Automotive companies acknowledge the benefits of reducing costs, focusing on value and reinvesting cost savings into growth, but fewer than 1/3 are positioned to fully optimize and deliver those outcomes.
To respond, dealers must figure out how to use the customer data they have to improve online sales and digital interactions. Car manufacturers must produce vehicles faster, and according to customer preferences. But how?
To meet the escalating demands of the digital age, automotive companies must revitalize sales and operating models and unlock savings that can be reinvested in digitally enabled programs that will fuel growth and agility.
Accenture globally surveyed automotive executives (including car manufacturers, original equipment manufacturers and aftermarket parts retailers) and investor analysts.
There is strong agreement that technology and advanced operating models are enablers for both cost reduction and growth:
What’s fueling cost management activities?
The top outcomes driving cost management activities are:
What’s hindering cost management activities?
The top barriers that are most commonly cited while implementing and sustaining cost management efforts are:
Automotive industry analysts believe that further cost savings can be made through changes in production methodology.
Greater platform-sharing within and between manufacturers
Moving production close to raw material locations or to lower cost countries