NEWS
Original Equipment Suppliers Association
2018 Third Quarter │ Edition 2
2018 OESA Annual Conference | Nov. 7 | Register Today! IN THIS ISSUE... 3 6 8 10
The Suppliers' Voice Supplier Pulse Legislative Update CTO Update
12 Guest Column 15 Upcoming OESA Events 18 Meet New Members
21 A Council Member's Experience 22 Council Feature: Young Leaders
This edition is sponsored by: OESA News - 2018 Third Quarter
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Agile + Responsive + Road-Tested The Automotive Industry Group at Warner Norcross + Judd
We get the automotive industry and our automotive attorneys represent only suppliers. That’s why multinational Fortune 500 companies to familyowned suppliers look to Warner for counsel. Through strategic guidance, we maneuver relationships between parts suppliers and vehicle manufacturers, automotive regulators and the emerging autonomous vehicle market. Visit wnj.com to learn more about our expertise in the automotive sector.
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Voice
The Suppliers’
Julie A. Fream
President and CEO
This year, the Original Equipment Suppliers Association (OESA) celebrates 20 years in the automotive supplier industry. While the association has grown and changed since its founding in 1998 by industry veteran Neil De Koker, the mission remains the same – championing the business interests of automotive suppliers. I invite you to join us on November 7, 2018, as we bring together more than 700 industry executives at the 2018 OESA Annual Conference – Transform Innovate Lead. We will celebrate OESA's 20th anniversary and discuss the industry's opportunities and challenges. The conference will be held at the Suburban Collection Showplace in Novi, Mich., and provide valuable and actionable insight on the future of the industry. Keynote speakers include:
Sam Walker
the Wall Street Journal's Leadership Columnist and author of "The Captain Class"
Hinrich J. Woebcken
President and CEO, Volkswagen Group of America; CEO, Volkswagen North American Region
Shinichi Yasui
Executive Vice President, Toyota Motor North America Research and Development
See agenda highlights on page 5. We hope you will join us for this insightful and thought-provoking day. For additional information and to register for the conference, visit oesa.org or call 248.952-6401. As always, please feel free to contact me at 248.430.5963 or jfream@oesa.org.
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2018 OESA ANNUAL CONFERENCE SPONSORS
Thank you to our 2018 Annual Conference Sponsors. Platinum Sponsors
Board of Directors
Premier Sponsors
Principal Sponsors
Presenting Sponsors
Supporting Sponsors
Conference Exhibitors
Sponsorship opportunities are still available. Contact Drew Rhodes at drhodes@oesa.org or 248.430-5961. 4 │ OESA News - 2017 Fourth Quarter
2018 OESA ANNUAL CONFERENCE
TRANSFORM INNOVATE LEAD
OESA Annual Conference | November 7, 2018 | Novi, MI
Agenda Highlights* Driving Mobility: The Supplier Leadership Perspective Mary Buchzeiger, CEO, Lucerne International Inc. Daniel Sandberg, President and CEO, Brembo North America, Inc. Ray Scott, President and CEO, Lear Corporation Moderator: Julie A. Fream, President and CEO, OESA Innovation: The Impact of New Technology Phil Koopman, Associate Professor, Carnegie Mellon University Jada M. Smith, Vice President, Advanced Engineering & External Relations, Aptiv Moderator: John McElroy, Host, Autoline Leading through Change Deborah Kullman, Vice President, Business Development and Marketing - Vehicle Group, Eaton Moderators: Russell Hensley, Partner, McKinsey & Company, Inc. and Hans-Werner Kaas, Senior Partner, McKinsey & Company, Inc. Navigating Peaks and Valleys: The Industry Outlook Panel Michael Robinet, Managing Director, Automotive, IHS Markit Emily Kolinski Morris, Chief Economist, Ford Motor Company Moderator: Mike Jackson, Executive Director, Strategy and Research, OESA Transforming OEM/Supplier Relationships Lisa Drake, Vice President, Global Powertrain Purchasing and Global Purchasing Operations, Ford Motor Company Tom Lake, Vice President, North American Purchasing, Honda of America Mfg., Inc. Scott Thiele, Chief Purchasing Officer, FCA Moderator: Dustin P. Walsh, Senior Reporter, Crain's Detroit Business Sam Walker, the Wall Street Journal’s Leadership Columnist and author of “The Captain Class” Ann Wilson, Senior Vice President, Motor & Equipment Suppliers Association (MEMA) Hinrich J. Woebcken, President and CEO, Volkswagen Group of America; CEO, Volkswagen North American Region Shinichi Yasui, Executive Vice President, Toyota Motor North America Research and Development
*Not an all-inclusive agenda; Additional presenters are being added. For additional information and to register for the conference, visit oesa.org or call 248.952-6401. OESA News - 2017 Fourth Quarter
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SUPPLIER PULSE
OESA Supplier Barometer Shows Growing Concern Over Tariffs and Trade Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org
Despite a strong sales and production environment, a pessimistic supplier outlook prevails due to trade policy uncertainty across the automotive supply base in 3Q 2018. The OESA Automotive Supplier Barometer, a quarterly survey of executives at North American automotive suppliers on their 12-month outlook, posted a negative reading of 43 for the third quarter of 2018, seven points below a neutral level of 50.
