Toledo, Ohio - Dana Corporation announced that it has signed a letter of intent to participate in Covisint, the new business-to-business Internet trade exchange being planned by several major automakers.

Dana Vice President and Director of e-Business Jim Woodward said the company expects to use Covisint as its primary trade exchange for transactions with original equipment customers and suppliers. "Along with inherently supporting the activities of our customers, Dana's participation in Covisint will complement our internal e-procurement initiatives," Woodward said. He added that this move is consistent with the Internet technology study group formed with other tier one suppliers in April.

"Covisint represents another important tool in Dana's ongoing effort to eliminate redundancy in the purchasing arena," Woodward added. "We anticipate that the exchange will offer tremendous opportunities to Dana in the areas of integration and collaboration -- two elements that will be critical to our future." 

As one of the world's largest suppliers to vehicle manufacturers, Dana purchases approximately $8 billion in goods and services annually and has previously announced the goal of a cumulative $1 billion in cost reductions relating to purchasing activities over the next four years. 

Formed by Ford Motor Co., General Motors Corp., DaimlerChrysler AG, Renault S.A., and Nissan Motor Co., Ltd., the Covisint exchange will be established as an independent company. Covisint will utilize a single global portal to eliminate redundancies and burden from suppliers with the end goals being lower costs, more streamlined business practices, and increased efficiencies for the entire industry. 

(July 06, 2000)