SOUTHFIELD, MI -- Covisint officials are hopping mad about an anonymous e-mail that has been making the rounds to the automotive press in Detroit claiming the auto industry’s business-to-business Internet exchange is laying off employees in the face of “significant cash flow and budgetary problems.”
Dan Jankowski, Covisint’s senior vice president of global communications, adamantly denies that his company is cutting headcount. Instead, he says Covisint is adding staff.
As for cash flow problems, that speculation is not new. Jankowski says Covisint is consulting with banks as the company prepares to go public, perhaps in a year. “But we’re not out there looking for money,” he says.
Just two weeks ago, Covisint CEO Kevin English said the company should be profitable this year, although he admits that losses in 2001 were significant.See related story
Covisint is a private company, so it does not report its financial earnings.Corp., DaimlerChrysler AG and Motor Co. created Covisint two years ago and have since been joined by Motor Co. Ltd., Renault SA, PSA Peugeot Citroen and technology partners Commerce One and Oracle.
Last week, Covisint announced it will keep its headquarters in Southfield, MI. Jankowski suggests such a move would not be possible if Covisint were in dire financial straits.See related story