Artikel vom 05.07.2018
The second step of our „3-Step-to-Simplicity“ Method is about reduction of complexity by reducing the number of options. A typical car manufacturer has lots of such options. When ordering a car many features need to be defined: pages filled with interior details have to be selected as well as several exterior options like colors, tires and so on. All of these need to be developed, tested, negotiated, ordered, planned, certified, stored. Many are kept available for years after the model has already been withdrawn from the market.
The offered variety does not only mean attractive options for customers. It also means higher cost for the manufacturer, many of these costs are hidden general administration expenses.
BMW CFO Nicolas Peter mentioned in an interview with the German magazine Automobilwoche the need for reduction in order to achieve the company´s profitability target of 8 – 10 %.
This results in the fact that the new BMW model 3 („G20“) will come with less variety in regards to types of motors as well as less color options and combinations. Peter refers to Tesla´s simplicity: “On their website they offer two types of a model. You can tick two boxes.“ That´s it! Also German Carmaker Smart will reduce the number of motors. That´s again step 2 of our „3-Step-to-Simplicity“ Method (reduce complexity). In addition, they also take the first step of our method (avoid complexity): they will offer only electric motors, gasoline motors are completely omitted.