+2K
Employees
Empowering Cost Transparency for High-Volume Battery Module Supply
A mid-sized European automotive supplier faced a critical opportunity to quote a high-voltage battery module for a premium OEM program. EFESO developed a fully auditable Greenfield cost model, building internal confidence and long-term capability.
Industry: Automotive and Commercial Vehicles
Service: Cost and Value Engineering
Our Client
A mid-sized European automotive supplier with over two thousand employees. The company specializes in electrical and electronic modules, with expertise spanning R&D to scaled manufacturing, particularly e-mobility system components for passenger cars.
~€900M
Annual revenue
The Challenge
The supplier aimed to quote a high-voltage battery module for a premium OEM’s next-generation vehicle program, representing 1.5 million units over the product lifetime. Key challenges included:
- Cost gap: Unit costs €120 above OEM target, a 25% discrepancy
- Knowledge & experience gaps: First time quoting at this scale in the battery module segment
- Data accessibility: Missing or hard-to-access cost data for key components
- Time pressure: Compressed timeline for initial cost breakdown and full quotation
- Cultural resistance: Internal skepticism and previous project setbacks
- Competitive environment: OEM applied external cost experts to challenge quotations
Real Results Achieved Together
EFESO’s engagement delivered measurable and longer-term benefits despite the OEM reallocating investments unrelated to this project.
16–23%
Potential cost savings identified on key bill of materials components
+100
Line items included in the Greenfield cost model
1.5M
Units in OEM program analyzed for cost modeling
Transformation Impact
- Developed a fully auditable Greenfield cost model aligned with OEM and internal assumptions
- Improved negotiation readiness and internal alignment on technical and commercial trade-offs
- Strengthened cross-functional collaboration and internal trust in cost evaluation
- Enabled follow-on projects in product costing and procurement transformation
Our Approach
EFESO deployed a three-step methodology:
- Rapid Expert Assessment: Within two weeks, a multi-disciplinary team focused on highest-cost and most volatile components (battery cells, BMS electronics, thermal systems) to provide an early high-confidence cost estimate.
- Detailed Greenfield Cost Calculation: Bottom-up cost calculation of over 100 line items, benchmarking against internal data and supplier/OEM references. Scenarios considered different cell chemistries, pack assembly strategies, and supply contracts, identifying savings and technical trade-offs.
- Quotation Support and Negotiation Preparation: Prepared all cost documentation for tender submission, simulated negotiation scenarios, and provided evidence-based talking points. Recommendations included design-to-cost, procurement partnerships, and make-or-buy options.
Speed and transparency aligned management and teams; external expertise offered verification and alternative perspectives; documentation was structured for reuse in future tenders and internal business cases.
Related Services
Cost and Value Engineering
Rising costs demand optimization from design through production. We apply cross-functional value engineering, zero-based redesign, and continuous cost tracking to protect margins.
Facing High-Stakes Automotive Quotation Challenges?
- Needing robust cost transparency for e-mobility components
- Seeking alignment across cross-functional teams on design-to-cost decisions
- Aiming to strengthen negotiation readiness with OEMs and Tier-1 customers
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