Volkswagen Snubs Covisint, Inks Deal With EDS

Associated Press' take on the VW B2B Initiative: "In an apparent snub of Detroit-based online auction cooperative Covisint LLC, Volkswagen AG has signed a deal that would increase its ability to carry out its own auctions. The German automaker said Wednesday it had signed a six-year agreement with eBreviate, a unit of Electronic Data Systems Corp. The Walnut Creek, Calif.-based eBreviate will provide software and technology, enabling Volkswagen to conduct auctions among parts suppliers for all of its brands worldwide including VW, Audi, and Skoda. The agreement extends the current deal under which 270 auctions were conducted and is worth "millions of dollars," according to Sarah Pfaff, executive vice president of sales, marketing and strategy at eBreviate. Pfaff said Volkswagen did not believe working within a system set up by U.S. automakers, called Covisint, would be "optimum" for Volkswagen."