GLOBAL online automotive exchange Covisint received a second major boost in as many weeks when parts and systems giant Visteon confirmed it would take part in the venture.
Covisint, which is being developed by a group of the world’s leading car manufacturers, recently overcame a major hurdle when it was given clearance to proceed by US regulatory authorities.
Within days, Visteon, formerly the components division of Ford, a founding member of Covisint, announced its backing for the e-marketplace.
The addition of Visteon, which reported annual revenues of around $20bn last year and spent $9bn on procurement, is a significant advance for Covisint, which could be operational in a few months.
In addition to Ford, the ex-change’s founders include General Motors, DaimlerChrylser and Renault/Nissan. News of the project initially met with only a cautious welcome from suppliers, who expressed concerned that manufacturers would use their huge collective buying power to squeeze thesupply chain.
However, Covisint can now add Visteon to a list of participating suppliers that also includes Delphi Automotive and Dana Corporation.
In a separate development, Delphi has taken an equity stake in TecCom, the European automotive aftermarket exchange.
TecCom is an online initiative by developed by TecDoc, the non-profit making organisation founded in 1994 by 24 leading automotive suppliers to standardise and catalogue the European parts market.
TecCom allows easier integration of the supply chain between manufacturers, distributors and repair shops. It offers electronic transactions and data search facilities.