commentary by AASA President and COO Bill Long, and Paul McCarthy, AASA executive vice president The AASA OES Special Summit is set for 9:30 a.m. - 3 p.m. on Aug. 23 at the Ford Conference & Event Center, Dearborn, Mich. Discounted tickets to the Henry Ford Museum also will be available to attendees. This inaugural AASA event also offers unique promotional opportunities; contact Ben Brucato at bbrucato@aasa.mema.org for details.
20 │ OESA News - 2018 Second Quarter
COUNCIL FEATURE OESA Board of Directors Executive Committee Chairman of the Board Mike Mansuetti President Robert Bosch LLC Immediate Past Chair Samir Salman CEO NA Region Continental Automotive Systems, Inc. Vice Chair Françoise Colpron Group President Valeo North America Vice Chair Ramzi Hermiz President and CEO Shiloh Industries, Inc. Officer Julie A. Fream President and CEO Original Equipment Suppliers Association Officer Steve Handschuh President and CEO Motor & Equipment Manufacturers Association
Directors Oscar R. Albin Executive President INA, Industria Nacional de Autopartes A.C. Paul Barnett President Principal Manufacturing James Bradbury President Grand Rapids Controls Company LLC David C. Dauch Chairman and CEO American Axle & Manufacturing, Inc. (AAM) Jacqui Dedo Co-Founder Aware Mobility, LLC Paul Doyle CEO Coastal Automotive
Young Leadership Council (YLC7) 2018-2020 Testimonials, About the Program and Join Form OESA is seeking nominations for the seventh Young Leadership Council (YLC7). This council is open to all member companies and provides a forum to help develop and retain future leaders. Participants come from all functional area including finance, sales, marketing, manufacturing, human resources, purchasing, logistics, communications or engineering. During the 2-year program, council “The access to industry leaders members hear from subject matter and speakers providing insight experts on leadership, personal into leadership and critical issues development and industry topics was very eye opening and not and trends. Designed as a peer-toavailable anywhere else.” peer environment, attendees share - YLC Alum best practices and experiences. Graduates leave the program better prepared for increased responsibility and equipped for the next step in their career with the member company. Executives can nominate candidates for the Young Leadership Council by completing the nomination form located online at https://form.jotform.com/bmccann/YLC. “The lessons learned during the YLC stay with The first meeting of the YLC7 will take place me to this day and I am on October 11, 2018, at the OESA Confersignificantly grateful for ence Center in Southfield. Early nominations having the opportunity to are encouraged. serve on the Council.” - YLC Alum For more information on the OESA Young Leadership Council, contact Keiyania Mann at 248.430.5952 or kmann@oesa.org. “Having successful leaders explain their philosophies will help the YLC members become better leaders themselves, thus improving the overall industry, one YLC class at a time.” - YLC Alum “OESA Young Leadership Council has provided the unique opportunity to be exposed to the automotive leaders of today while also engaging with the automotive leaders of tomorrow. Through various program seminars and available industry events sponsored by the program, it is easy to get a sense for what it will take for the next generation of senior leadership to meet future industry trends and challenges. “ - YLC Alum
“I fully endorse the OESA YLC activity as a learning opportunity that should not be missed by anyone that wants to gain insight into relevant topics that leaders are facing today and access to their industry peers and leaders.” - YLC Alum
(Continued on page 21)
For more information and to register for OESA events and council meetings, visit oesa.org, or call 248.952.6401. OESA News - 2018 Second Quarter
│ 21
CALENDAR OF EVENTS
2018 UPCOMING EVENTS June
5
June
6
OESA Professional Development Series III MSU Management Education Center Troy, MI Electronic Innovations: Driving the Industry MSU Management Education Center & Webinar Troy, MI
June
Capital Markets: Managing Capital Competitive Advantage Somerset Inn Troy, MI
June
OESA/SCAC South Carolina Regional Supplier Meeting
7
14
Clemson University Interational Center for Automotive Research
June June
OESA 2018 AlixPartners Global Automotive Outlook Executive Briefing The Townend Hotel Birmingham, MI
18
Greenville, SC
June
Creating an Engaged Culture MSU Management Education Center Troy, MI
June
Addressing Challenges of Doing Business in Mexico MSU Management Education Center & Webinar Troy, MI
20
27
UPCOMING OESA COUNCIL MEETINGS* June
14
Enterprise Leadership Council OESA Conference Center Southfield, MI
June
Chief Financial Officers Council The Townend Hotel Birmingham, MI
June
IT Leadership Council OESA Conference Center Southfield, MI
June
Sales Executive Council Laurel Manor Livonia, MI
June
Tooling Council OESA Conference Center Southfield, MI
June
Warranty Management Council Laurel Manor Livonia, MI
18 19 21 27 28
*Open to peer group council members and invited guests.
22 │ OESA News - 2018 Second Quarter
OESA Board of Directors
(Continued from page 20)
John Dunn President and CEO, The Americas Plastic Omnium Auto Inergy Division Douglas J. Grimm Immediate Past Chairman of the Board, MEMA Michael Haughey President North American Stamping Group, LLC Ken Hopkins President and CEO Neapco Holdings, LLC Kenichiro "Ken" Ito Executive Director DENSO Corporation Don Manvel Chairman and CEO AVL Americas Chris Obey President, Automotive Flex Lon Offenbacher President and CEO Inteva Products Michael Robinet Managing Director Automotive Advisory Services IHS Markit Dan Sceli President and CEO Peterson American Corporation Wes Smith President and CEO E & E Manufacturing Co., Inc. Armando Tamez CEO Nemak Jim Teets President and CEO ADAC Automotive James Verrier President and CEO BorgWarner Inc.
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 members of the OESA Communications Team. April Buford Senior Director, Communications
Jeff Laskowski Senior Manager, Communications
Abby Napier Communications Specialist
248.430.5964 abuford@oesa.org
248.430.5951 jlaskowski@oesa.org
248.430-5957 anapier@oesa.org
OESA News - 2018 Second Quarter
│ 23