Category Archives: Supply Chain

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Navigating Peaks and Valleys: The OESA’s Industry Outlook Panel

sales
The Original Equipment Suppliers Association (OESA) celebrated its 20th Annual Conference this week in suburban Detroit under the theme: “Transom Innovate Lead.” And while this year’s discussion that occurred the day after Election Day was dominated by trade and tariff concerns as well as discussions of talent strategies, leadership and technology, the afternoon session included … Continue reading this entry

Understanding and Coping with the U.S.-Mexico-Canada Agreement: USMCA Updates NAFTA Rules of Origin for Motor Vehicles and Auto Parts

supply chain
On September 30, 2018, the United States, Mexico and Canada announced that they have reached an agreement on a “new, modernized trade agreement for the 21st Century” (USTR, 09/30/2018). Going by the new name of the US-Mexico-Canada Agreement (USMCA), it will entirely replace the North American Free Trade Agreement (NAFTA).… Continue reading this entry

The Impact of a No-Deal Brexit Outcome

Brexit
On October 17, 2018, politicians expected to finalize Brexit terms at a 24-hour summit of European Union leaders in Brussels.  Had things gone to plan, a special one-off meeting in November was all that remained to sign the final Brexit deal between the European Union and the United Kingdom.  But the October summit fell apart.  … Continue reading this entry

Strategies for Protecting Against Vendor Payment Fraud

balance sheet
Cybercrime is an ever-increasing threat from which manufacturers are not immune. Although reliable statistics are not available, one particular type of scheme that seems to be on the rise is vendor payment fraud.  In cases of vendor payment fraud, the fraudster poses as an existing supplier and provides the manufacturer with seemingly legitimate instructions changing … Continue reading this entry

Meet the New NAFTA, Same as the Old NAFTA?

manufacturing
After all the gloom and doom and worry, the United States, Canada and Mexico tweaked the North American Free Trade Agreement.  Most importantly (apparently), they changed the name.  Banished is NAFTA.  In its place is the United States-Mexico-Canada Agreement (USMCA).  USMCA might be a bit more cumbersome to say, but that might be the largest … Continue reading this entry

Force Majeure Best Practices – Hurricane Florence Edition

hurricane
The threat presented by Hurricane Florence has forced government officials to order South Carolina residents to evacuate hurricane zones. Safety should always be the No. 1 priority for the millions of individuals and families affected by the storm. The mandatory evacuation and closure of many businesses and schools in the area has shut down a … Continue reading this entry

3D Printing Continues Making Inroads in Auto Industry

3D Printing
Additive manufacturing (aka 3D printing) has long been a growing part of the auto industry.   Companies started out using 3D printing for prototypes and small batch production.  As technology advanced, the role of 3D printing is rapidly increasing.  This week, several major players in the auto industry announced new developments for the role of 3D … Continue reading this entry

Raw Material and Commodity Purchasing – Key Concerns for Manufacturers

labor and employment
On August 9, 2018, Original Equipment Suppliers Association (“OESA”) held its 2018 Automotive Commodities Event covering a variety of topics related to commodities purchasing, including strategies for price risk management, insights into future mixed material usage in the automotive industry, and legal strategies for navigating volatile commodity markets.  Highlights of the issues discussed during the … Continue reading this entry

Automotive Industry Fights Section 232 Tariffs

labor and employment
It is difficult to find anyone affiliated with the automotive industry in the United States, Europe, Asia or anywhere else who is in favor of tariffs on automobiles, automobile parts, automobile raw materials or anything else that goes into making a car or truck or other vehicle.  The industry seems to be in rare consensus … Continue reading this entry

Automakers Celebrate Strong June Sales as Industry Prepares for Potential Impact of Tariffs

tax credit
Automakers reported strong June sales in the United States.  Riding a wave of truck sales and new crossovers, GM posted a 4.6% increase for the second quarter and increased its market share to 16.6%.  Ford increased total sales in June by 1.2% over June 2017, and increased SUV and truck sales by 8.9% and 3.2%, … Continue reading this entry

Tariffs Wreak Havoc with The Auto Industry

tariffs
Trade issues have been concerning the automotive industry for some time.  Whether it be NAFTA renegotiations (or NAFTA scrapping), Section 232 Tariffs, Exceptions to Section 232 Tariffs, ever since the current administration was elected, the Dashboard has been predicting that trade issues could upend the automotive industry.  That day appears to have come as the … Continue reading this entry

Supply Chain Disruptions Reportedly Increased by 30 Percent Last Year

supply chain
According to a report by JLT Specialty, the automotive industry “was the most disrupted sector in 2017” with an increase in supply chain disruptions by 30 percent over 2016.  The JLT report identified the top five supply chain events as: Factory Fires or Explosions Mergers and Acquisitions Hurricanes, Typhoons, Cyclones Business Sales or Spin-offs Labor … Continue reading this entry

