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Transforming an Automotive Manufacturer

A North American auto manufacturer successfully repositions itself for long-term growth.

A North American auto manufacturer faced a series of daunting challenges, including a sharp decline in demand, significant cost increases due to new emissions standards, and the potential for a long-term slump.

BCG collaborated closely with the company to help guide it through a comprehensive three-year transformation process. The approach focused on multiple work streams, including fixed overhead and material cost reduction, revenue improvement, and manufacturing efficiency gains. Large-scale company transformation was designed to enable the organization to win in the medium term. The transformation focused on improving enablement, embedding cost reduction practices into the company’s culture and operations, tightening financial targets, facilitating workshops for idea generation, and designing robust tracking, reporting, and assessment systems.

A comprehensive three-year transformation resulted in a significant improvement in the company’s profitability, competitive market position, and speed to market.

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