The company realized a 12-15% cost savings ratio in G&A expenses.
The steadily rising costs for this automaker were due, in part, to inefficient and oversized support functions. The company also expected additional complexity and costs related to its ambitious growth strategy. It felt an urgent need to act, but that need didn’t resonate with employees, who felt that the company’s strong market position was a sign that all was well.
To address these issues and streamline support functions, the OEM worked with BCG to create a holistic lean cost optimization program. The project had four main goals:
With BCG’s help, the auto manufacturer realized significantly lower costs and lasting impact throughout the organization.