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Saving double-digit millions of euros across a product lifecycle

Leading global automotive supplier Magna Steyr asked PA to help draw up a cost reduction programme for the manufacture of a coupé on behalf of Peugeot.

For the first time, Magna Steyr had taken over complete responsibility for the development, purchasing and production of the specific vehicle components, accounting for 40 per cent of the material cost. The cost reduction programme needed to close the gap with the originally defined target costs for the vehicle components.

PA worked with the project team to analyse specific parts of the vehicle, identify savings potential and optimise the supply chain.

Together with PA, Magna Steyr saved double-digit millions of euros across the lifespan of the car, both in terms of parts and machinery and development costs. The consulting costs were recouped within the first six months across a relatively low volume of cars.

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