Volkswagen to Build B-2-B Marketplace with IBM, i2, and Ariba


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Wolfsburg/Paris - 12 Apr 2000: -- Volkswagen, IBM, and the US software companies i2 Technologies and Ariba today announced that they have signed a memorandum of understanding creating a strategic partnership to build a global digital marketplace. By teaming with e-marketplace technology leaders, Volkswagen intends to increase the cost and speed efficiency of its complex global supply chain.

"With this initiative we are re-enforcing our current activities to optimize our business processes", commented Jens Neumann, member of VW's board responsible for Corporate Strategy, Legal, Treasury and Organization, on the objectives of the new alliance.

An important aspect of improving supply chain management is interactive transaction processing with suppliers. The Volkswagen e-market place will enable simpler ordering of groups of auto parts and other business supplies over the internet. These will include manufacturing parts, tools and office equipment.

"In certain cases, this can lead to savings of up to 50 % of supply chain costs" explained Fransisco Javier Garcia Sanz, VW board member for procurement, the advantages of the virtual market place.

"As businesses are extending their enterprise processes over the Internet and building emarketplaces to transform their supply chains and their customer and partner relationships, they are looking for leading edge technologies and long-term partners," said Mike Lawrie, General Manager, IBM Europe, Middle East and Africa. "Volkswagen, along with its subsidiaries, has one of the largest and most complex network of suppliers and partners of any industry, and IBM is committed to helping VW take full advantage of e-business technology to build what will be one of thelargest automotive emarketplace in the world."

"Ariba is pleased to work with automotive industry leader, Volkswagen, along with IBM and i2-our leading technology partners," said Thomas Koenen, regional manager of central Europe at Ariba. "With our combined technology solution, we look forward to bringing significant value to Volkswagen in their efforts to build one of the largest and most comprehensive e-markets, creating a broad global standard for the automotive supply chain."

As a result of this project, Volkswagen will not join the recently-announced internet alliance of the three American auto-manufacturers.

"With IBM, i2 and Ariba, we have engaged the leading providers of e-market and supply chain management technologies on our side," reasoned Neuman on the choice of his partners. "With this, Volkswagen sees its chance to create a broad European standard. Our e-market is open to everybody."

The Volkswagen Group is the largest automobile manufacturer in Europe and ranks fourth in the world. The company is a global player, with 42 production facilities in 11 different European countries and in a further 8 countries in America, Asia and Africa. The Group offers its products in more than 150 countries and holds a market share of more than eleven percent in the world car market. In Western Europe almost every fifth car originates from the Volkswagen Group. About 300,000 employees produce more than 20.000 vehicles around the globe every day. The Volkswagen Group consists of nine independent brands from six European countries: Audi, Bentley, Bugatti, Lamborghini, Rolls Royce, Seat, Skoda, VW Commercial Vehicles and Volkswagen Passenger Cars.

With 1999 revenue of more than $87 billion, IBM is the world's largest information technology provider (hardware, software and services). The company has more than 300,000 employees and does business in more than 160 countries. IBM is a world leader in e-procurement. In 1999, the company procured $13 billion in goods and services on the Web. The effort to Web-enable the company's procurement systems, which began in 1994, has to date resulted in savings of $6 billion. Further information about IBM can be found at http://www.ibm.com.

Ariba, Inc. is the leading provider of B2B services and solutions to leading companies around the world, including more than 15 of the Fortune 100. The company delivers an open, end-to-end, best-of-breed platform of interoperable solutions to build B2B marketplaces, manage corporate purchasing, and electronically enable suppliers on the Internet. Together, Ariba's Internet services and software integrate commerce processes of B2B marketplaces, buyers, suppliers and commerce service providers to create global economies of scale for all participants. Ariba can be contacted in the U.S. at 650-930-6200 or at http://www.ariba.com.

i2 is the leading global provider of intelligent eBusiness solutions. Founded in 1988, i2's vision is to add $50 billion of value for its customers by the year 2005. i2 is headquartered in Dallas, TX, has approximately 3,000 employees and maintains offices worldwide. For additional information, visit i2 at http://www.i2.com.

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