Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
    • 2022 Women Breaking the Mold
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
February 21, 2000 01:00 AM

E-commerce offers threat, promise for auto suppliers

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Suppliers to the automotive OEMs have two choices concerning the auto companies' e-commerce bandwagon: Join now, or fail later. Like it or not, e-commerce is arriving for automotive suppliers. And some of it isn't pretty.

    Consider this quote from Raymond W. Pollard, director of sales and marketing for General Motors Corp.'s TradeXchange, a suite of Internet-based business-to-business trade sites. "E-commerce is going to turn everybody's beloved engineered product ... into a commodity."

    Now there's a statement sure to chill any rubber product maker's heart. Pour your energy, your money and your soul into creating something that fits all the auto industry's rigid demands, and in the end all you have is a commodity, as far as the auto OEMs are concerned. So much for self-esteem—let alone survival—when a competitor in a low-labor cost nation can beat your price in an online auction.

    E-commerce does offer some advantages for automotive suppliers. The Internet can reduce costs by enhancing communication, from order entry to design transfer to inventory and payment tracking. Auto suppliers should embrace the Internet for that matter alone.

    That's the promise. The threat is that online auctions reduce suppliers to the one common denominator—price. If it takes a year, if it takes five years, e-commerce will happen for all automotive suppliers. Any company that wants to compete in the automotive sector needs to get on board now, because the auto OEMs will leave you behind with nary a goodbye.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Updated: Goodyear to close 'redundant' Cooper Tire warehouses
    2
    Danfoss Power Solutions, former Eaton Hydraulics see success a year after purchase
    3
    Hexpol Silicones nearly triples space with move to Akron facility
    4
    Kultevat looks to fill gap in domestic NR source with TKS dandelion
    5
    Cooper-Standard shows improvements amid headwinds
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
        • 2022 Women Breaking the Mold
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION