Case Study: Magna Steyr achieves double-digit million euro savings with PA Consulting

Saving double-digit millions of euros across a product lifecycle

Magna Steyr, a leading global automotive supplier, asked PA Consulting to help develop a cost reduction programme for the manufacture of a coupé on behalf of Peugeot. The challenge was to close the gap between actual costs and the originally defined target costs for vehicle components, especially as Magna Steyr had taken on full responsibility for development, purchasing, and production of components representing 40% of material cost.

PA Consulting worked with the project team to analyze specific vehicle parts, identify savings opportunities, and optimize the supply chain. The result was savings of double-digit millions of euros across the vehicle’s lifecycle, including parts, machinery, and development costs, with consulting fees recouped within the first six months despite the car’s relatively low production volume.

Magna Steyr