Tire Manufacturers Launch Global E-Commerce Initiative

Autoparts Report, April 25, 2000

Six of the largest companies in the tire and rubber industry have agreed to form a global purchasing and procurement electronic marketplace system.

RubberNetwork.com will host a global business-to-business electronic exchange, which will include Continental AG, Cooper Tire & Rubber Co., Goodyear Tire & Rubber Co., Michelin SA, Pirelli SpA, and Sumitomo Corp. Total purchases by the tire and rubber industry represent more than $50 billion a year spent on raw materials, equipment, machinery, goods, and services.

The exchange will enable members to increase the efficiency of their operations and to achieve savings in the cost of doing business, Goodyear said in announcing the launch of the exchange. Each transaction will be protected by firewalls to ensure confidentiality of each member's business activities, it added.

The exchange will work closely with other exchanges, especially those associated with the auto industry. It will be open to all manufacturers and suppliers within the industry and is expected to be operating before the end of the year, Goodyear said.