Concept and implementation of capacity adaptation of southern european subsidiaries

Client:Automotive supplier

SectorAutomotive supply industry

Project duration:7 months

Contact:Dr. Arno Haselhorst

Company size:EUR 150 million

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Need for adjustment of capacities in Europe

While German luxury car manufacturers and Volkswagen were able to improve their results and increase their market shares, mass producers such as Renault, Peugeot or Opel continue to incur losses running in billions. The difference lies in the dependence of respective markets. BMW, Daimler and Volkswagen are benefiting from the growth of export markets, while other manufacturers are heavily dependent on the European market. It has been declining for years. In 2013, a further decline is expected in Europe before the bottom is reached.

In the medium term, a significant increase in sales is unlikely in Europe, and especially in the southern European countries. Currently, only around 70 percent of the plants in Europe are working at full capacity. Consequently, cost-covering production is not possible. Adapting capacities in Europe is therefore an important alternative for car manufacturers and a logical consequence for suppliers.


  • Review of alternatives: Carve-out/Sale/Restructuring

  • Review of alternatives: Carve-out/Sale/Restructuring​

  • Setting realistic target margins

  • Specification of the potential: production, logistics, administration

  • Development of a staff reduction plan


  • Scenario plan​
  • Implementation of project organization

  • Product transfer and ensuring end of production​

  • Management of workforce reduction

  • Definition of internal and external communication


  • Efficient implementation of the target scenario​
  • High transparency regarding business case and KPIs

  • Focus on central and local top management