In another move reflecting the determination of leading car manufacturers to control aftermarket, procurement and vehicle sales e-commerce, Detroit`s "big three" car makers are setting up an online exchange for dealers, parts manufacturers and service suppliers.
Ford`s automotive consumer services group, DaimlerChrysler`s Mopar parts division and General Motors` service parts operations are being joined by Bell & Howell, the optical products company that in recent years has diversified into Internet-based IT services.
Chuck Rotuno, senior vice-president of global automotive publishing at Bell & Howell Publishing Services will be president and CEO of the new virtual marketplace.
Franchise dealers have already started pilot testing the exchange and it is expected the joint venture will begin operating in North America within a few weeks, before being rolled out internationally. Isuzu, Jaguar, Land Rover, Mazda, Saab, Saturn, Subaru and Volvo are among other car and truck manufacturers expected to be early users of the exchange.
Many ventures are already trying to use the Internet to break into the profitable automotive parts retailing sector, but the big car manufacturers feel that they have the clout to dominate, pulling both dealers and suppliers away from rival ventures.
Analysts are predicting that, like the Covisint procurement exchange already set up by the the big three and other motor manufacturers, the new Web venture will come to dominate the industry and squeeze out smaller players. The original equipment manufacturers want to "own" or control as much of the vehicle business as possible - from raw materials procurement right through to the aftermarket, scrapping and recycling activities.
"This venture is different for two reasons," says General Motors` vice-president of service parts operations John Smith. "First, it represents the three largest vehicle manufacturers in the US and the leading provider of automotive parts catalogs. These players have resources and their respective existing dealer and customer bases to assure success.
"Second, we have the bricks to go with the clicks. We have OE parts, up-to-date original equipment catalog data, original equipment manufacturer service information and the largest dealer network in the world to service the automotive repair aftermarket. No other players have such extensive assets."
CollisionLink, the Bell & Howell system that automates parts ordering by dealers and panelbeaters, will be the first service on the new exchange.
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