Automotive
PROJECT OBJECTIVE
Address significant cash flow and profit challenges for the largest automotive dealer worldwide.
Client Challenges
&
Pain Points
- High overdue debt levels (36%) creating significant strain on cash flow and limiting operational flexibility.
- Escalating financing costs and unfavorable debt terms, reducing profitability and increasing financial risk.
- Limited visibility into cash flow and financial performance, making it difficult to forecast and manage liquidity effectively.
- Weak inventory and debt management policies, leading to inefficiencies and poor supplier confidence.
Approach
&
How We Helped
- Revised inventory and debt policies, negotiated $750M refinancing with banks and suppliers.
- Implemented cash flow forecasting tools to improve visibility and support proactive financial planning.
- Introduced performance monitoring dashboards to track financial KPIs and ensure sustained improvements post-implementation.
- Developed supplier engagement strategy to renegotiate payment terms and strengthen long-term relationships
Value
Provided
- Strategic Impact: Improved supplier relations and strengthened financial position.
- Reduced overdue debts from 36% to 22% and achieved $10M annual savings through pricing improvements.
- Improved cash flow stability, enabling timely supplier payments and reducing operational disruptions.
- Enhanced creditworthiness and financing flexibility, allowing access to better terms for future growth initiatives.
