Case study

MAGNA Drivetrain

Achieving 20% product cost optimisation of a power transfer casing

MAGNA Drivetrain is a leading international manufacturer of drivetrain components and systems in the automotive industry. Located in Graz, Austria, it is part of MAGNA International Inc, one of the largest automotive suppliers in the world.

PA Consulting Group supported MAGNA Drivetrain's product cost optimisation of a power transfer casing for four-wheel-drive cars, to ensure the profitability of the project. A benchmarking project was conducted that compared five competitors' transfer casings, and the lessons in best pactice that were learned were transferred to the new design.

PA identified cost savings of 20% and achieved savings of 12% in the implementation phase. The results of the project improved cost transparency for the transfer casing and could be used as a basis for supplier negotiations to realise further savings.