"Policy uncertainty serves to constrain additional capacity investment and accelerate volatility through the supply chain, adding risk down the tiers."
Supplier Barometer Index (SBI): Even with strong economic fundamentals (i.e. low unemployment, high consumer confidence and robust vehicle sales), the SBI in 3Q 2018 reflects negative repercussions from the current administration’s current trade policy agenda. The latest OESA Supplier Barometer Index (SBI) reading dropped ten points from the 2Q 2018 result, in sharp contrast to the positive levels of 57 and 53 in the first and second quarters of 2018, respectively. Concerns also remain over supply chain risks, commodity prices, the impact of Section 232 and Section 301 tariffs, as well as the fate of stalled NAFTA negotiations in the context of midterm congressional elections. Each concern adds uncertainty to the planning environment, causing automakers and suppliers to reassess, revise and potentially postpone incremental investments until greater clarity can be determined. Supplier executive responses reflect a universal increase in pessimism over prior quarter survey results. Some 38% of responses from smaller, more regionally-focused suppliers, reflect increasing pessimism, twice the rate compared to the prior quarter. Even more dramatic, 75% of executive responses from larger suppliers, with revenue between $500M and $1 billion, show a sharp increase in pessimism, up from 38% in 2Q 2018. The themes of Globalization and Supply Chain fueled responses for the third quarter 2018 Supplier Barometer survey. Globalization: Supplier export activities provide a meaningful contribution to overall market strength. Survey responses highlight a median of 10% of US supplier production exported in 2018. Median allocation of US exports by country rank Mexico the top destination (50%), followed by Canada (30%), while Europe and Asia 6 │ OESA News - 2018 Third Quarter
SUPPLIER PULSE each reflect an equal share (20%). Highlighting the nature of sophisticated supply chains, the median value of material costs for US output purchased outside the U.S. stands at 45%, up materially from a median response of 25% in 2017. The median values for highest material/component spend for US output by region include Asia (35%), Mexico (25%) and Middle East/Africa (23%). These points highlight the sophisticated nature of highly integrated supply chains that are vital for regional competitiveness and the "Now, more than ever, urgent need for clarity on NAFTA.
suppliers should seek to use the increasing Supply Chain: Survey results show that 47% of respondents anticipate market turbulence to their North American supplier capacity to face rationalization pressures over advantage by looking the next year. Policy uncertainty serves to constrain additional capacity beyond the near-term to investment and accelerate volatility through the supply chain, adding risk down the tiers. In the context of supply risk, a concerning trend is emerging realize their strategy for as the number of financial watchlist suppliers has increased considerably. success."
Further supply concerns include persistent timing pressures due to late design changes or delayed part validation. Expect these factors to be compounded as steel shortages due to tariffs drive additional supplier changes and require additional late engineering and validation work. Vehicle output remains robust, as OESA’s Affiliate Forecast Matrix reflects North American production of 17.3 million units in 2018. The automotive industry is poised to achieve another milestone. For the first time ever, North American vehicle production is forecast to surpass 17.0 million units for the fifth consecutive year. Despite such a remarkable achievement, a wide range of market pressures including policy changes, cost, capacity, talent and supply chain--are turning leadership attention away from the crucial task of strategic planning. Now, more than ever, suppliers should seek to use the increasing market turbulence to their advantage by looking beyond the near-term to realize their strategy for success. OESA’s Automotive Supplier Barometer survey results and the Sentiment Index chart are available on the OESA website at: https://www.oesa.org/resource/oesa-automotive-barometer-studies. 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.
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LEGISLATIVE UPDATE
Trade, Tariffs and the Impact on the Supplier Industry The Trump administration has either imposed or is investigating a series of trade actions on products and parts from around the world that could directly impact the automotive industry. Currently, there are four different types of tariffs or trade actions that every supplier should understand. 1.
Renegotiation of the North American Free Trade Agreement (NAFTA)
For the past 25 years, NAFTA has played a critical role in the development and strengthening of various North American supply chains and has been effective for the overall U.S. vehicle industry. As one of its first actions after the inauguration, the administration triggered a renegotiation of the agreement. President Trump could withdraw or radically change NAFTA during the current renegotiation process. Renegotiation efforts have recently stalled, with a call from the industry to resume talks. OESA’s position: Free and fair trade is imperative for a strong domestic supplier industry, and many of our members rely upon the free and open trade relationship with Canada and Mexico maintained by NAFTA. OESA supports the initiative to modernize NAFTA and increase jobs in the United States; and care must be taken to balance re-shoring of U.S. jobs with the unintended risks to jobs and the supply base. The final NAFTA product must continue to provide for a vibrant North American supply chain, which supports U.S. jobs and competitiveness. What every supplier should understand: Open markets and integrated supply chains provide the framework for economic growth and jobs in our industry. NAFTA has served the industry, the American worker, and the U.S. economy well, and through our MEMA advocacy team in Washington, D.C., OESA will continue to voice this position as this situation develops. 2.
