How This Automotive Engineering Company Developed a Cohesive Cost Reduction Strategy
Getting to market quickly with a high-quality product can sometimes come at the expense of a cohesive cost reduction strategy.
Hailing an iconic black cab in London has long been considered a safe and reliable premium service synonymous with the city. Today, with the transportation sector flooded with competition, and the current focus on turning London into an electric city, the rebirth of the black cab came at just the right time. Realizing their potential, The London Taxi Company – the original black cab company – was purchased by Geely of China in 2013. The resurrection of the iconic black cab combined with the city’s new zero emission policy on all taxis has evolved into The London Electric Vehicle Company.
As a new business creating a new design with a new team, a new factory, and a new supply base, the number one priority for LEVC was getting to market quickly with a high-quality product. This drove a focus on delivery at the expense of an integrated costing strategy. The closer they got to launch, the more apparent it became that they hadn’t put as much into the cost management side of the vehicle as they should have. It was during this time that LEVC committed to developing a cohesive cost reduction strategy going forward.
Check out the full case study to learn the process LEVC followed to evaluate cost reduction solutions, how they determined the solution that was best for their end goals, and the huge savings opportunities they have identified for new products going forward.