PARIS (May 22, 5:45 p.m. EDT) — European automaker PSA Peugeot Citr"en Group has joined Covisint LLC's online exchange platform, and also is setting up a separate portal for its suppliers.
The Paris-based company is the second primarily European carmaker to join Covisint. It will buy a stake in the business-to-business exchange program and will have a seat on the Covisint Europe board as it uses the system for electronic purchasing.
But beyond that, it will work separately to establish a private portal for its suppliers. Through that system, the companies can access information on procurement and quality rules, collaborate on designs and participate in private electronic discussions on topics such as invoice tracking, marketing and performance.
PSA Peugeot plans to have 150 suppliers connected to the portal by 2002. It spends about 25.6 billion euros ($22.1 billion) buying components from 450 suppliers each year. About 20 percent of that supply base accounts for 50 percent of all purchasing.
The company plans to use the system to decrease design time for new products by allowing top suppliers to take part in the early development of new vehicles, the company announced May 22.
Covisint formed last year as an online purchasing portal for General Motors Corp., Ford Motor Co. and DaimlerChrysler AG. France's Renault VI and Japan's Nissan Motor Co. Ltd. also have joined as stakeholders in Covisint.