Section 232 Steel and Aluminum Tariffs
Section 232 of the Trade Expansion Act of 1962 allows the President to impose tariffs on imports that the Department of Commerce deems a threat to the United States’ national security. In the Spring of 2017, President Trump called for 232 investigations into steel and aluminum imports into the United States from countries around the world, citing national security. After the investigation, President Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports. OESA’s position: In comments to the U.S. Department of Commerce, MEMA warned that policy changes that prevent or encumber motor vehicle parts suppliers’ ability to obtain certain types of steel and aluminum could jeopardize production of critical products made for the U.S. defense industry and could destabilize a growing U.S. manufacturing job base. In February 2018, Commerce issued a report from its investigations recommending that high tariffs be imposed on steel and aluminum entering the United States from a broad spectrum of countries. On behalf of OESA members, MEMA continues to reiterate that steep, across-the-board tariffs on aluminum and steel coming into the United States is dangerous and could put the very jobs and competitiveness he hopes to help in harm’s way. After a short deferment on tariffs on steel from certain trade partners, all countries are now subject to the tariffs, except for Argentina, Australia Brazil and South Korea, which have quotas in place. Commerce will accept product exclusions requests from companies on a case-by-case basis.
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LEGISLATIVE UPDATE What every supplier should understand: If a supplier imports steel or aluminum, it is already paying these tariffs. The Section 232 measures are based on the country of origin and not the country of export. There is no sunset for the tariffs. The administration can cancel the tariffs at any time by proclamation. For details on the exclusion process and other specific, visit mema.org. 3.
Section 301 Tariffs on Chinese Imports
The administration has imposed 25 percent tariffs on $34 billion worth of Chinese imports, as a remedy to intellectual property (IP) theft and technology transfer. In addition, it has announced two more potential rounds of tariffs, 25 percent on an additional list worth $16 billion and 10 percent on a list worth $200 billion. OESA’s position: For decades, MEMA has been at the forefront of the battle against intellection property rights abuses in China. Motor vehicle parts are particularly vulnerable to counterfeiting and IP theft activities. Strong intellectual property rights (IPR) protections are needed to encourage companies to support important research and development investment and to foster innovation as IPR owners are provided certainty that their inventions and technological advancements will be safe from infringers. Tariffs are taxes that hurt U.S. companies, put jobs at risk, and negatively impact consumers. MEMA, on behalf of OESA members, supports stronger bi-lateral engagement where China and the U.S. work together to protect the valuable IP of our members or leveraging the powerful relationships the U.S. has with other trading partners to pressure China to enforce their own IP laws and comply with international IP laws and regulations. What every supplier should understand: 25 percent tariffs on $34 billion worth of imports are already in effect, along with Chinese retaliatory tariffs. USTR has announced an exclusions process for the current tariffs, requests are due by October 9, 2018. These tariffs will not expire, however, like the Section 232 tariffs, they can be canceled by proclamation by the Trump administration. 4.
