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...
![Page 1: Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline.](https://reader035.fdocuments.net/reader035/viewer/2022062619/5516f13555034603568b4adf/html5/thumbnails/1.jpg)
Cost-Cutting Package
Erstaunliche Autos
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1.Current Situation
2.Goals
3.Cost-Cutting
4.Productivity Forecast
5.Action Plan
Outline
![Page 3: Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline.](https://reader035.fdocuments.net/reader035/viewer/2022062619/5516f13555034603568b4adf/html5/thumbnails/3.jpg)
Production costs are 40% higher
Current Situation
![Page 4: Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline.](https://reader035.fdocuments.net/reader035/viewer/2022062619/5516f13555034603568b4adf/html5/thumbnails/4.jpg)
![Page 5: Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline.](https://reader035.fdocuments.net/reader035/viewer/2022062619/5516f13555034603568b4adf/html5/thumbnails/5.jpg)
![Page 6: Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline.](https://reader035.fdocuments.net/reader035/viewer/2022062619/5516f13555034603568b4adf/html5/thumbnails/6.jpg)
• 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
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• 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
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Age of employees
year 1 year 2 year 30
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
employees > 55
employees < 55
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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
![Page 10: Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline.](https://reader035.fdocuments.net/reader035/viewer/2022062619/5516f13555034603568b4adf/html5/thumbnails/10.jpg)
Year 1 Year 2 Year 3 Year 40
20
40
60
80
100
120
Productivity
Producti...
Productivity Forecast
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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
![Page 12: Cost-Cutting Package. 1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline.](https://reader035.fdocuments.net/reader035/viewer/2022062619/5516f13555034603568b4adf/html5/thumbnails/12.jpg)
Thank you for your attention!