Auto Industry Stalled On E-Business

Compiled ByDeborah Austin The automotive industry lags far behind others in e-business progress -- hampered by cultural, technological, and security issues -- says a recent global business-to-business e-commerce study by professional services firm KPMG. Lack of trust between suppliers and original equipment manufacturers (OEMs) and concerns about technology costs and e-business security are holding back progress. Also, many players are simply "waiting to see what the other guy does." Automotive chief executives must follow two tracks to achieve e-business success, says Brian Ambrose, national industry leader of KPMG's automotive practice: adopt an e-business vision that encompasses the entire value chain, and force change in their own organizations by instilling an e-business challenge that touches every employee. KMPG International is headquartered in Amsterdam, the Netherlands.