Section 232 Tariffs on Automobiles and Automotive Parts
The administration initiated an additional Section 232 investigation in May 2018 of autos and auto parts. These tariffs, if they take effect, could have the biggest impact on the motor vehicle parts supplier industry. OESA’s position: MEMA has expressed disappointment for the imposition of 232 tariffs on autos and auto parts, as these tariffs would adversely impact the success and growth of American manufacturing. They could place manufacturers at a competitive disadvantage to their global counterparts and erode U.S. jobs and growth. Such actions could weaken our nation’s economy by harming U.S. manufacturers of vehicles and vehicle parts and would deter U.S. investments in new innovative technologies. In addition, tariffs on imported parts will lead to increased repair costs, forcing U.S. consumers to potentially forgo necessary repairs and routine maintenance. Foregoing maintenance undermines the fundamental operating safety and efficiency of consumers’ vehicles. What every suppler should understand: If these tariffs are implemented, they will certainly impact the vast majority of the automotive industry. Stay up to date by visiting MEMA’s Trade Resources Page. The four trade actions outlined above, and the retaliatory tariffs imposed by other countries, impact almost every one of the 450+ OESA members in one way or another. The industry has seen these actions as important and impactful enough to spur a hi-level focus on this, and MEMA’s work in Washington, D.C. has been brisk. Information changes almost daily. Visit www.mema.org/trade to learn more, stay up to date, get involved, and understand how these actions impact the automotive industry. OESA News - 2018 Third Quarter
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CTO UPDATE
Maintaining Perspective in a Time of Technological Uncertainty Brian Daugherty Chief Technology Officer - MEMA 248.430.5966 │ bdaugherty@mema.org
We live in a fascinating era of technological progress. In addition to the advances in consumer electronics, we are seeing similar rapid progress in automotive technology. Not a day goes by without dramatic predictions of fully autonomous, electric vehicles zipping us around while seamlessly communicating with each other and the roadway infrastructure. We also have pundits forecasting that we will soon be travelling in pilot-less flying pods - which in many ways is an easier problem to solve than autonomous "It’s important to remember ground-based navigation. However, it’s important to remember that most that most commentators in commentators in the popular press have no technical background, but the popular press have no they do enjoy the allure and hype of advanced vehicle technology. Given technical background, but they the media attention, combined with widely-varying growth forecasts for do enjoy the allure and hype of hybrids, battery electric vehicles (BEVs) and automation, how do we advanced vehicle technology." develop and maintain a realistic technology perspective? It helps to examine the long history of automotive technology launches. Typically, most new systems have been deployed slowly and on low volume premium vehicles. Once the bugs are worked out and the risks are better understood, the feature is rolled out across the fleet over several years. While some now say this process is too conservative and needs to change, in general, it has been a very successful risk-mitigation strategy. Any issues are relatively low volume in nature and OEMs avoid large, expensive recalls of hi-tech features that are difficult to repair or replace. The success of this launch model needs to be considered as the industry develops future business plans and technology roadmaps. One of the real dangers facing OEMs and suppliers is investing very large amounts of money on technologies that end up not paying off for decades – either because they don’t live up to the public’s performance and safety expectations or they end up being too expensive to deploy in large numbers. This has always been true, but never more so than in the current environment. Let’s look at automated vehicle technology in more detail, as an example. As automated vehicle (AV) technology begins to move from demonstration and test vehicles to deployed systems, the new buzzwords will be reliability and redundancy. To achieve the necessary reliability when you remove the driver as a backup system, driverless AVs will require significant redundancy. And not just for navigational sensors and computers, but also redundancy within the steering, throttle, and braking systems; power sources and distribution systems; and data networks. No one wants to have a failure occur (Ex: a squirrel eats partially through a critical cable) with no detection capability or redundancy present that can provide a failsafe recovery mode. Of course, the downside of redundancy is cost and weight.
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"As automated vehicle (AV) technology begins to move from demonstration and test vehicles to deployed systems, the new buzzwords will be reliability and redundancy."
CTO UPDATE How much redundancy does a driverless AV system require? Today, we often forget that the human driver is a very capable and low-cost redundancy for critical systems such as steering, braking, and throttle control. In current production vehicles for example, an electric power steering (EPS) system only needs to detect that a failure has occurred, and the electronic control unit shuts down the system. The driver then takes over as the backup and steers the vehicle manually. The system does not need to determine what the failure is or recover in any manner – it just shuts off. However, if no driver is present as a backup, things quickly get much more complex and therefore more expensive. Many additional sensors will be required to monitor the health of the primary, secondary, and potentially tertiary steering actuators and electronic motor controllers. If a failure occurs, the steering needs to be handled by a functioning "We often forget that the human driver is a very capable and backup system while the vehicle safely exits the roadway. And low-cost redundancy for critical like aircraft, driverless AVs will need to develop and comply with standards for physical separation of redundant power lines and systems such as steering, data buses. Current automated test vehicles – while technologically braking, and throttle control." impressive - typically do not have any system redundancy beyond their external navigation sensors. Another aspect to consider on the day when fully autonomous technology does come to fruition, is who will want to buy or ride in the second best or worse, the third best autonomous vehicle? We may see a situation similar to successful internet sites in which the market becomes winner-take-all. Most consumers don’t use the second-best search engine, auction site, or online marketplace because the top companies offer more information, buyers, or purchase options. The winning sites receive the most revenue and then have the ability to reinvest in additional employees and technology improvements to cement their dominant market position.
"Companies that carefully consider how technology development investments will fare over a wide range of adoption rates and timeframes will do well."
One of our goals at MEMA and OESA is to expose our members to many diverse points of view to help with technology strategy development. Companies that carefully consider how technology development investments will fare over a wide range of adoption rates and timeframes will do well. Developing products that can work across multiple vehicle types such as both hybrids and BEVs or SAE Level 2 AVs along with driverless SAE Level 4 vehicles will make companies less susceptible to technology risk.
Maintaining a realistic perspective is going to be increasingly important over the next several years. As our industry continues to rapidly deploy technology, it is worthwhile to keep in mind the automotive industry’s successful history of launching advanced automotive features and avoid letting media hype or optimistic forecasts overly influence automotive business plans. If you are interested in a quick status update on current automotive technologies, please read the article in last month’s OESA newsletter.
