Tired of being ridiculed as corporate Luddites at the dawn of the digital era, leaders of the U.S. auto industry saw an opportunity to harness the power of the Internet and create an online company that Wall Street would value as a technology player. In one bold stroke, the creation of a massive online business exchange would let the Big Three automakers--General Motors, Ford Motor and DaimlerChrysler--catch up with the rest of the world.

The system that has become known as Covisint--standing for Cooperation, Vision and Integration--could do better than even the score: Founders envisioned it as an Internet leader, a gigantic eBay-like bidding and purchasing system for every business that sells products to the sprawling car industry, from paper to petroleum.

Or so they thought. Covisint has taken on the characteristics of a curse ever since it was created, having experienced nearly every kind of problem imaginable. Widely viewed as the ultimate test of all business-to-business exchanges because of the automobile market's size and complexity, the experiment is providing both inspiration and a harsh view of reality for the many other industries venturing into online marketplaces.

Challenges: Detroit reinvents the wheel
At first, it made perfect sense: a central bazaar that simplified transactions for thousands of companies. But barely a few weeks after it was created, Covisint became mired in internecine politics, foreign opposition, federal scrutiny and sniping from within its own ranks.

Technology: Wiring a brick-and-mortar world
Few argue that an online exchange to streamline transactions is an unworthy goal. In a business that has been historically slow to accept change, however, a venture as complicated as Covisint may be as adoptable as electricity in the Stone Age.

Culture: Fear of the unknown may be the worst
Dealing with threats is a way of life in the U.S. auto industry, from angry work forces to international competition or cross-town rivals--and technology is no different. Overcoming this bunker mentality may be one of Covisint's biggest challenges.

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