Watch For Big Transactions, Says Covisint's New Chief.(INTERNET & TECHNOLOGY)(Q & A)

Byline: Murray Coleman

Creating the world's largest online business-to-business exchange has proved to be quite a challenge for America's automakers.

Last year, Detroit's Big Three -- Ford Motor Co., General Motors Corp. and DaimlerChrysler AG -- agreed to work together to build a joint marketplace on the Internet.

They figured to pool $300 billion a year in combined spending to streamline procurement and drive down prices of their suppliers.

The original partners soon brought rivals Renault SA and Nissan Motors Co. into the exchange, which was named Covisint LLC. Added to the group were software makers Commerce One Inc. and Oracle Corp.

Critics are showing little restraint in voicing pessimism about Covisint's prospects. Published reports estimate that the automakers have already pumped more than $200 million into building the marketplace, with little to show in the way of returns.

But in June, European automaker PSA Peugeot Citroen Group joined Covisint with plans to bring along much of its more than $22 billion in yearly procurement.