Business via the Internet

E-business may not be the cure-all as originally perceived a few years ago, but it does have its place in helping automotive OEMs and suppliers achieve their supply-chain goals.

A study released in the fall of 2001 by IDC, an advisory firm on e-business and technology, and sponsored by eTranslate, a globalization software company, found that despite a slowing worldwide economy, international B2B e-commerce is expected to experience a 76% year-to-year growth from 2000 to 2005, growing to $2.8 trillion. “Even in this economic downturn, we are seeing many companies continue to develop their Web globalization strategies,” said Janet Heppner, CEO of eTranslate. “Moving forward in these tough economic conditions is the only way to gain an advantage over their competitors.”

Within the automotive industry, there have been reports that e-business enthusiasm has cooled recently as automakers and their suppliers discover that the benefits may not be as extensive as originally perceived. Though this may be true to some extent, e-business initiatives are still a major priority at many automotive companies as they seek a competitive advantage. “Despite some reports, e-commerce is alive and well at Ford,” said Karen Francis, Vice President, Ford Motor Co., and President and CEO, ConsumerConnect, in a January speech. “In fact, e-commerce is evolving into its next stage of a very long life-evolving into a tool we use to support the basics of our car and truck business and allowing unprecedented internal and external communication.”