Lear Corporation (NYSE: LEA) today confirmed that it has signed a letter of intent to join Covisint, the planned global Internet-based business-to-business communication exchange being formed by General Motors, Ford, DaimlerChrysler, Renault and Nissan, pending all governmental and legal approvals of the new venture.
Lear participated in the early stages of Covisint’s development as a supplier advisor to the Internet-based automotive marketplace and decided early on to use it as the primary exchange for conducting electronic transactions with customers and suppliers. Lear is one of the world’s largest suppliers, and purchases more than $8.5 billion worth of goods and services annually.
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“Joining Covisint demonstrates our commitment to be an industry leader in e-business initiatives,” said Kenneth L. Way, Lear Chairman and Chief Executive Officer. “Through our participation in Covisint, we’ll be able to develop the exchange to the benefit of the entire automotive industry, take waste out of the system and improve our ability to communicate with our customers and suppliers.”
According to executives at Covisint, having one of the largest automotive suppliers join the exchange validates the direction of the venture and highlights the potential benefits to the entire automotive industry. Customer input is critical during the development phase and active participation from Lear and other major partners will help ensure its success.
Officially named Covisint last month, the new venture will be established as an independent company and will offer products and services designed to help auto makers and suppliers alike achieve unprecedented efficiencies throughout the supply chain. Currently, Commerce One and Oracle are the two primary technology providers to the planned venture. Covisint will integrate best-of-breed technology to provide solutions for its customers.
Lear Corporation, a Fortune 150 company headquartered in Southfield, Michigan, USA, is one of the world’s largest automotive suppliers, with 1999 sales of $12.4 billion. The company’s world-class products are designed, engineered and manufactured by more than 120,000 employees in over 300 facilities located in 33 countries. Information about Lear and its products is available on the Internet at www.lear.com
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