Erstaunliche Autos faced financial difficulties including high salaries, production costs, and international competition. The company's goals were to boost productivity and profits. Potential solutions included moving production to India/China or retraining employees in Belgium for administrative roles. The final solution involved moving factory production to India while retraining willing Belgian employees for administrative jobs and providing funding for their education. This allowed the company to reduce costs through a five-day work week and lower salaries while maintaining social responsibility.

1. Erstaunliche Autos
Berend Janssen s2202654
Reinier Volgers s2188759
Consultants Tompkins& Kosters
S

2. Information
S Company’s Information
S Difficulties Erstaunliche Autos faces
S Goals
S Potential solutions
S Final solution
S Conclusion
S Questions
14

3. Company’s Information
S German Car manufacturer
S Facing a fincancial crisis
S Newly named CEO Bernd Wulf
* Plans to boost productivity
* Drastic cost-cuttings
* Potential loss of jobs
13

4. Difficulties
S Employees work 4 days a week
S High salaries
S International competition
S High production costs
12

5. Work week
Working Hours
Polen
England
Romania
France Working Hours
Germany
Netherlands
Belgium
34 36 38 40 42
11
www.amcham.be

6. High salaries &
International competition
S High Salaries  less market power
S International competition ahead of EA
S High Salaries & small workweeks
S High Production Costs
10

7. High salaries
Average Wage(in $)
100
90
80
70
60
50
40
30
20 Average Wage(in $)
10
0
www.automation.com
9

8. Goals
S Reform structure  Increase productivity
S Boost Profits by 4bn Euro in 3 years
S Boost Earnings by 10bn Euro
8

9. Potential Solutions
S 1) Leave Belgium – Factory in international
environment (India/China)
S 2) Leave Belgium ‘Factory wise’ – Reschool
Employees (Administrative Work)
S 3) Stay in Belgium – 5 day work week – Less Salary
8

10. Final Solution
S 2nd options  Leave Belgium ‘Factory wise’
Reschool Employees (Administrative Work)
S Social Responsibility
S Media
S Extension of the company
7

11. Final Solution
S Factory in India
S Retrain Willing Employees
S Assembly line  Administrative jobs
S Loan & Funds provided by government
S Otherwise unemployment
S Loan paid back by improved earnings
6

12. Final Solution
S Now 5 work days a week
S Less salary  More training for employees
S More efficient & better educated
S Corporate Social Responsibility
S Schools & Child Care
5

13. Final Solution
Boost Profits by 4bn Euro in 3 years
Reducing Suppliers
0,7 Costs
0,2
Others
1,8
Labour Costs
1,3
Savings in Improved
Sales
4

14. Conclusion
S More and happy employees
S Assembly line worker  Administrative worker
S Lower production costs
S Lower salaries
S Strategic advantage
3

15. Questions
SAre there any
questions?
2

16. SThank you for your
attention
1