A family-run company in the automotive supply industry had fallen into a deep crisis. The company's banks had stipulated in a restructuring report in accordance with IDW S6 that the company had to be sold after operational consolidation in order to preserve the company with a total of 600 jobs. The interim manager was appointed by the banks as interim CEO and management spokesperson in order to restructure the company and then sell it.
Acute cash crisis resolved through negotiations with OEM
The company was already generating operating losses of more than minus ten percent with a high double-digit million turnover. At the beginning of the interim mandate, the already difficult financial situation worsened. The company was working on tools for an OEM manufacturer. Because project progress had fallen behind schedule, the OEM stopped making payments. The interim manager's first task was therefore to convince the OEM to continue working together constructively. This was achieved by presenting plans for structured project management, which gave the OEM renewed confidence that the project would be delivered on time. The acute cash crisis was resolved.
Intensive store floor management in production, supply chain and quality assurance
The interim manager started the operational consolidation of the company in production. He developed and introduced daily store floor management, which he handed over to the production, supply chain and quality departments after three months. The implementation and support of daily meetings also stabilized order processing in purchasing and planning and made it transparent across departmental boundaries. The interim manager reorganized injection moulding production, the warehouse, goods provision and assembly in collaboration with managers and teams according to lean aspects. As a result, output and delivery reliability improved significantly.
New processes for product development and quality management initiated
The interim manager identified extremely high quality costs in the company. Process analyses and workshops revealed that frequent changes in responsibility and changes in priorities led to a large number of small errors, which ultimately resulted in high costs. In order to be able to produce efficiently and with high quality, the interim manager initiated the development and introduction of a structured product development process. He reorganized the responsibilities in the area of quality and involved development more closely in the processes. The interim manager personally supervised recertifications in accordance with ISO 9001 and IATF 16949. Within two years, this made it possible to halve quality-related costs.
Initiatives from product strategy and controlling to new customer acquisition
In addition to day-to-day business, the interim manager worked with the department heads to develop a new product strategy that aligned the company with new technologies. This reorientation proved to be logical and secured the company's long-term existence.
The interim manager also initiated various improvements. These included, for example:
- Renegotiating prices, New projects and operational problems with the OEM
- visits to suppliers in Eastern Europe and regular consultations with partners in China
- consistent monitoring of liquidity as well as creditors and debtors
- regular information events and meetings with the works council
Company successfully consolidated - sale secures 600 jobs
At the same time as the operational consolidation, the interim manager initiated the sales process together with an M&A consultancy. Out of 400 interested parties, ten serious candidates remained in the end. After one year, the preliminary annual financial statements showed an almost black zero. The interim manager then began the final negotiations with the buyer, a company in the automotive supply industry with a turnover of three billion euros. After 1.5 years, the interim manager signed the purchase agreements as CRO and spokesman for the management and the buyer's CEO. According to the mayor, the most important industrial project in an industrial city in the Black Forest had thus been successfully completed and a total of 600 jobs had been saved.