Understanding The Warranty Of Fitness For Particular Purpose In The Automotive Supply Chain

tariffs
For automotive suppliers, some of the most important terms in any contract for the purchase or sale of goods are the warranties that apply to those goods. This article will address one particular kind of warranty – the warranty of fitness for particular purpose. A warranty of fitness for particular purpose generally arises in one … Continue reading this entry

New Exclusions Process Gives Automotive Companies the Possibility of Exemption from Section 232 Steel and Aluminum Tariffs

tariffs
On March 23rd, automotive companies that rely on imported steel and aluminum were confronted with new special tariffs of 25 percent on all imports of steel and tariffs of ten percent on all imports of aluminum, with temporary exclusions for Argentina, Australia, Brazil, Canada, Mexico, the member countries of the European Union, and South Korea. … Continue reading this entry

New Exclusions Process Opens Up Potential Relief from Section 232 Tariffs for Users of Specialty Steel and Aluminum Products or Companies that Serve National Security Needs

On March 23, steel and aluminum users were confronted with new special tariffs of 25 percent on all imports of steel and tariffs of ten percent on all imports of aluminum, with temporary exclusions for Argentina, Australia, Brazil, Canada, Mexico, the member countries of the European Union, and South Korea.1 These measures created a great … Continue reading this entry

Overview of Distribution Supply Chain Options

supply chain
When determining how to sell a product in the marketplace, there are a number of supply chain options from which to choose, each with its own set of legal implications.  However, the primary consideration in determining how to sell a product should be what makes the most sense from a business perspective (for example, if … Continue reading this entry

The Automotive Sector Faces Sharply Increased Duties, Pricing Uncertainty Following Announcement of Section 232 Tariffs on Steel and Aluminum

On March 1st, the automotive sectors that consume steel and aluminum were confronted with a potentially large tariff rate increase. The section 232 measures are intended to raise the prices of all steel products – whether imported or domestic – and thus will have an impact on any major purchaser of steel, which includes most … Continue reading this entry

Protecting Your Supply Chain in the Face of Potential Auto Industry Challenges in 2018

Workforce
As the economy has improved and unemployment has fallen in the nearly 10 years since the Great Recession, North American vehicle sales volumes have also steadily increased and the forecast remains strong for 2018. Bloomberg estimates that approximately 16.7 million vehicles will be sold in 2018, with the majority being light trucks and sport utility … Continue reading this entry

Mobility, New Technology, Compliance Take Center Stage at Foley’s 2018 Auto Show Program

City Intersection
Exponential technological growth and transformative change are creating unique opportunities and challenges for the automotive industry. That was a key theme of Foley’s 2018 Auto Show Program, hosted by Foley partners Mark Aiello and Ann Marie Uetz and held on January 17, 2018, alongside the North American International Auto Show in Detroit.… Continue reading this entry

NAFTA Renegotiations Create Uncertainty for Automakers

white house
The promise to renegotiate or else withdraw from NAFTA was one of the central points of the Trump campaign that helped him win states like Michigan, Ohio, and Pennsylvania.  In keeping with his campaign promises, the Trump administration has since proposed to tighten automotive content rules and rules of origin (from 62.5% to 85%) to … Continue reading this entry

Battery Development in the Auto Industry Leads to Electrification of Ships and Planes

supply chain
With the release of the new Tesla semi-truck in November, the public’s attention was captured with the idea of emission-free movement of freight.  In the United States, over 70% of freight is carried at some point by truck, and the potential transition from diesel to electric could have a dramatic impact on emissions. However, recent developments have … Continue reading this entry

SUV Sales Again Carrying the Auto Industry

SUV sales
If it seems like déjà vu, it’s not just you: SUVs are again leading the charge on new vehicle sales.  Buoyed by low gas prices and growing millennial families, SUV sales have increased by 6 percent from 2016 to 2017 (through October)—even though the overall car market has declined by 2 percent during the same … Continue reading this entry

FAST Act Recall Pilot Program Gets Underway in Maryland

Recall
One of the more bedeviling problems for the automotive industry (and for manufacturers in general) is how to alert consumers to pending recalls, and getting consumers to comply with those recalls.  According to NHTSA, only 70% of recalled vehicles are repaired, even though such recalls are frequently safety-sensitive and repairs are free to consumers.… Continue reading this entry

Stout Issues Third Annual Warranty and Recall Report

recall
By Guest Authors:  Neil Steinkamp and Robert Levine of Stout Risius Ross, LLC Massive automotive recalls continue to grab headlines and raise concerns industry-wide. Recalls of light vehicles topped 50 million units in 2016, representing the third consecutive year of elevated – and record setting – automotive recall activity. Stout’s third annual Automotive Warranty & Recall Report provides a … Continue reading this entry