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GUEST COLUMN
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GUEST COLUMN
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GUEST COLUMN
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OESA EVENTS
UPCOMING EVENTS OESA Automotive Commodities Event | Aug 9 OESA is hosting an Automotive Commodities Event on Aug. 9, 2018, at the MSU Management Education Center in Troy, Mich. The program is structured to provide suppliers with a broad materials market outlook, an understanding of evolving material technologies and material cost management strategies. The conference features industry insiders including Talha Alvie, commodity derivatives sales, Bank of America Merrill Lynch. Alvie will provide an overview and analysis of the current commodity pricing environment, the latest forecast and how changes could impact automotive suppliers. Experts from Ducker Worldwide will discuss the changing landscape of materials including light weighting technologies and other emerging materials. John Trentacosta, Vanessa Miller and Nicholas Ellis, from Foley & Lardner LLP, will share legal strategies for operating in volatile times with a focus on evolving regulations and market conditions. Attendees will have the opportunity to ask questions of and network with the presenters. OESA members and industry guests may register in the events section of http://www.oesa.org. For registration assistance, contact OESA at 248.952.6401 or info@oesa.org.
Industry Disruptors: RJ Scaringe, Rivian Automotive | Aug 14 The automotive industry is in a state of disruption. Electrification, autonomous driving, connectivity, shared mobility, government policy changes and new entrants continue to reshape the automotive industry at a rapid pace. The synergy of automotive manufacturing and technological innovation presents the auto industry with many opportunities and challenges. To help members stay abreast of the industry’s disruptive forces, OESA is pleased to launch a new event series: Industry Disruptors. Meetings will feature thought leaders, new OEMs and suppliers, and government officials discussing the impact of the industry’s disruptions. RJ Scaringe, Founder and CEO, Rivian Automotive will keynote the first executive briefing on August 14, 2018 at The Inn at St. John’s in Plymouth, Mich. He will be joined by Tony Ishibeshi, Director of Strategy, Steve Gawronski, Director of Vehicle Purchasing, and Mark Vinnels, Executive Director of Vehicle Purchasing, Rivian, for one-on-one networking opportunities According to industry forecasters, hybrid and full electric vehicles are expected to command up to 33 percent of all global auto sales by 2027 — with hybrid vehicles accounting for most of that percentage. Scaringe will discuss his vision for the future of electric vehicles and bring a team of Rivian executives to have one-on-one meetings before and after meeting. OESA members and 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
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OESA EVENTS
FCA Town Hall Meeting | Aug 20 OESA is pleased to host the 12th Annual FCA North America Town Hall meeting for OESA members and FCA suppliers on Aug. 20, 2018, at the Suburban Collection Showplace in Novi, MI. Hear directly from key FCA decision makers in supply chain management, purchasing and supplier quality, and engineering and manufacturing. Scott Thiele, chief purchasing officer, FCA – global, will provide a purchasing and supplier quality update, which includes key purchasing and supplier relations initiatives and FCA’s 2018 top priorities FCA is committed to making many of its key representatives available during the networking sessions before and after the program. Last year, more than 100 FCA representatives attended. This year, we expect the same commitment. FCA executives will be available for one-on-one supplier networking before the formal meeting. For registration assistance and program information, contact OESA at 248.952.6401. Exclusive Sponsor:
Supporting Sponsors:
Engaging Experienced Employees | Aug 22 As companies struggle to identify and hire qualified employees while retaining their current workforce, creating a culture that positively engages 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 to support a winning strategy. Developed in partnership with Kerr-Russell, Engaging Experienced Employees will be held on August 22, 2018, at the MSU Management Education Center, in Troy, Mich., and via webinar. This session focuses on how to engage employees who may be in the later phase of their careers. Key takeaways include insight on why the stage of an employee’s career is important, what is changing in the workplace, what is needed now and why, legal dos and don’ts, as well as best practices from the field and guidance on how you can implement them in your organization. Speakers include will include Elaine Coffman, SVP, Health & Benefits, Automotive Practice Leader, Marsh & McLennan Agency LLC, Mark Knoth, Partner and Chair of Labor & Employment Practice, Kerr Russell, Stacy Payne, Personal Development Director, Chelsea Milling Company, and Tiffiney Woznak, Director, Talent Management, MAHLE Industries, Incorporated. The session is intended for employees who are involved with executing strategy, creating policy, transferring knowledge and creating great teams. Session Sponsor: The third employee engagement event, “Driving Engagement Through Leadership Selection and Development” will be held Sept. 19, 2018. 16 │ OESA News - 2018 Third Quarter
OESA EVENTS
30th Annual Canada/U.S. Automotive Supplier Event | Sept 24 The Original Equipment Suppliers Association (OESA) and the Automotive Parts Manufacturers' Association (APMA) are pleased to announce the 30th annual Canada/U.S. Automotive Event on September 24, 2018, at The Henry in Dearborn, Mich. Organized in cooperation with OESA, APMA and the Consul General of Canada, Detroit, the event is designed to foster collaboration between OEMs and U.S. and Canadian automotive suppliers. Joe Hinrichs, executive vice president and president of global operations, Ford Motor Company, will be this year’s guest speaker. Hinrichs will share his unique perspective on the future of the automotive industry and the role Ford will play in the new mobility landscape. This annual event attracts hundreds of high-level automotive supplier industry executives from the U.S. and Canada and sells out quickly. For registration assistance and partnership opportunities, call 248.952.6401 or info@oesa.org.
