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PA OPINION

Identifying product cost-savings worth hundreds of millions in automotive

The PA Perfect Cost Grid® benchmarking and cost-engineering platform - for a personal presentation, contact us now.

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.

PA Consulting Group's 'Perfect Cost Grid' (PA Perfect Cost Grid®) – the first web-based benchmarking and cost-engineering platform for the automotive industry – gives your purchasing, cost engineering and development teams timely online access to the comparative data and costing tools they need to develop competitively priced vehicles, achieve significant savings in product costs and minimise investment.

The Perfect Cost Grid® enables your organisation to:

  • calculate product costs using proven templates and databases for machinery, material and country-specific costs, drawing on thousands of data items and consumables in more than 60 countries
  • benchmark your technical and commercial solutions against competitors based on annual updates for new models
  • identify additional product cost savings through fine-tuning your calculations with PA's online cost-engineering support, benefiting from comprehensive training by our experts, both online and on site

PA has worked with almost all leading global car makers and suppliers – including Fiat, Inalfa and Magna – alongside all segments, systems, cost drivers, and programme phases, helping them save hundreds of millions of euros in shortest possible time.

For using the PA Perfect Cost Grid® benchmarking and cost-engineering platform to achieve cost transparency , please contact us now.

PA Perfect Cost Grid