VW Rejects U.S. Web Alliance; to Set Up Own

German car maker Volkswagen on Wednesday rejected overtures to join U.S. rivals in an online purchasing network and invited others to participate in its Internet marketplace, in a move set to divide the industry.

VW, Europe’s biggest car maker, said it had agreed to a technology partnership with IBM Corp., I2 Technologies Inc. and Ariba Inc. to set up an independent digital marketplace for the acquisition of parts, auto manufacturing equipment and office supplies.

VW, which spent around $48.9 billion on purchasing last year, said it hoped to eventually link its 6,000 suppliers to the network in a bid to cut costs. The platform is to start operating in the first half of next year.

VW did not disclose if it had been in talks to woo others to join its network but said it had no plans to set up a separate company to bundle common online purchasing.

VW’s decision to go it alone was widely expected after it had expressed reservations about joining forces with rivals across the Atlantic because of confidentiality concerns.

General Motors Corp., Ford Motor Co. and DaimlerChrysler announced in February they would pool their $240 billion a year procurement needs on a single network to drive down costs by squeezing suppliers for cheaper parts.

While VW has forged ahead with its own online purchasing network, leading Asian and European companies are still waiting to assess the success of common online purchasing ventures pioneered by rivals.

France’s PSA Peugeot Citroen and Germany’s BMW have said joining a common online purchasing initiative would be premature.

But France’s Renault and its Japanese partner Nissan Motor Co. have said they will join the U.S.-led initiative. Toyota Motor Co. is also expected to team up with Ford, GM and DaimlerChrysler.