SG&A Cost Reduction – Overhead rightsizing 

Client Challenge 

The client faced increasing cost pressure as key OEM customers delayed or cancelled EV production programmes. While the company had proactively invested in e-mobility capabilities, the resulting overhead structures proved too heavy amid declining revenues. A swift realignment of SG&A functions was required to restore profitability and competitiveness. 

H&Z Approach  

H&Z partnered with the client’s leadership to develop a pragmatic and targeted overhead optimisation program. To lay the foundation, a task analysis was conducted across all group functions to differentiate core from non-core activities and uncover structural inefficiencies. Building on this, in-depth interviews with vice presidents helped identify concrete savings levers and define high-impact measures. C-level workshops ensured early alignment, transparent decision-making, and prioritization of actionable initiatives. To validate the proposed measures, benchmarking against leading automotive suppliers was performed, allowing the customer to position itself competitively with a future-proof overhead setup. The structured, collaborative approach combined analytical depth with leadership involvement to ensure feasibility, acceptance, and long-term effectiveness of the solution.

Results

• 10% overhead cost reduction achieved, delivering approx. €3.5M P&L impact in the upcoming year 
• Severance cost analysis: Quantified financial implications based on national labour regulations 
• Actionable cost reduction roadmap: Delivered a DIO-structured measure catalogue by group function