FreeMarkets to Buy Auto Parts Exchange From Covisint a Joint Venture Of the "Big Three'...How Many $$$$Millions did they lose this time?

THERE ARE 275 COVISINT STORIES IN TACH'S LIBRARY---READ THEM AND MAKE UP YOUR OWN MINDS- JUST TYPE COVISINT INTO ANY TACH SEARCH BOX.

Snides Remarks:First of all who makes a business announcement you are proud of New Years Eve? Once again the stockholders of the big three get screwed because of mis-management...when Covisint was announced, absolutly everyone other than the boobs that put lots of other people's money into the mis-venture was sure that it would fail. Is every body smart and the Big three guys stupid or just greedy? Everyone I talked with was 100% sure it would take bottom line $$$bucks from car sales, and straight into the toilet. How much capital went into this crappy(I am being Kind)idea? Did the suits invest any of their own money?...and how many will lose their jobs because of this blunder?

By the way as of 7:56 EST December 31, 2003; the www.covisint.com web site was still just business as usual I guess nobody bothered to tell the Webmaster that this story was breaking...dumb asses!!! Stay tuned folks.

TACH Editors Note 6/28/2002: "A bad Idea Is A Bad Idea!
A bad idea is a bad idea and the folks here at TACH just couldn't believe that money was being invested in Covisint, would the big three have invested in a joint buying service before the Internet...of course not, so why invest millions in a bad cyber idea?" PITTSBURGH December 31, 2003; The AP reported that FreeMarkets Inc., an operator of online auctions, has agreed to acquire the auction business of Covisint LLC, which was founded by the Big Three auto makers to help them do business online with their suppliers.

Terms weren't disclosed in a joint press release Wednesday.

Under the agreement expected to close in early January, Covisint will transfer its customer contracts for auctions to Pittsburgh-based FreeMarkets. The contracts provide committed revenue over the next three years.

FreeMarkets will provide sourcing services to automakers DaimlerChrysler AG, General Motors Corp. and Ford Motor Co. under long-term agreements. The company might also provide its technology to manufacturers such as Mitsubishi, Nissan, Renault, PSA Peugeot, Fiat and other Covisint auction services customers.

The Big Three automakers and Nissan created Covisint in 2000 as a supply cooperative. It was originally projected to broker the sale of $240 billion worth of parts every year, generating an estimated $5 billion in revenue.

But due largely to competition from other auction sites and reluctance on the part of some suppliers to work through Covisint, the company has fallen well short of that mark. It has helped hold auctions for $120 billion in goods since the business kicked off in January 2001.

FreeMarkets will absorb 24 Covisint employees into its work force of about 1,000.

As of late October, FreeMarkets projected 2003 revenue of $151 million to $153 million.

Shares of FreeMarkets closed Wednesday at $6.70, up 38 cents, or 6 percent, on the Nasdaq Stock Market.