Stout was retained to aid in assessing and understanding the potential warranty and recall risk for certain components and the range of potential outcomes including the “tail risk” associated with various stress-test or “worst-case” outcomes. Our analysis and review focused on the risks associated with the use of polyamide and other composite materials in automotive components. Stout performed extensive research and analysis across public and proprietary data sources to identify historical defects associated with the relevant component parts as well as polyamide and other composite materials more broadly. Based upon this research and analysis, Stout measured the risk associated with the supply of subject components and developed an estimate of the probability-weighted dollar risk exposure.

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