Generate cost saving through volume merit, on part-by-part basis |
CV |
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Commonize next generation MD and LD cab (-30%) |
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Volume merit from HD and MD truck (-15%) |
| - |
In short-term, reduce domestic supplier prices by leveraging China/ASEAN volume (eg. extensive use of dies) |
| - |
In mid-term, expand procurement from China/ASEAN to achieve further cost reduction |
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Drastic de-proliferation : vehicle variations, engine series |
| - |
HD: 500 200 |
| - |
MD, LD: 5,000 2,000 |
| - |
Engine: 9 7 series |
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| LCV |
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Combine purchase volume with US-produced GM volume (WWP program) |
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Review manf. footprint plans for new engine (Japan, China, Thailand) |
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Secure re-quotation and/or re-source based on increase volume including derivative models (10%) |
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Unconventional Approach (esp. leverage alliance) |
|
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Joint purchasing with GM Alliance Partners (FHI, SZK, GM): 13 commodities + a |
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Collaboration with keiretsu body-builders: Integrate chassis & body engineering (body: 10%) |
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Supply component to 3rd parties (GM, domestic competitors, etc) |
| |
- |
Suspension, T/M, Transfer |
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Reinforce complementary relationship with non-keiretsu suppliers |