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Erstaunliche Autos. Cost-Cutting Package. Outline. Current Situation Goals Cost-Cutting Productivity Forecast Action Plan. Current Situation. Production costs are 40% higher. Goals. Increase productivity Boosts profits by 4 billion euros Cut costs by 7 billion euros
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Erstaunliche Autos Cost-Cutting Package
Outline • Current Situation • Goals • Cost-Cutting • Productivity Forecast • Action Plan
Current Situation • Production costs are 40% higher
Goals • Increase productivity • Boosts profits by 4 billion euros • Cut costs by 7 billion euros • Increase competitiveness • Become one of the world leading car manufacturers
Cost-Cutting at EA • Five-day week and standard salaries • Lean manufacturing • Process improvement • Option A: Open a factory in India • Option B: Purchase spare parts from China
Action Plan • 1) Implement lean production • 2) Reduce salaries • 3) Renegotiate prices with suppliers • 3) Reduce number of senior employees • Job cuttings (If necessary) • 7 Billion Euro savings are possible!