Cuts and Cash for Covisint

Covisint LLC Chairman, President and CEO Kevin English continues his mission to turn the auto industry's private exchange into a lean, customer-focused enterprise that is agile, profitable and competitive on price.

He carried his plan one step further in April by eliminating 25 staff positions and 25 contract jobs at Covisint, while adding 14 sales positions and reorganizing the company into two strategic units.

Covisint also is receiving additional equity funding from the parent companies that own the exchange — Detroit's Big Three plus Renault SA, Nissan Motor Co. Ltd. and PSA Peugeot Citroen.

English says the amounts are “modest compared to the original investment” in the private company, adding that Covisint has reduced its expenses 21% from 2001, and that the company is poised to post a profit in the year's fourth quarter.

In an interview with WAW a day after the restructuring was announced, English says the cash infusion from the auto makers shows their support.

“As they're writing down a lot of investments they made in other e-initiatives in other companies, the one that stands out, that they're willing to keep putting money into, is Covisint, because they're seeing the benefit,” he says. “They're seeing that we're on the cusp of greatness here.”