PA Consulting Group worked with Fiat Group Automobiles to support a cost-reduction programme for an annual purchasing volumes of more than €1 billion. Fiat already aimed to reduce costs by several hundred euros per car, to meet a total annual cost reduction target above €100 million by the year end. PA accelerated this programme by adopting a strong methodology, initially focused on four models crucial to Fiat’s future success: Croma, Grande Punto, Alfa Romeo 159, Ducato.
This programme helped Fiat achieve its cost reduction objectives. The value of viable cost-saving ideas for the four models had trebled to over €100 million per annum. Of this, €80 million was realised in the first year.
Carlo Bassotto, Engineering and Design, Fiat Group Automobiles said, “PA worked with the integrated multi-disciplined Fiat teams to significantly improve our way of working. In particular, the structured dismantling, evaluation and benchmarking of Fiat cars with competitors’ identified major improvement opportunities. It laid the groundwork for a tremendous increase in idea generation, evaluation and implementation - for both current and future models.”
“The impact on Fiat goes well beyond the four new models. Fiat has significantly improved its approach to costing for all its product ranges.”
Gianni Coda, Fiat Group Purchasing
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