cost-cutting at erstaunliche autos tompkins & kosters remco westerbeek thijmen van der marel...
TRANSCRIPT
Cost-cutting at Erstaunliche Autos
Tompkins & Kosters
Remco WesterbeekThijmen van der Marel
12-01-2012
Table of contents
• About Tompkins & Kosters
• Main problems & recommendations
• Forecast
Introduction | Improvements & recommendations | Conclusion
Tompkins & Kosters
• Financial consultants
• Founded in 1953
• Experience in the car branch
Introduction |Improvements & recommendations | Conclusion
Main problems
• Low productivity
• High labor costs
• High supplier costs
• Not enough focus on non-European countries: China
Introduction | Improvements & recommendations | Conclusion
Sales Labor costs
Supplier costs
020406080
100120140
90
20 15
120
1 1
CurrentImproved
€ 30bn
€ 19bn
€ 14bn Savings in improved salesLabor costsSuppliers costs
Cost-cutting programmefollowing our 5-year plan
Introduction | Improvements & recommendations | Conclusion
Moving to China
Germany Belgium China0
50,000
100,000
150,000
200,000
250,000
300,000
Annual productivity rates
Germany Belgium China0
10
20
30
40
50
60
70
Average hourly pay rates for assembly-line workers
In Euros Cars per year
Introduction | Improvements & recommendations | Conclusion
Supplier costs
Because of the move to China, the costs of the suppliers will be significantly lower, simply because the suppliers ask lower prices, as a result of low labor costs and cheap raw materials in China.
Introduction | Improvements & recommendations | Conclusion
Focus on new markets
• Currently overly focused on Europe
• Emerging markets: China
• Adapt car models to the relatively poor population
• Engage in a joint venture with a Chinese company to secure market knowledge
Introduction | Improvements & recommendations | Conclusion
Productivity forecast
2013 2014 2015 2016 20170
50,000
100,000
150,000
200,000
250,000
300,000Cars produced per year
Cars produced per year
Introduction | Improvements & recommendations | Conclusion
Conclusion• Move manufacturing centres from Belgium to
China
• This move causes lower labor costs, higher productivity and lower supplier costs
• A focus on new markets, such as China, will cause significantly higher sales, due to the higher productivity and larger market
Introduction | Improvements & recommendations | Conclusion
Thanks for your attention!
Are there any questions?Tompkins & Kosters
Remco WesterbeekThijmen van der Marel
12-01-2012