Town Hall Meetings Aug 20
FCA Town Hall Novi, MI
Sept 13
Volkswagen Town Hall Novi, MI
Sept 18
Honda Town Hall Livonia, MI
Oct 2 Nov 30
Nissan Town Hall Livonia, MI Ford Town Hall Dearborn, MI
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OESA MEMBERSHIP
WELCOME NEW MEMBERS Powertech America Sales, LLC 400 Galleria Officentre Suite 515 Southfield, MI 48034 (248) 9528659 http://www.powertech.co.kr/en/ Member Representative: Yoosung Jung, Sr. HR Specialist Alternate Representative: Yujin Kim, Sales Manager Incorporated in 2001, Hyundai Powertech is a main auto parts manufacturer of Hyundai Motor Group, that specializes in automotive transmissions. Established as the nation’s first automatic transmission specialist, Hyundai Powertech has pursued world-class quality based on unceasing R&D & investment efforts. With outstanding production capacity, the company has a full line of transmission products from compact cars to full-size cars and has been able to entrench its strong market position as a transmission specialist. Going forward, Hyundai Powertech will attain global competitiveness, enhance its brand equity and accomplish the technology innovation so that the company will lead the global transmission market with its differentiated products, productivity & distribution channel.
LG Electronics 1835 Technology Drive Building E Troy, MI 48083 (248) 268-5100 http://www.lg.com/us/business/vehicle-components Member Representative: Joseph T. Boyle, Senior Director Alternate Representative: Kenneth Chang, Senior Vice President Proud new OESA member LG Electronics is a leading global supplier of advanced vehicle components. The LG Vehicle Components Company focuses on commercializing autonomous and environmentally responsible automotive components and core solutions based on LG’s proprietary technologies. Its Smart Solutions business includes a diverse lineup of offerings such as infotainment systems (audio video, audio video navigation, etc.), advanced driver assistant system, connectivity and other intelligent products. Green Solutions focuses on electronic powertrains (motor/drive unit/inverter/ converter), battery packs, vehicle thermal systems and lighting solutions (head/rear/interior lamp). Later this year, LG will open a new U.S. factory for advanced electric vehicle components in the Detroit suburb of Hazel Park. LG Electronics Inc. is a $55-billion global innovator in technology and manufacturing with operations in more than 100 locations around the world. In addition to Vehicle Components, LG’s core business areas are Home Appliances & Air Solutions, Home Entertainment, Mobile Communications and Business-to-Business.
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OESA MEMBERSHIP
Morpace, Inc. 31700 Middlebelt Road, Suite 200 Farmington Hills, MI 48334 (248) 737-5300 www.morpace.com Member Representative: Greg Swando, Sr. Director, Automotive Alternate Representative: Stephanie Salvadero, Marketing Manager For more than 40 years, Morpace has been providing strategic research and consultative direction to leading automotive manufacturers and suppliers around the globe. Its automotive practice leads the way in applying intelligent solutions, delivering more than just raw numbers and data. It provides the missing layer of context required to direct strategic decisions with actionable insights. Whether its gauging consumer sentiment around new and emerging products, identifying unmet needs through qualitative ideation, or better understanding how big data and IoT can be leveraged in today’s connected world, Morepace's solutions are being integrated with internal design and product planning initiatives to support the framework of our client’s business development initiatives. Bottom line, it bring their clients closer to their customers. Morpace is excited to announce it has joined forces with Market Strategies International, as part of an acquisition of both firms by STG. The transaction will inject new investment into the combined firm, which will rebrand under a new name later in the year, accelerating growth to better serve its clients through stronger data solutions, operational excellence, and client centricity.
Orhan Automotive 1160 Centre Drive Auburn Hills, MI 48326 (248) 6375658 http://orhanholding.com/en Member Representative: Spencer Hamilton, North American Business Development Manager Orhan Holding is a global automotive supplier supplying the automotive market. Under the Orhan Automotive Group, it supplies to the Fluid Transfer, Shifters and Flexible Cables, Metal and Springs and Exhaust Systems sectors. Orhan Automotive has a global production footprint with manufacturing locations in 13 countries spanning three continents (Europe, Asia and North America). Orhan designs and develops products in R&D locations in Turkey, the United Kingdom, North America and Asia strategically located for customers. Its customer-oriented global growth and service strategies allows Orhan to meet the global full-service supplier expectations of the OEM customer.
