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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 - PowerPoint PPT Presentation
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Cost-Cutting Package
Erstaunliche Autos
1.Current Situation2.Goals3.Cost-Cutting4.Productivity Forecast5.Action Plan
Outline
Production costs are 40% higher
Current Situation
• Increase productivity• Boosts profits by 4 billion euros• Cut costs by 7 billion euros• Increase competitiveness
Become one of the world leading car manufacturers
Goals
• Five-day week and standard salaries• Lean manufacturing• Process improvement
• Option A: Open a factory in India• Option B: Purchase spare parts from China
Cost-Cutting at EA
Age of employees
year 1 year 2 year 30
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
employees > 55employees < 55
Cost cutting plan
savings by im-proved sales
others 2bn.
reducing suppliers
costs2bn.
labour costs 1bn.
Goal: Reduce costs by 7 billion
saving in improved salesothersreducing suppliers costslabour costs
Year 1 Year 2 Year 3 Year 40
20
40
60
80
100
120Productivity
Producti...
Productivity Forecast
1) Implement lean production2) Reduce salaries3) Renegotiate prices with suppliers3) Reduce number of senior employees4) Job cuttings (If necessary)
7 Billion Euro savings are possible!
Action Plan
Thank you for your attention!
