DaimlerChrysler to track car deliveries via the Internet

AUBURN HILLS, Mich. (Aug. 2, 2001) — DaimlerChrysler Corp. and Union Pacific said they will form a new company that will use the Internet to track vehicle shipments from assembly plants to dealers.

The company, Insight Network Logistics, will be a wholly-owned subsidiary of Union Pacific Corp., parent company of Union Pacific Railroad. In addition to reducing the order-to-delivery time of Chrysler Group products to consumers, the new venture will be dedicated to increasing network efficiency and reducing logistics costs across the Chrysler Group’s North America supply chain, Union Pacific said in a press release.

The result will be a savings target for Chrysler of approximately $280 million US over the next six years. Chrysler is targeting a 25% reduction in vehicle delivery time within 12 months. Chrysler Group’s present vehicle delivery time averages 12 days from assembly plant to dealership.

Insight Network Logistics will be based in the Detroit area and begin operations in the fourth quarter of this year. The company’s Detroit-area operations will consist of a network control center that will employ 20 people and use Union Pacific’s “VinVision” technology to track shipments of Chrysler Group vehicles via the Internet from assembly plant to dealers. Roland Fortner, a 20-year executive of Union Pacific Railroad, has been named general manager of Insight.

Currently, the Chrysler Group delivers vehicles to market through a transportation network of rail and over-the-road carriers which involves significant coordination and data exchange among many logistics providers.