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OESA MEMBERSHIP Park Ohio Products 30000 Stephenson Hwy Unit B Madison Heights 48071 (248) 228-8904 http://fluidrouting.com/ Member Representative: Jay Egelski, Vice President, Finance Alternate Representative: Bob McConahy, Vice President, Purchasing Park Ohio Products is a leader in the transporting and routing of fluids, fuels and gases in vehicles manufactured by major original equipment automotive manufacturers. Its primary products are fuel filler assemblies and extruded hoses, as well as manufacturing various automotive fluid handling components. Pepper Hamilton, LLP Suite 1800 | 4000 Town Center Southfield, Michigan 48075-1505 (248) 359-7300 www.pepperlaw.com Member Representative: Todd C. Fracassi, Esq., Partner Alternate Representative: Sean P. McNally, Esq., Partner Pepper Hamilton LLP has more than 425 lawyers in 13 offices across the United States, including Detroit. Pepper Hamilton was one of the first national law firms to enter the Detroit market, opening an office in downtown Detroit in 1979. Its Detroit-based lawyers advise clients on commercial, litigation, bankruptcy and reorganization, energy, environmental, construction, real estate, and labor and employment matters. Through Pepper Hamilton's automotive industry group, it provides end-to-end legal services tailored to automotive companies and suppliers. Pepper Hamilton counsels automotive clients on a number of issues, from corporate transactions and high-exposure litigation to regulatory advice and data privacy/security issues. It understands the unique aspects of the dynamic automotive industry and use the unique skills and talents of its people, the breadth of its practices, and the depth of its experience to work with clients to deliver powerful solutions that best suit their legal and business needs. Swoboda, Inc. 2701 Cambridge Ct, Ste 401 Auburn Hills, MI 48326-2514 (248) 481-6170 www.swoboda.de Member Representative: Gary Hawkins, General Manager N.A. Alternate Representative: Wendel Martin, New Business Development Manager Swoboda Technologies is one of the automotive industry’s most important partners globally providing solutions for Propulsion, Chassis, Seating, and Smart Systems. Its expertise in the design and development of high-precision automotive electronics, mechatronic applications, and sensors have positioned Swoboda to match the needs of the current automotive market now and in the future. Swoboda Technologies was formed from the merger of Hartmann-exact and Swoboda Molding Elements. Swoboda Technologies is a successful global partner of the automotive industry with over 3,800 employees at ten locations worldwide. With over 80 years of history to draw upon and an enthusiastic vision of the future, Swoboda welcomes the challenges that others may shun. 20 │ OESA News - 2018 Third Quarter
COUNCIL MEMBERS
Knowledge, Trust and Support - A Council Member's Experience Ginger Juncker Executive Director, Councils and Member Programs 248.430.5953 │ gjuncker@oesa.org Meet Judy.* Judy is an HR executive who has experienced - first hand all that the automotive supplier industry can be. From starting a new role, only to have her mentor leave the company to getting the opportunity to develop a new HR; and accepting the challenge of an M&A that leaves the company with redundant rolls. Through it all, Judy has relied on her network of peers she developed as a member of the OESA Human Resources (HR) Council. When Judy started in HR, she felt like the proverbial ‘deer in the headlights.’ We’ve all felt this before. Overwhelmed, looking for guidance, wanting to learn and searching for someone she felt comfortable enough with to ask questions. Judy found that in the HR Council. “I found valuable speakers, a wealth of knowledge, and a trusted network. I learned best practices from others and was able to take ideas back to my company.”
OESA Peer Group Councils + • • • • • • • • • • • • • • • •
Advanced Technology Council Human Resources Council Automotive Public Relations Council IT Leadership Council Chief Executive Officers Council Legal Issues Council Chief Financial Officers Council Sales Executive Council Chief Purchasing Officers Council Tooling Council Communications Executive Council Warranty Management Council Enterprise Leadership Council Young Leadership Council Environment, Health and Safety Council MEMA Government Affairs Council
Judy continued to leverage her involvement in the HR Council as she grew in her role and has learned to manage the myriad of changes that occur within the industry. Most +Council requirements must be met for membership. recently, Judy experienced role redundancy as a result of M&A activity. One of the first questions she asked when interviewing with her new company centered around her need to maintain her membership on the HR Council. The new role brings a new company, and a new workforce with different characteristics and needs. As Judy says, “I know I will need to lean on my peers.”
"OESA has helped me grow in my HR role.”
