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!