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Federal-Mogul Driving Into Future With E-Business Strategy

6 September 2000

Federal-Mogul Driving Into Future With E-Business Strategy FEDERAL-MOGUL LOGO Federal-Mogul Corporation Logo. (PRNewsFoto)[KI] SOUTHFIELD, MI USA 05/25/2000    

    SOUTHFIELD, Mich., Sept. 6 Federal-Mogul Corporation
has launched several e-business initiatives aimed at doing
business more efficiently and achieving better, faster communication with
customers, suppliers, investors and employees.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20000525/DETH025LOGO )
    "We want to be a leader in e-business," said Richard Snell, chairman and
chief executive officer of Federal-Mogul, a $6.4-billion global automotive
parts supplier.  "We're focusing on e-business opportunities that offer the
most promise for our customers and move us toward being the low-cost provider.
We're also Web-enabling internal processes to gain overall efficiencies."
    In May, Federal-Mogul became one of the first automotive suppliers to sign
a letter of intent to join Covisint, the new business-to-business automotive
Internet exchange that could become the world's largest online marketplace.
Federal-Mogul representatives have been actively involved in developing the
exchange, which will provide Web-based procurement, supply chain and product
development services.
    "We are pleased to be playing a role in defining what Covisint will be,
and we hope it will lead to efficiencies and better communication with our
customers and suppliers in the future," said Kimberly Welch, vice president,
communications and e-business, Federal-Mogul.
    Welch said Federal-Mogul is concentrating on e-business applications that
leverage knowledge and information, make it easier for customers to do
business with the company, and transform core operations into the electronic
world.  "We believe the Internet can help us execute our business strategy,
while helping our customers gain a competitive edge," Welch said.
    Other e-business initiatives launched by Federal-Mogul in recent months
include:
    *  European Aftermarket Distribution System -- An online system through
which approved European distributors and wholesalers can order Federal-Mogul's
brand-name aftermarket products through the company's Web site,
http://www.federal-mogul.com .  Approved customers can use the system to check
product availability, place normal or urgent orders, or inquire about the
status of orders with a few simple mouse clicks.  Products that can be ordered
via the new Web-based system include Champion spark plugs, Payen gaskets and
seals, Ferodo brake friction materials, Glyco engine bearings, AE engine
parts, Goetze piston rings and gaskets, TRW chassis parts and Nural pistons.
The new system is not designed for direct sales to consumers.  "Many
distributors find the electronic system more efficient than placing orders by
telephone or fax," said Chris Goodwin, general manager - marketing, European
aftermarket, Federal-Mogul.
    *  Federal-Mogul Supplier Network -- A global purchasing Web application
allowing high-volume Federal-Mogul suppliers to interact directly with the
company through http://www.federal-mogul.com.  Federal-Mogul suppliers using the
password-protected system can check their quality and delivery performance,
report and track cost-saving suggestions, review key purchasing policies and
procedures, and give and receive feedback online.
    *  Web site enhancements -- An expansion of the company's Web site,
http://www.federal-mogul.com, allowing aftermarket customers to access enhanced brand
and product information by clicking on a brand logo, country or product line
link.  The site also features updated graphics, company news, investment
information, original equipment product links, customer service information
and brand merchandise.  Federal-Mogul's Web site received a favorable "four
mice" rating from Le Journal de L'Automobile -- the highest of any site among
parts/systems manufacturers.
    *  fmarketplace -- An intranet application for Federal-Mogul employees,
through which Federal-Mogul manufacturing and engineering facilities can
acquire surplus capital equipment, tools and materials from other company
sites online.  This helps eliminate the purchase of new items that may exist
underutilized within the company.  Items ranging from fork lifts to office
furniture to printers are typically listed on fmarketplace.
    Federal-Mogul is developing additional customer-focused applications aimed
at serving its North American aftermarket distributors and retailers.