Explanation for the dropoff
Ford, GM & DaimlerChrysler agreed to create an integrated b2b supplier network, with Commerce One (CMRC) and Oracle (ORCL) taking the lead. I2 is not mentioned and the market overreacted as usual. CMRC up 33, ORCL up 7. BTW, last trade I saw was at 162 1/8 -- this sale won't last long!
FWIW, I see that the timestamp on this strory is 13:50, but the market started to trim I2 at around 12:50.
-Tom
FORD MOTOR CO - Ford, General Motors and DaimlerChrysler Create World's Largest- Internet-Based Virtual Marketplace
Fri Feb 25 13:50:00 EST 2000
Toronto, Ontario, Feb. 25, 2000 (Market News Publishing via COMTEX) -- General
Motors Corporation, Ford Motor Company and DaimlerChrysler jointly announced
that they are planning to combine their efforts to form a business-to-business
integrated supplier exchange through a single global portal. This venture will
create the world's largest virtual marketplace. The new enterprise will offer
open participation to all auto manufacturers around the world and their
respective market of suppliers, partners and dealers. Eventually, this
marketplace could be expanded to encompass other industries.
GM, Ford and DaimlerChrysler plan to have equal ownership in the new venture
which would operate as a separate business independent of the three automakers.
Ford, GM and DaimlerChrysler expect to reach a definitive agreement for the
venture in the first quarter, subject to appropriate governmental and other
approvals. Until then, all services currently associated with the existing
exchanges will continue to be offered. These include catalog purchasing, bidding
and price quotes, on-line sourcing and auctions. In addition, supply chain
management functions such as capacity planning, demand forecasting, production
planning, supply chain transaction automation, financial services, payment and
logistics will continue and be expanded.
Ford President and Chief Executive Officer Jacques A. Nasser said, 'To-day's
announcement is another example of how the Internet is transforming every piece
of our company and our industry. It's exciting, it's dramatic, and it's only
going to accelerate. We'll push this transformation even further to bring
sustainable benefits to our customers, our suppliers, and our dealers.'
'As we continued to build our separate exchange sites, we quickly realized
traditional, individual stand-alone models weren't the winning strategy for us,
our industry, our suppliers and, ultimately, our customers,' said G. Richard
Wagoner, Jr., president and chief operating officer, General Motors. 'By joining
together, we can further increase the pace of implementation, thereby
accelerating the benefits to everyone involved. We are excited about the
opportunity to build on what each of us started separately and create the best
trading exchange in the world.'
DaimlerChrysler Chairman Juergen Schrempp said, 'DaimlerChrysler's plan for a
separate exchange came together with Ford's and GM's. We bring a global
presence, large volume and excellent supplier relationships to the new venture.'
Ford Motor Company selected Oracle Corporation (Nasdaq: ORCL) as its technology
partner for Auto-xchange, an on-line global network open to the entire auto
industry that offers on-line procurement and trading as well as the capability
for real-time supply chain management and collaborative product innovation.
GM selected Commerce One (Nasdaq: CMRC) as its technology partner for its
TradeXchange, a global Internet-based system designed to strengthen the entire
supply chain and allow purchasing functions through catalogs, auctions and bid
quotations. Both Auto-xchange and TradeXchange are already operational.
'We've demonstrated that we can compete effectively in the e-world,' said Harold
R. Kutner, group vice president of GM Worldwide Purchasing. 'Not only is it
unprecedented for GM, Ford and DaimlerChrysler to come together to form this
type of joint venture, but it's also the largest Internet business ever created.
Nobody will be better. Nobody will be faster. Nobody will offer more to everyone
involved.'
'Ford, GM and DaimlerChrysler welcome the participation of other automotive
manufacturers and suppliers in this exchange,' said Brian Kelley, Ford Motor
Company vice president and president of Ford's ConsumerConnect. 'This
combination will allow suppliers to channel their efforts through a single
exchange,' he added, 'and will reduce overall inventories, develop industry
standards and provide productivity to all participants.'
The new venture is expected to be powered by Oracle and Commerce One. Both
technology partners have collaborated on a compatible architecture to bring
best-of-breed offerings to the venture. Both technology partners are expected to
continue to have economic interests in the new venture. |
