In January, the exchange introduced a board of directors made up of senior Detroit auto executives. Covisint founders envision the exchange as a central marketplace for parts auctions and project collaboration among as many as 40,000 companies doing business with the automobile industry, from paper clip manufacturers to multinational chemical conglomerates. While Covisint founders expected the exchange to be up and running within a matter of months, technological and administrative complexity have kept the exchange on the sidelines. Early fears of antitrust violations hampered progress and slowed the search for a permanent CEO, and supplier partners have been hesitant to join the exchange because of competitive concerns, analysts said. Meanwhile, Covisint has been burning through millions of dollars per month, according to analyst estimates.
Timing is everything.
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