End-to-End Profitability Program for Global Automotive Supplier

We combine deep industrial expertise with private equity insight to drive real results. We future-proof your business with concrete, tailored and impactful consulting services. A leading automotive supplier faced the challenge of developing drive components for multiple demanding OEMs. Together with its teams, EFESO established transparency across R&D, operations and procurement to tackle complexity. The four-year transformation program delivered billions in savings across the global organization. Industry: Automotive and Commercial Vehicles Service: Cost and Value Engineering Service: Manufacturing Service: Procurement Our Client The client is one of the world’s largest automotive suppliers, serving both the automotive and industrial sectors with advanced mobility solutions. Its innovation-led portfolio includes components and systems supporting multiple OEMs globally. The organization operates across multiple continents, developing and manufacturing drive components that combine traditional combustion technology with emerging hybrid platforms for passenger vehicles. The Challenge Technical integration complexity: Combining new technology with existing combustion platforms required capabilities the organization lacked, creating uncertainty around feasibility and costs Multi-OEM coordination: Managing simultaneous requirements from several major global OEMs, each demanding premium treatment and specific customizations while expecting volume-driven pricing Profitability visibility gaps: Lacking transparency into actual R&D costs, material expenses and operational complexity prevented fact-based decision-making and revealed widening profit margins across all areas Real Results Achieved Together $3B Institutionalized structure savings approaches now embedded into regular management and project review processes Strengthened internal capabilities through knowledge transfer, empowering workstream leads as true partners in execution Our Approach The transformation unfolded through a structured transparency phase, establishing baselines for product costs, R&D spend and investment requirements. We deployed multiple parallel workstreams: material cost optimization through global sourcing events and supplier renegotiations; operational excellence via plant layout optimization and make-or-buy strategies; R&D efficiency through resource prioritization and modular development; and rigorous tooling and investment management. Cross-functional steering committees met weekly and monthly, bringing together client stakeholders and our consulting teams with a relentless focus on execution. Each workstream had dedicated experts–product cost calculators, purchasing specialists, manufacturing consultants and R&D advisors. The team served as a single point of truth for both board level management and the global project organization teams, providing transparency dashboards and concrete action plans with clear owner accountability throughout the four-year journey. Related Services Facing Similar Automotive Profitability Challenges? Struggling to maintain margins while developing new technologies for demanding OEMs Seeking transparency across complex global operations and multi-customer programs Ready to transform operational complexity into sustainable profitability through partnership Chemicals 11% Aerospace & Defense €21 M Chemicals $1.8M $2.5M Annualized savings Food & Beverage 61% Food & Beverage $1M $8.5M How we Help Language selector