Guido Plaizier

Wessel Visschedijk

21/12/2011 1

Problems

Recommendations

Productivity forecast

Summary

21/12/20112

High production costs

Small market share

21/12/20113

Two major causes

Low productivity

High wages

21/12/20114

source: Market Leader by Iwonna Dubicka and Margaret O’Keefe, page 153 21/12/20115

0

50000

100000

150000

200000

250000

300000

EA Germany EA Belgium Chinese car maker

Indian car maker

Annual productivity rates

Cars per year

source: Market Leader by Iwonna Dubicka and Margaret O’Keefe, page 157 21/12/20116

0

5

10

15

20

25

30

35

40

45

50

Germany China USA

Average hourly pay rates for assembly-line workers

Dollar per hour

Chinese manufacturers

New markets

21/12/20117

Close Belgium factory• Low productivity

• High wages

Open factory in India• Distance

• Low production costs

21/12/20118

Obtain discounts• Long-term relationship

• Knowledge

Give dealers discounts• Marketshare

• Relationships

21/12/20119

Restructure factory Germany• Merit based

• High quality

• R&D

21/12/201110

3bn

2bn

1bn

Erstaunliche Autos projected savings

Improved sales

Labour costs

Reducing suppliers costs by 10%

Source: Tomkins & Kosters 21/12/201111

High production costs

Small marketshare

Factories

Recommendations

Productivity forecast

21/12/201112

21/12/201113