Driving Cost Efficiency in the Automotive Industry
Success Stories from Two Leading Automotive Innovators.
In today’s automotive landscape, optimising costs while upholding quality and competitiveness is essential for success. Leading companies like Stellantis, Ford, JLR, and VW Group have recently highlighted how strategic cost-reduction initiatives, bolstered by specialised external expertise, can achieve substantial financial benefits and establish new benchmarks for operational efficiency.
Pioneering Cost and Weight Reductions in Energy Storage Systems
For the leading British automotive company focused on electric vehicle innovation, achieving targeted cost and weight savings across energy storage components was crucial. This challenge, managed under a specialised internal initiative, was entrusted to ALTEN, who applied its experience in energy storage to deliver substantial results. Alten deployed a specialised team of engineers, led by a resolute Project Leader, to take end-to-end responsibility for the entire process, from idea generation through to implementation, leveraging a tailored operational framework.
In just 15 months, ALTEN’s team thoroughly evaluated over one hundred cost-saving ideas within the company’s energy storage system, collaborating closely with suppliers, commodity leads, and product stakeholders. Through meticulous parts analysis, competitive benchmarking, and hands-on teardown events, we effectively identified and realised actionable savings. Our collaborative approach ensured that all key stakeholders—across Engineering, Finance, Purchasing, Cost Engineering, and Manufacturing—were aligned on implementing the most promising ideas.
The outcomes were impressive. We achieved validated cost savings well above the company’s initial targets, with an average unit saving of £16.94 compared to the £6 goal given by the OEM.
This translated into potential savings of up to £60 million in Net Present Value (NPV). Beyond the immediate financial impact, many of the innovations developed for this internal initiative were cascaded to future programmes, creating sustained efficiency gains across the company’s battery initiatives.
ALTEN were proudly recognised at the company’s Annual Supplier Excellence Awards, specifically in the Impact category, for the cost-saving benefits we delivered to their business. This award highlights our significant contributions to their business transformation and operational success.
Cost Optimisation for a Flagship Engine Programme
Another prominent leader in the UK automotive sector, aiming to maintain competitiveness in its flagship engine line, sought a comprehensive cost-down solution. Facing internal challenges—including time pressures, competing workload priorities, and limited supplier engagement—this company enlisted the ALTEN Group to bring focus and expertise to the project. We implemented a structured, multi-faceted approach designed to meet the project’s ambitious cost-saving goals within tight timelines.
Our efforts included “out-of-the-box” idea-generation workshops, which brought together cross-functional stakeholders to foster creativity and enthusiasm for the project. With dedicated project management resources in place, we ensured alignment on cost targets and provided sustained momentum, despite the competing demands on the engineering team.
A critical component of our approach was its benchmarking workstream: teardown events and competitor analysis provided fresh perspectives, helping the team identify and prioritise the most impactful cost-saving ideas.
The results exceeded expectations, with the company achieving a Bill of Materials (BoM) cost saving of $265 per unit—more than 30% above the initial target. Our collaboration generated over 400 ideas for cost reductions, of which 203 passed initial investigations, and 90 were implemented.
Alten’s structured methodology also created a blueprint for similar future projects, embedding a culture of cost efficiency and continuous improvement across the company.
The Value of Strategic Collaboration in Automotive Cost Optimisation
Our Unique Value Proposition (UVP) is simple yet powerful: we don’t just deliver results—we push boundaries.
With a proven legacy of transformative impact in the automotive sector, the ALTEN Group brings unparalleled technical expertise and a dynamic, adaptable methodology that thrives in any environment. While others consult, we roll up our sleeves and form true partnerships, immersing ourselves in challenges to drive innovation and outperform even the most ambitious cost-saving and operational targets. Our approach is more than meeting expectations; it’s about defining new standards and unlocking the full potential of our clients’ ambitions.
Our approach combines dedicated project leadership with cross-functional collaboration and thorough benchmarking practices, delivering immediate financial gains while building a sustainable framework for long-term efficiency. By fostering active engagement with both suppliers and internal stakeholders, we ensure alignment, streamline communication, and promote a culture of continuous improvement.
In an industry increasingly tasked with balancing cost, quality, and sustainability, ALTEN’s proactive, integrated approach to cost management serves as a benchmark for supporting profitability and competitiveness in today’s dynamic market environment.
