6 Tire Makers to Create Online Marketplace

Goodyear Tire & Rubber Co., the world’s biggest tire maker, and five of its largest competitors said they will get together to start an online market in raw materials, machines, other equipment and services. Goodyear, Sumitomo Rubber Industries, Michelin, Continental, Pirelli and Cooper Tire & Rubber Co. agreed to create the marketplace, known as RubberNetwork.com. The industry’s purchasing totals $50 billion annually. Auto makers and parts suppliers are moving to Web-based purchasing to combine their purchasing power and streamline their buying operations. In February, auto makers General Motors Corp., Ford Motor Co. and DaimlerChrysler said they would create a joint online procurement system. The tire makers did not indicate how much they expect to save by combining purchasing. “It’s mainly on transaction and administration costs that any savings will be made, as the companies are barred from ganging together to buy raw materials like rubber,” said Ludovic Fava, an analyst at Credit Lyonnais in Paris. The tire makers said their exchange could be linked into other online business-to-business purchasing sites.

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