Client Problem
A leading Chinese auto parts company realized its first significant loss and needed to turn around its operations.

How We Helped
McKinsey studied the company's current performance along the value chain and benchmarked it against industry best practices. We identified cost-cutting opportunities and areas for growth, and projected the company’s scope for overall improvement. We also codified near-term and mid-term success targets, against which we designed a comprehensive program for capturing increased sales. In order to boost short-term sales performance, we conducted a complete pilot program in a plant in northern China.

Client Impact
The project delivered specific, sustainable value improvements in sourcing, manufacturing, and marketing. Sales in the pilot plant grew by more than 20 percent just four months following the project's launch. Overall nation-wide sales increased by 13 percent in the first year of rolling out the new program to the company's other plants.