On February 25, 2000, General Motors, Ford Motor Company, and DaimlerChrysler jointly announced that they were planning to combine their efforts to form Covisint, a single global portal providing an integrated business-to-business supplier exchange.
Then in April that same year, Covisint received even greater support as Nissan of Japan and Renault SA of France joined the Covisint partnership. Currently, Nissan and Renault are helping plan the development of Asian and European operations.
But last week, Volkswagen bucked the trend when it announced that it had awarded eBreviate a multi-year contract to install its auction software within Volkswagen’s information technology infrastructure to enable the auto maker to create a complete, self-service, global auction model.
The contract covers technology, maintenance and installation of eBreviate’s auction software, and encompasses all of VW’s operating units and brands, including VW, Audi, Seat, Skoda, VW de Mexico, VW Brazil and others.
The agreement is part of VW’s strategy to build a B2B automotive marketplace itself. Auctions will be conducted at VW sites in Brazil, The Czech Republic, Germany, Mexico and Spain, and will be supported in multiple languages and currencies.
The new agreement extends VW’s use of eBreviate Internet Negotiation technology beyond the 270 auctions already completed to date.
In the last eight months, VW has negotiated more than $5.2 billion of direct and indirect materials and services using eBreviate’s auction technology. Materials auctioned to date range from hubcaps and water pumps to aluminium and fax machines.