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"Thriving in this slow recovery feeling like recession is a strategy and performance challenge. Managing cash is important across the value chain - taking care of working capital and preserving the top line are key."



Shifting gears in automotive industry

The global automotive industry used to produce more than 60 million vehicles annually. Although this figure has reduced to 50 million during recent turmoil, it still accounts for 5% of the world’s manufacturing employment. However, the competitive landscape is getting more congested. The kind of challenges now facing the automotive market have not been seen for over 20 years. The industry will change forever - in terms of leading markets as well as major players.

Previously automotive manufacturers had competed fiercely against each other, and had rigid structures and were protected by high market entry barriers. With Asian car makers aggressively growing market share, and emerging markets challenging traditional cost structures, suppliers and manufacturers needed to continually focus on lean and cost-effective processes and products They also had to focus on industry collaboration - while still delivering breakthrough innovation. Now they face a different kind of threat from new players - requiring new strategic alignments and an ability to capture value much further downstream than before.

PA Consulting Group's manufacturing teams have sound industry knowledge - over 70% of the consultants have worked for car makers, Tier1 and Tier2 suppliers around the world. They understand the automotive sector and are able to bring deep insight and practical experience to assignments.

Our experience includes helping Fiat, Magna, Inalfa and German car manufacturers transform their organisations from R&D and purchasing to operations and sales. We provided services such as cost optimisation across the supply chain; supplier relationship management; manufacturing strategy and relocation as well as sales and after sales process efficiency.

To start the dialogue about our insights in strategies to outperform competition in the next decade, please contact us now.

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