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The eBearing News
November 2, 2000
Timken, Others Abandon anti-Covisint Exchange
copyright © 2000 eBearing Inc.
The Timken Company (Canton, Ohio), along with Bosch, Delphi, Dana, Eaton, TRW, Tenneco
and Valeo, have abandoned their five-month-old idea of developing a joint online
purchasing exchange. Tenneco replaced Motorola's early participation in the venture.
[ read the original news story about the Timken exchange and Covisint ]
The stated intent of the venture was as a vehicle for the leading OEM auto
parts makers to join forces to cut purchasing and distribution costs while investigating
other e-marketplace opportunities.
However, the real intent was widely seen as simply a self-defense response to the
Covisint exchange.
Covisint is an online purchasing exchange set up earlier this year by the leading
automakers, General Motors, Ford and DaimlerChrysler AG. Covisint today still lacks a
unified leadership and has yet to advance much beyond the press release stage. Many
experts believe that there is no future in "coopetition" exchanges such as Covisint,
where otherwise strongly competitive manufacturers pool their purchasing power for
more effect purchasing, lower prices, better terms and lower acquisition overhead.
Most auto parts manufacturers see Covisint, if it does ever start operating in a
serious way, as a threat, designed solely to squeeze parts makers for lower prices.
It was not immediately clear why the parts makers' exchange was abandoned. The possibilities
are that it was an unworkable idea, that they could not agree on a strategy or technology,
that they are capitulating to the Covisint exchange or that they no longer view Covisint
as a serious threat.
Group spokesman Kevin Moyer of Dana Corporation said, "Each company is now pursuing
its own respective approach to e-business."
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Bruce Carr edited this content.
Copyrighted material; unauthorized reproduction prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2011, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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