Case Study On Cost Management Of CAMC

As national economy develops fast,the role of the automobile industry has become increasingly apparent.In recent 10 years,the share of automobile car share account for more than several years in the national economy,which has become one of the major indicators reflecting the national life level.With a close relationship with upstream and downstream enterprises,the auto industry has the characteristics of wide scope of influence,which not only affect the overall level of economic development of countries,but also affect the quality of life of consumers.CAMC has played a major rule in the development of national automobile industry.Although China's automobile industry offers a variety of protective measures,automobile enterprise is facing huge pressure with the popularity of "Sustainable Development" policy.A large series of international automobile companies has been building factories in China because of the intimate connection of global economy,the cheaper state of human resources of China and the professional promotion of car technology.Meanwhile,domestic car companies are also constantly to launch the brand products and decrease the price of diverse car product,which not only reduce profit margins,but also has contributed greatly to the fierce competition situation.Under the remarkably increasing situation of raw material price,in order to get a place in the fierce competitive environment,China's national car companies have to take measures to improve the product's market share and change the previous management mode,especially strengthen the cost management style of the company.Also,the company has to enhance the operational efficiency.This study deeply analyses the current state of cost and fees of CMAC,analyzes the main causes of losses,so as to improve the efficiency of cost management and supply reasonable plan to improve the profit.At last,the study thinks that CMAC firstly should strengthen the overall notion of cost control of the company and the awareness of cost control to reverse the lost statement.Under the trend of increasing price of raw material and labor cost in the current international environment,which largely contributes to the high manufacturing cost,the company has to take measures to decrease the related expense during the operational progress in order to improve the profit.In the premise of the fierce competition of automobile industry,most companies are investing more on the sales expense,so CMAC has the urgent need to improve the efficiency of money spent in sales progress to achieve higher sales.Due to high investment in research and development,CMAC has to takes necessary measures to decrease the expense: first of all,based on the industry-leading experience to improve company development process and the international influence;then,through outsourcing technology and the introduction of strategic investors and other ways to change partial progress of the research and development mode;what's more,identify the standards to better distinguish of research and development fees to expensing and capitalization;shorten the period to put related development to actual practice and so on.In short,through these means,the company has the ability to reduce the relative cost.Because CMAC mainly raise funds by bank loan,especially frequent use by the short-term mode,so the financial cost is extremely high.The case give the final plan to decrease the financial cost is that CMAC must use the identity of the listed companies in the capital market equipped with more financing channels of financing,to achieve the purpose of reducing the financial cost.Based on the cost management of CAMC,the study describes the remarkable significance of improving cost management on China's automobile enterprises.At last,the study furnishes the corrections and implementation of security,to highlights the cost management theory and method of application of the automobile enterprises in our country.May the design could ultimately change the current state of CMAC labeled by the SFC to present *ST "logo,to avoid the occurrence of three consecutive years are marked with" *ST ",which leads to the ultimate fate of delisting.Hope that this case study can provide effective solutions for CAMC,as well as automobile enterprises to strengthen cost management and to improve the management level.