Cisco to Take Stake in Auto Network

Leading Internet hardware maker Cisco Systems Inc. will take an equity stake in the Auto-xchange supplier network set up by Ford Motor Co. and software company Oracle Corp., the companies said. Ford is girding for a battle against a rival General Motors Corp. system. The companies would not disclose terms or time frame for the deal, under which Cisco will become the exclusive provider of networking equipment start-up kits to Ford’s 30,000 suppliers. The kits will let suppliers access the Internet site and begin conducting business immediately. The Auto-xchange site started live operation a week ago and has conducted auctions on a number of supplies directly or indirectly involved with Ford vehicle production. Ford and Oracle announced the formation of Auto-xchange in November to link Ford’s suppliers on the Internet and to provide a way for suppliers to participate earlier in Ford’s product development and manufacturing processes. The network also has the potential to become a revenue generator through fees charged to companies that use the system.