Study On Cost Target Management For Passenger Car Manufacture

After China’s reform and opening up,on besides of the economic dramatic blooming,the life condition and consumption of normal citizens has also a great development.And passenger car,which was regarded as luxury article,becomes daily tools for each family.The reasons for such switching are not only because of high-speed development of domestic economic,but also the competition of passenger cars market makes the price is becoming much more affordable,which accumulates the consumption from normal customers.But on the other hand,although the lower price can stimulate customer’s purchasing will,but it means higher pressure for the cost of product for the car makers.How to dig out the potential of profit from cost and survive from this fully competitive red-ocean market? It needs the key to enhance the margin of product.Therefore,the article hereby is trying to present the whole process of target cost management,which is involving the research of customer needs,product design,R&D,producing and selling.Based on target cost management as the research object,this article analyzes the recent situation of product cost controlling method in the automobile industry,and presents its theoretical system,method and trend.Moreover,comparing to the successful experience from Company A as a world-wide famous automobile maker,the suggestions to the shortage and disadvantage of local OEM’s cost controlling are also discussed and listed within.This article emphasizes on the application experience,and supplies the processing solution of parts’ R&D and cost management based the target costing management.In order to present a collaborating mechanism based on trust,cooperation and information sharing of multi-departments,the theories such as marketing atmosphere analysis,benchmark,brainstorming etc.are frequently applied.And to prove the performance of the theory,the actual cases such like product cost auditing mechanism,cost group,commercial negotiation of A Company are introduced as example.And as conclusion,the actual marvelous economic performance of this theory in Company is described statistically.