Cost-Cutting Package

1.Current Situation 2.Goals 3.Cost-Cutting 4.Productivity Forecast 5.Action Plan Outline

Production costs are 40% higher Current Situation

Increase productivity Boosts profits by 4 billion euros Cut costs by 7 billion euros Increase competitiveness Become one of the world leading car manufacturers Goals

Five-day week and standard salaries Lean manufacturing Process improvement Option A: Open a factory in India Option B: Purchase spare parts from China Cost-Cutting at EA

Age of employees

Cost cutting plan

Productivity Forecast

1) Implement lean production 2) Reduce salaries 3) Renegotiate prices with suppliers 3) Reduce number of senior employees 4)Job cuttings (If necessary) 7 Billion Euro savings are possible! Action Plan

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