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Industry Experts Analyze Supplier Industry Funding Gap

A group of industry experts and representatives from the original equipment manufacturer (OEM) and supplier industries joined together to analyze the funding gap that hampers suppliers’ ability to expand and places pressure on the OEMs this morning during a session titled “Funding Automotive Growth: Stimulating Job Creation in the Motor State.” The panel focused on why funding continues to be an issue, how it can be remedied and ways to find middle ground between traditional and mezzanine lending.

Panelists included Donald Baty Jr., finance practice group co-chair and partner, Honigman Miller Schwartz and Cohn LLP; Neil De Koker, founding president and CEO, Original Equipment Suppliers Association; Osamu “Simon” Nagata, president and CEO, Toyota Motor Engineering & Manufacturing N.A., Inc.; and Tom Walsh, business columnist, Detroit Free Press. BBK President and CEO Bill Diehl moderated the session.

The panelists ultimately concluded that one of the keys to closing the funding gap hinges on greater communication between the OEMs, the supply base and the lending community. They also concluded that oftentimes, traditional lenders aren’t well educated on the value of supplier equipment and the suppliers are often unaware of programming available to them for capital financing. This session was hosted by MICHauto.