AIAG Members Addressing Conflict Minerals Used In Vehicles
(3BL Media) Southfield, MI - December 16, 2010 - Members of AIAG, a not-for-profit, member-supported organization that works collaboratively with a wide range of manufacturing companies, suppliers and service providers to help them operate at peak performance, are actively engaged in a work group that is developing an industry solution to help automakers and suppliers comply with provisions of the Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act).
Under the act, companies must report if minerals used in their products originated in the Democratic Republic of Congo or surrounding countries, a region that has been wracked by violence and civil war for several years. Companies also must document the steps they have taken to avoid using minerals that finance conflict within the region, such as tin, tantalum, tungsten and gold.
Yesterday, the U.S. Securities and Exchange Commission released proposed rules on conflict minerals. Final rules are expected in April 2011. AIAG’s solution will help companies understand the due diligence required and encourage transparency in the supply chain to enable compliance.
According to J. Scot Sharland, executive director of AIAG, automakers and their suppliers will face a daunting challenge in meeting the requirements of the act because of the huge volumes of raw materials used in the industry and the complexity of the global supply chain.
“Global sourcing lacks transparency, and decisions made by one small company can have ripple effects on larger manufacturers, which will make compliance with the Dodd-Frank Act a difficult but not insurmountable challenge,” Sharland said.
“Our project will develop common solutions that the entire industry can adopt quickly and efficiently because it will be a joint effort by automakers and suppliers, who will dive into the supply chain process and draw on the experience of other industries to indentify best practices,” he added.
AIAG has nearly three decades of experience working collaboratively with automakers, suppliers, service providers, government agencies and in academia. Among the wide variety of initiatives under way at AIAG are projects to address global working conditions, improve workplace health and safety, drive product quality, reduce shipping errors, and create standards and guidelines for greenhouse gas emissions estimation.
AIAG is a unique not-for-profit organization where, for more than 25 years, OEMs, suppliers, service providers, government and in academia have worked collaboratively to drive cost and complexity from the supply chain via global standards development and harmonized business practices. AIAG membership has grown to include preeminent OEMs, such as Caterpillar, Chrysler Group LLC, Ford Motor Company, General Motors Company, Honda, Navistar International, Nissan, Toyota and many of their part suppliers and service providers. For more information, please visit the organization’s Web site at www.aiag.org.