Electric Vehicle Cost-Cutting Pressures Companies to Become More Efficient

Tesla has been a trendsetter on many issues. Now it is leading the pack by promising to reduce the costs of building next-generation cars by 50% in coming years, writes Tim Higgins in the Wall Street Journal. Yet Elon Musk doesn’t mention the role frontline workers will play. 

In Elon Musk’s Cost-Cutting Targets at Tesla Pressure EV Rivals, Higgins notes that competitors will need to overhaul processes to match pace with Tesla’s cost cuts without destroying already razor-thin profit margins. This goes for suppliers as well – everything along the supply chain will have to be scrutinized to guarantee the highest levels of efficiency.

One overlooked area continues to be the frontline workforce at both automotive manufacturers but especially their supply chains which have yet to benefit from the massive amounts of automations experienced by the car manufacturers themselves.  There is a massive amount of opportunity in the tier-2 and tier-3 automotive industry which supplies the manufacturers of EVs.

QAD Redzone can help these manufacturers create new efficiencies and establish a culture of continuous improvement. The company’s Connected Workforce Solution unlocks the collective genius of frontline workforces to improve productivity, reliability, and compliance processes, while streamlining knowledge sharing with digital learning capabilities. Companies that deploy QAD Redzone drive overall equipment effectiveness (OEE) by an average of 14 points and productivity by 29% in just 90 days.

2023 Productivity Benchmark Report

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