Ford, GM Announce Plans for Online Parts Networks
Ford Motor Co. and General Motors Corp. plunged deeply into electronic commerce Tuesday, each announcing the formation of major electronic networks to link them with their tens of thousands of parts suppliers.
Ford said its joint venture with database software giant Oracle Corp., called AutoXchange, could save it several billion dollars a year by streamlining inventory, supply movement and even production costs in its $80-billion supply network. GM was reluctant to quantify its arrangement with e-commerce specialist Commerce One but said it expected substantial savings as well from the program, which it calls GM MarketSite. Each company has about 30,000 suppliers.
The companies’ dealers will also be able to participate in the systems, ordering parts directly from suppliers and even shaving costs by bidding on items in online auctions.
Each auto maker said its new Internet enterprise would be online early next year.
The Ford and GM deals were the biggest of a score of e-commerce announcements expected this week at the annual trade show of the Specialty Equipment Market Assn.
Ford Chief Executive Jac Nasser called the new electronic parts network “an essential e-commerce strategy” needed to carry the company into the 21st century. Nasser said that in the last year he has “spent more time with the Internet people than with the nuts-and-bolts people. It’s an indication of where the industry is going.”
That Nasser and GM counterpart G. Richard Wagoner used the SEMA show to stage their announcements illustrates how the once-modest trade event has blossomed into a major venue for auto makers and the thousands of “aftermarket” companies that provide owners with equipment to dress up the vehicles they buy.
Among scores of concept vehicles unveiled at the show Tuesday, Ford and the women’s Web site IVillage.com showed their Women’s Lifestyle Vehicle, a Mercury Villager with dozens of enhancements suggested by IVillage users. DaimlerChrysler unveiled the Howler, a hot-rod-styled, V-8-powered pickup truck version of the Prowler built by its endangered Plymouth division.
DaimlerChrysler’s new president, James Holden, is expected to use the show today as a platform to announce that the company will phase out the Plymouth division.
