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Supplier Associations Applaud Vehicle Builders' Plans

28 February 2000

Supplier Associations Applaud Vehicle Builders' Plans to Harmonize e-Commerce Approach, Seek Ongoing Dialogue with OEM Customers

    RESEARCH TRIANGLE PARK, N.C., Feb. 26 -- The Motor &
Equipment Manufacturers Association (MEMA), and its affiliate, the Original
Equipment Suppliers Association (OESA), welcomed Friday's announcement that
Ford Motor Company, General Motors Corporation, and DaimlerChrysler AG plan to
combine efforts for a business-to-business portal for e-commerce with their
automotive suppliers.
    MEMA and OESA hope that other international original equipment
manufacturers (OEMs) also will cooperate with Ford, GM, DaimlerChrysler, and
the automotive supplier community to ensure uniformity and accessibility of
the industry's emerging B2B e-commerce system.
    "This important step by Ford, General Motors and DaimlerChrysler will help
create momentum toward an industry-wide effort to harmonize e-commerce
approaches.  This will ensure that all segments of our industry -- including
suppliers, OEMs, and other industry participants at every level -- can reap
the benefits of the e-commerce, business-to-business revolution," said Robert
R. Miller, MEMA president and CEO.
    "There are important business issues to be discussed that affect
supplier-OEM commercial relationships, so dialogue with suppliers is vital,"
said Neil De Koker, OESA managing director.
    In recent months, OESA has opened a dialogue with key executives of
leading vehicle assemblers to work toward the goal of avoiding duplication of
investment and resources in e-commerce in the OE market segment.  Such
duplication would require OE suppliers (OES) to invest in, and maintain,
different hardware, software or resources to match their individual OE
customers' systems.
    MEMA, through its international programs, has worked closely with Japanese
OEMs, in particular, to encourage similar technical harmonization of
e-commerce initiatives on a global basis.  MEMA has special expertise in
electronic commerce through one of its subsidiary enterprises, the Management
Information Systems Group (MISG).  MISG has provided paperless commerce to the
automotive parts industry for more than 20 years.
    De Koker said, "Original equipment suppliers see great benefit in a
unified approach to B2B commerce.  It allows them to integrate their own
supply-chain management and quality improvement initiatives with those of
their international OEM customers.  Friday's announcement by Ford, General
Motors, and DaimlerChrysler encourages us to move these efforts forward."

    Founded in 1909, MEMA exclusively represents and serves more than 700
North American manufacturers of motor vehicle components, tools and equipment,
automotive chemicals, and related products used in the production, repair, and
maintenance of all classes of motor vehicles.
    MEMA, headquartered in Research Triangle Park, N. C., has offices in
Washington, D.C.; Yokohama, Japan; Brussels, Belgium; Mexico City, Mexico; and
Sao Paulo, Brazil.

    OESA, founded in 1998, provides a forum for automotive original equipment
suppliers to address issues of common interest, serves as a source of industry
information and analysis, and promotes the interests of the original equipment
suppliers. OESA, headquartered in Troy, Michigan, is an affiliate of the Motor
& Equipment Manufacturers Association (MEMA).