Leading Global Supplier Among First to Join New Venture
Meritor Automotive Inc. (NYSE: MRA) today announced it intends to participate in the planned global Internet-based business-to-business communication system General Motors, Ford, DaimlerChrysler, Renault and Nissan are forming, pending all governmental and legal approvals of the new venture. The agreement marks Meritor as one of the first suppliers to announce its intention to join the new Internet Exchange.
Meritor will become a member of Covisint’s Customer Advisory Council. This will allow Meritor to actively participate in the development of the exchange.
Meritor Chairman and Chief Executive Officer, Larry D. Yost, said: “Being one of the first suppliers to join Covisint underscores our commitment to take the lead in e-business initiatives. This will allow Meritor to both communicate more efficiently in real-time with our own suppliers and transact business via the Web to improve the overall speed and efficiency of our supply chain. As a result, we anticipate enhanced revenue streams, reduced supply chain costs and compressed cycle times.
“In addition to making plans to join the Covisint exchange, we’re taking several other proactive steps to improve overall supply chain efficiency and speed. Among them is our participation in e-auctions for global procurement of maintenance, replacement and operational (MRO) and direct material. We believe the new planned Web exchange will offer tremendous opportunities in worldwide collaborative commerce, engineering and material supply management,” Yost said.
“Meritor’s commitment clearly represents a significant step forward in Covisint’s planning stages for the benefit of the entire automotive community,” said Gregory Mekjian, director of the GM TradeXchange and a member of the executive team planning Covisint. “We value the importance of gaining a better understanding of the needs and concerns of potential customers, and to ensure we’re receiving input throughout the development of the exchange.”
Officially named Covisint earlier this week, the new venture will be established as in independent company and will offer products and services designed to help auto makers and suppliers alike achieve unprecedented efficiencies throughout the supply chain. Currently, Commerce One and Oracle are the two primary technology providers to the planned venture. Covisint will integrate best-of-breed technologies to provide solutions for its customers.
Meritor, with 1999 sales of $4.5 billion, is a global supplier of a broad range of systems and components for commercial, specialty and light vehicle OEMs and the aftermarket. Meritor consists of two businesses: Heavy Vehicle Systems, a leading supplier of complete drivetrain systems and components for medium- and heavy-duty trucks, trailers and off-highway equipment and specialty vehicles, including military, bus coach, and fire and rescue; and Light Vehicle systems, a major supplier of roof, door, access control and suspension systems, and wheel products for passenger cars, light trucks and sport utility vehicles.
This news release contains statements relating to future results that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the company’s Securities and Exchange Commission filings.