IBM and Mercedes-Benz Partner for Tuscaloosa Plant

Strategic Insights -

IBM and Mercedes-Benz U.S. International announced a 12-year contract for the design, integration, and management of the information technology infrastructure for Mercedes-Benz's new U.S. passenger vehicle manufacturing plant in Tuscaloosa County, Alabama. The contract involves the installation and integration of computer hardware, software, and information technology systems, with IBM's Integrated Systems Solutions Corporation (ISSC) taking over service and day-to-day operations upon acceptance. This partnership marks a significant milestone in Mercedes-Benz's expansion into the U.S. market, with plans to build 60,000 to 70,000 vehicles per year and employ up to 1,500 workers by the end of the decade.

Key Takeaways:

  • IBM will provide a 12-year contract for the design, integration, and management of the information technology infrastructure for Mercedes-Benz's new U.S. passenger vehicle manufacturing plant in Tuscaloosa County, Alabama.
  • The contract involves the installation and integration of computer hardware, software, and information technology systems for the new Mercedes-Benz facility.
  • IBM's Integrated Systems Solutions Corporation (ISSC) will take over service and day-to-day operations of the information technology infrastructure upon acceptance.
  • Mercedes-Benz plans to start production of all-activity vehicles in 1997, with an expected 60,000 to 70,000 vehicles per year and up to 1,500 workers employed by the end of the decade.
  • IBM will integrate several software programs, including Baan USA Inc.'s TRITON enterprise requirements planning package and three IBM packages: the IBM Zone Manager foreign trade zone management system, the CATIA CAD/CAM solution, and the Process Operations Management System (POMS) manufacturing execution system.
  • The partnership involves a broad range of skills and resources, including business process design, automotive production skills, enterprise resource planning, network design and management, and business process outsourcing.
  • IBM's U.S. Manufacturing Industry Solution Unit worked closely with Mercedes-Benz to develop a system that integrates suppliers, dealers, and customers into the supply chain management process.

Statistics:

  • 12-year contract between IBM and Mercedes-Benz for the design, integration, and management of the information technology infrastructure.
  • $1 million consulting contract awarded to IBM in 1993 for information technology planning and design of the plant.
  • 1,500 workers expected to be employed at the Mercedes-Benz plant by the end of the decade.
  • 60,000 to 70,000 vehicles per year expected to be produced at the Mercedes-Benz plant.
  • 1997: planned start of production of all-activity vehicles at the Mercedes-Benz plant.

Sources:

  • Business Wire, May 16, 1995
  • Trademark or registered trademark of International Business Machines Corporation (IBM)
  • Trademark or registered trademark of Baan USA, Inc. (TRITON)
  • Trademark or registered trademark of Dassault Systemes (CATIA)
  • Trademark or registered trademark of INCODE Corp. (Process Operations Management System, POMS)
  • IBM news releases are available on the internet, via the IBM Home Page at http://www.ibm.com
  • Gary Baker, Chris Huston Technology Solutions (212) 696-2000 or gbaker@tsipr.com
  • J.R. (Ralph) Hammock IBM Media Relations (914) 642-5463