The Challenge

An international leading automotive supplier of metal parts had experienced significant losses – driven by one particular production facility.

The plant in focus suffered from various major operational issues including high scrape rates, low efficiency, and high staff turnover leading to a reliance on expensive contracted labor.

In light of a tight liquidity situation and a potential insolvency, the client needed a rapidly-executed yet comprehensive turnaround plan that summarized and addressed all major operational issues.

Our Breakthrough

Oliver Wyman helped the auto parts manufacturer to define and implement an operational turnaround plan.

In the first step, the project team defined turnaround initiatives based on operational assessments of multiple manufacturing plants of the client.

In the second step, the project team facilitated the communication about the turnaround plan to lenders and OEM customers and ensured the implementation of the turnaround initiatives. 

Our Impact

The turnaround initiatives improved the EBITDA margin by 15-20% percentage points.

The EBITDA decline of the most troubled plant was reversed after just three months.

Bondholders and OEM customers agreed to support the turnaround which ensured the survival of the company.