BCGIndustrial & Manufacturing35 min5 steps
Tier 1 Supplier Margin
Help an automotive parts manufacturer restore profitability following a sharp decline in margins.
56 people tried it
Skills practiced
- business_sense
- graph_reading
- maths
- structure
The brief
Your client is AutoParts France, a French automotive supplier specializing in the manufacturing of precision metal parts for car manufacturers.
The company generates €180M in revenue and employs 1,200 people across 3 production sites (2 in France, 1 in Romania). Its main clients are Stellantis (40% of revenue), Renault (30%), and German manufacturers (20%).
Over the last 18 months, the operating margin has dropped from 11% to 3%, jeopardizing the company's viability. The CEO is concerned as this decline has accelerated over the past 6 months.
The client's question
The CEO asks you to diagnose the causes of this decline in profitability and to propose a plan to return to a 9% margin within 12 months.
5 steps to solve this case
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