Reducing complexity and returning to profitability at PSA’s Opel division

An article in BloombergBusinessweek (August 29, 2018) titled “The Stunning One-Year turnaround of GM’s German castoff” describes a focus on reducing part variety. The article describes reduction of the 57 possible infotainment systems for the Corsa hatchback to 10. It also reports the number of windshield wiper options from 16 to 9 to improve efficiency. Will simplifying designs decrease spare parts revenues in the future? Will car prices be lowered to drive volume given lower costs and higher efficiency?

About aviyer2010

Professor
This entry was posted in consumer, Cost, Operations Management, productivity, Variety and tagged , , , . Bookmark the permalink.

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