VW gives Covisint the cold shoulder

Volkswagen has snubbed automotive e-marketplace Covisint in a deal to increase the automotive company's number of internal online auctions.

The VW organisation, which includes brands such as Audi and Skoda has extended a deal with EDS company eBreviate. The group will use eBreviate's e-sourcing software to carry out auctions with suppliers for car parts.

The move is a blow for Covisint, which was founded by Ford, General Motors and DaimlerChrysler. The company also managed to entice Renault and Nissan to join up.

However, Dan Jankowski, VP of corporate communications for Covisint, hit back by saying that the move was more of a disappointment for the supplier community. He told the Associated Press: "It's a big industry. Volkswagen is one company."

Covisint runs on the Commerce One platform. Yesterday Commerce One announced that it had gained shareholder approvals in its move to become a holding company.

Consequently, the B2B software maker will now be able to retain its two per cent stake in the e-marketplace in return for handing over more than 14 million shares to Covisint founders.

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