Due to the complexity of the global supply chain and the large volumes of raw materials used throughout the automotive industry, suppliers must prepare for, and understand the requirements this act imposes upon them or their customers.
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Southfield, MI (PRWEB) May 16, 2011
AIAG, a not-for-profit, member-supported organization focused on collaboration with a wide range of manufacturing companies and service providers is hosting a webinar on May 20. The session will educate and prepare suppliers for reporting that will enable compliance with provisions of the Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act).
The act requires manufacturers regulated by the Security and Exchange Commission (SEC) to report if their products contain metals derived from conflict minerals, such as tin, tantalum, tungsten and gold, that originated in the Democratic Republic of Congo or surrounding areas. Also, companies must document the steps they have taken to avoid using minerals that finance conflict within the region. These reports will be required to be included in annual public SEC filings. Suppliers not directly reporting to the SEC may be subject to the requirements indirectly via SEC-reporting customers.
“Due to the complexity of the global supply chain and the large volumes of raw materials used throughout the automotive industry, suppliers must prepare for, and understand the requirements this act imposes upon them or their customers,” said J. Scot Sharland, executive director of AIAG. “This will not be a simple process.”
Representatives from Chrysler Group LLC, Ford Motor Co., General Motors Company, Honda of America Mfg., Inc., Nissan North America, Inc. and Toyota Motor Engineering & Manufacturing North America, Inc, began work at AIAG in 2010 to help educate and inform suppliers on the due diligence required for compliance to the Dodd-Frank Act and to facilitate development of a robust validation and reporting process for the industry. On April 19, 2011, the six OEMs issued a joint letter to suppliers informing them of the context of violence in the DRC and upcoming requirements. The automakers told suppliers that it is the intention of the companies to ensure that the parts and assemblies in vehicles do not contain Conflict Minerals which have contributed to the armed conflict in the DRC.
“This federal legislation demands added transparency throughout the supply chain, as a decision made by one small company in a different part of the world, can impact both brand and the ability to comply of automakers and large suppliers,” added Sharland.
The May 20th webinar on Conflict Minerals will inform suppliers on the situation faced by mines and communities in the DRC, the anticipated impact on the industry by the Dodd-Frank Act, and how companies can prepare themselves for expected reporting requirements. The specific SEC requirements will be published in August. Webinar speakers include:
- Elly Bradford, Manager, North American Purchasing, Honda of America Manufacturing, Inc.
- Monique Oxender, Global Manager, Supply Chain Sustainability, Ford Motor Co.
- Sasha Radovich, Manager, Advisory Services, BSR
- Marilyn Smith, General Motors Executive Loan to AIAG, General Motors Company
The webinar is free for AIAG members and $25 for non-members. Register online at http://www.aiag.org or by calling 248-358-3003.
AIAG is a not-for-profit organization with more than 25 years experience working with OEMs, suppliers, service providers, government and academia to collaboratively drive down costs and streamline the complexity of the supply chain by developing global standards and harmonizing business practices. There are more than 600 AIAG member companies, including Caterpillar, Inc., Chrysler Group LLC, Ford Motor Company, General Motors Company, Honda of America Manufacturing, Inc., Navistar International, Nissan North America, Inc., Toyota Motor Engineering & Manufacturing North America, Inc., and many of their part suppliers and service providers. For more information, visit http://www.aiag.org.
AIAG Contact: Lorrie Kinney
Quell Group Contact: Matt Frendewey