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The eBearing News
June 6, 2000
Timken Joins Other OEM Automotive Suppliers
Seeking Covisint Alternative
copyright © 2000 eBearing Inc.
Timken Company (Canton, Ohio) announced today that it has joined the six leading
OEM automotive suppliers in the search for an e-marketplace solution.
Timken joins Dana Corporation, Delphi Automotive Systems, Eaton Corporation,
Motorola Inc., TRW Inc. and Valeo S.A., the top independent suppliers to the automotive
industry.
Buyers and suppliers in the OEM automotive industry are now split and forming
alternative Internet-based e-market exchange networks.
The catalyst for the creation of this consortium was the three largest U.S. automakers
forming their Internet-based auto parts exchange for shared purchases and leveraging purchasing power, called Covisint (www.covisint.com). Covisint, according to Ford,
General Motors and DaimlerChrysler, is an effort to use their combined purchasing
power to leverage economies of speed and scale while lowering acquisition costs.
Suppliers, on the other hand, see Covisint as the latest attempt to squeeze them while
automakers reap the rewards in higher profits. Covisint now is not much more
than a series of press releases and a trio of co-Presidents with no business plan or
revenue model. But if it is successfully implemented and the three competitors set
aside 80 years of hard competition, OEM suppliers have much to lose and little to gain.
If the OEM suppliers are successful in forming their own marketplace against Covisint,
one analyst said the end result would be a draw, with no exchange able to take the upper
hand. With no clear Exchange winner and no clear direction, suppliers win because the
marketplace would largely return to the way it was.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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