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Empowering Cost Transparency for High-Volume Battery Module Supply

Industry: Automotive and Commercial Vehicles

Service: Cost and Value Engineering

Parallaxe

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.

+2K

Employees

~€900M

Annual revenue

Parallaxe

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
Parallaxe

Our Approach

EFESO deployed a three-step methodology:

  1. 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.
  2. 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.
  3. 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.

Parallaxe

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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