Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action...
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Transcript of Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action...
Cost-Cutting Package
Erstaunliche Autos
1.Current Situation
2.Goals
3.Cost-Cutting
4.Productivity Forecast
5.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 > 55
employees < 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 sales
others
reducing suppliers costs
labour costs
Year 1 Year 2 Year 3 Year 40
20
40
60
80
100
120
Productivity
Producti...
Productivity Forecast
1) Implement lean production
2) Reduce salaries
3) Renegotiate prices with suppliers
3) Reduce number of senior employees
4) Job cuttings (If necessary)
7 Billion Euro savings are possible!
Action Plan
Thank you for your attention!