Have you ever felt like Judy? Do you wish you had a group of peers that are experiencing similar things as you? OESA has 16 peer group councils designed to help members learn from subject matter experts, as well as each other. Councils are one of the most cited benefits of membership in OESA. Be our guest – and experience what Judy experiences at each and every council meeting: • • •
Valuable insights from subject matter experts and peers Connections with a trusted network Opportunities to benchmark peers through surveys and roundtable conversation
If you are interested in any of the following councils, please contact Ginger Juncker, Executive Director, Councils and Members Programs for OESA at 248-430-5953 or gjuncker@oesa.org *Judy is not the member’s real name. We value our membership privacy and have changed the name.
OESA News - 2018 Third Quarter
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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
Nominate Young Supplier Leaders to Young Leadership Council (YLC7) OESA is seeking nominations for the seventh Young Leadership Council (YLC7). This council is open to all member companies and provides a forum to develop and retain future leaders. Participants come from all functional area including finance, sales, marketing, “The access to industry leaders manufacturing, human resources, and speakers providing insight into purchasing, logistics, communications or engineering. leadership and critical issues was
very eye opening and not available
During the 2-year program, council anywhere else.” members gain insight from subject - YLC Alum matter experts on leadership, personal development and industry topics and trends. Presented in a peer-to-peer environment, attendees share best practices and experiences.
Graduates leave the program better prepared for increased responsibility and equipped for the next step in their career with their member company. Executives can nominate candidates for the Young Leadership Council by completing the nomination form. The first meeting is October 11, 2018, at the OESA Conference Center in Southfield, MI. Recent Council Meeting Agenda Highlights: Leadership From My Perspective Presenters: • Laurie Harbour, President and CEO, Harbour Results • Carrie Uhl, Vice President, Procurement, MAGNA International • Ken Hopkins, President and CEO, Neapco, Inc. YLC Member Tours • Autoliv Technology Center - Two Sled Simulation Labs, Deployment & Impact Airbags Lab, Seatbelt Durability Lab, and ATD Lab • Robert Bosch, LLC - Development & Exploration of Bosch's "Next Generation Workspace" • Google - Understanding Google's workplace dynamics Topics Relating to The Industry and Young Leaders • Creating a High Performing Team • Transitioning from Manager to Leader - A Panel Perspective • What, How and Why-Based Leadership in Today's VUCA (Volatility, Uncertinity, Complexity, and Ambiguity) World
Paul Doyle CEO Coastal Automotive (Continued on page 23)
For more information on the OESA Young Leadership Council, contact Keiyania Mann at 248.430.5952 or kmann@oesa.org. 22 │ OESA News - 2018 Third Quarter
CALENDAR OF EVENTS
2018 UPCOMING EVENTS Aug
9
Aug
14 Aug
22 Sept
24 Nov
7
OESA Board of Directors
(Continued from page 22)
Automotive Commodities Event MSU Management Education Center Troy, MI Industry Disruptors: R.J. Scaringe, Rivian Automotive The Inn at St. John's Livonia, MI Engaging Experienced Employees MSU Management Education Center Troy, MI
20
30th Annual Canada/U.S. Automotive Supplier Event with Ford's Joe Hinrichs The Henry Dearborn, MI 2018 OESA Annual Conference Suburban Collection Showplace Novi, MI
Volkswagen Town Hall Novi, MI
Sept 18
Honda Town Hall Livonia, MI
Oct 2 Nov 30
7
Aug
9
Aug
16 Aug
30
Kenichiro "Ken" Ito Executive Director DENSO Corporation
Chris Obey President, Automotive Flex Lon Offenbacher President and CEO Inteva Products
Nissan Town Hall Livonia, MI Ford Town Hall Dearborn, MI
UPCOMING OESA COUNCIL MEETINGS* Aug
Ken Hopkins President and CEO Neapco Holdings, LLC
Don Manvel Chairman and CEO AVL Americas
FCA North America Town Hall Meeting Suburban Collection Showplace Novi, MI
Sept 13
Douglas J. Grimm Immediate Past Chairman of the Board, MEMA Michael Haughey President North American Stamping Group, LLC
Upcoming OEM Town Hall Meetings Aug
John Dunn President and CEO, The Americas Plastic Omnium Auto Inergy Division
Enviromental Health & Safety Council Meeting OESA Conference Center Southfield, MI Chief Purchasing Officers Council Meeting MSU Management Education Center Troy, MI Young Leadership Council 5 - Graduation Meeting OESA Conference Center Southfield, MI
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.
Young Leadership Council 6 OESA Conference Center Southfield, MI *Open to peer group council members and invited guests. OESA News - 2018 Third Quarter
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A MEMA Division
Original Equipment Suppliers Association 25925 Telegraph Rd., Ste. 350 │Southfield, MI 48033-2553 248.952.6401 │oesa.org │info@oesa.org Connect with us on
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