DETROIT (June 2, 2000)—New-car dealers may realize savings of as much as 40 percent on goods and services by purchasing them through the new online exchange being developed by Ford Motor Co., General Motors Corp. and DaimlerChrysler A.G.
GM and Ford already have announced plans to involve their dealers in the exchange, while DaimlerChrysler is testing a separate online purchasing program for its dealers.
Dealers should experience a significant reduction "in the order of 30 to 40 percent" in the cost of products and services purchased on the joint exchange, said A. Alan Turfe, executive director of GM´s TradeXchange.
The exchange, which will be operating by the end of June, will allow suppliers, dealers and auto makers to buy parts and supplies through online catalogs posted there.
Dealers may even use the site´s auction capability to obtain quotes for services, said Alice Miles, president of Ford Business to Business, the ConsumerConnect unit overseeing Ford´s auto exchange.
Ford, GM and DaimlerChrysler on Feb. 25 announced they would jointly develop an online exchange for purchasing and communications with their suppliers and dealers. It will be operated as a separate business.