Motherson Launches Cost Optimisation Drive in Europe

11 Apr 2025 CW Team

Motherson has announced a proactive cost optimisation initiative through its subsidiary SMRP BV, aimed at enhancing operational efficiency amid rising global uncertainties in the automotive sector. The company plans to streamline operations in Central and Western Europe, targeting an annual cost savings of approximately €50 million over the next three years.

The move comes as Motherson responds to growing complexities in the global supply chain and regulatory landscape. With 23 acquisitions since 2020, the company has significantly expanded its global footprint, and this latest initiative is part of its strategic recalibration to "breathe with the market."

The measures will be implemented in phases and involve active engagement with local workmen representative associations. The optimisation plan will cover areas such as salaries, benefits, overheads, and contract employee costs, with a focus on aligning the workforce to current and future business needs.

Motherson emphasised that the transformation will ensure uninterrupted customer service and will be fully compliant with applicable regulations. The company reiterated its commitment to delivering sustainable value to stakeholders while navigating the evolving automotive production environment.

(BSE)

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