In recent years, the development of benchmarking and cost-engineering capabilities in the automotive industry has improved transparency of product costs significantly. In some cases, it has enabled car manufacturers to achieve savings approaching one billion euros and to reduce product costs for individual models by up to 25%.
However, if these techniques can deliver such a clear advantage to automotive manufacturers, why aren’t they being adopted more widely? To date, only a few car makers and tier-one suppliers have been able to commit the additional capacity and investment required to develop these high-performing techniques. In addition, few of the currently available cost-engineering functions can deliver savings on models already under development while continuously increasing technology and benchmarking activities and achieving 100% cost transparency.