GM Buys $96 Billion In Materials Via CovisintGM Buys $96 Billion In Materials Via Covisint

General Motors Corp. has used Covisint, the giant auto exchange, to buy $96 billion worth of raw materials and parts for future auto models, bringing the value of transactions managed this year by Covisint to more than $129 billion.

GM joins DaimlerChrysler AG in pushing procurement of raw materials and future-model parts through the exchange. The previous largest transaction came in May, when DaimlerChrysler used the exchange to procure $3 billion worth of highly-engineered parts for future models.

Ford, which hasn't revealed the value of the transactions it has conducted on Covisint, says it has used the exchange to save $70 million, which it says is more than its initial investment in the exchange. The automaker says it expects to save $350 million this year.

AMR Research analyst Kevin Prouty says GM clearly has been the most aggressive among the Big Three in using Covisint, but all three automakers are showing they place a high priority on moving as many supply-chain transactions as possible through the exchange. Says Prouty, "Ford and GM are on the verge of completely restructuring their procurement operations around Covisint, and this is the shift that needs to happen."