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Ford set to announce e-commerce alliance

By Reuters
New York, 02 Feb 2000

No. 2 automaker Ford Motor said Tuesday it would unveil a new electronic commerce venture, believed to involve United Parcel Service, the world`s biggest package delivery group.

Ford and UPS issued separate announcements about a news conference Wednesday, listing the same telephone number for reporters to call. In its advisory, UPS said it would announce a large-scale alliance with a "major auto manufacturer."

The companies declined to provide further details. The news conference is scheduled for 8:30 a.m.

"It is going to have a significant effect on Ford`s dealers and customers," said Ford spokeswoman Roseanne Cerra.

UPS said the alliance would involve its UPS Logistics Group. Formed in 1995, the wholly owned subsidiary of UPS tracks the movement of goods along with funds and information with the goal of reducing inventory costs and increasing product delivery.

Ford, along with other automakers, has been aggressively pushing into electronic commerce initiatives as the Internet becomes a more important avenue to reach consumers and manage the automotive supply chain.

UPS said last month Internet business contributed to all of its delivery services last year, helping lift its fourth quarter profits 37.1%.

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