Research On Cost Management Improvement Of F Automotive Company

With the rapid development of information technology and the advent of the Internet era,intensities the global economic integration.The competition among enterprises is increasing.In particular,it is obvious in Car Industry.The economic crisis caused debt crisis,made devastated loss on automotive.It is reported that car volume get negative growth in future and faced artificial intelligence upgrade.The global automobile industry which has been affected by the global financial crisis in recent years now is facing a severe ordeal.GM,Ford and Chrysler,north American car giants are struggling in the brink of bankruptcy.Toyota,another world auto giant suffered from their first loss in 71 years.WeiLai the leader of China's new energy vehicles and Tesla are on a cut price sale in Chinese market.The global automotive industry is facing unprecedented turbulence.In order to get a long-term survival and development space in a fiercely competitive environment enterprises have to enhance the innovation ability,develop new products and to open up new markets.Beyond that,cost down is a key point for enterprises to be more competitive.This paper starts from analysis of current cost management situations and issues in automotive industry with the model of Faurecia Auto parts Co.Ltd.Then using the theory of comprehensive cost management,the requirements of China's management accounting and the corresponding cost control methods,the author provides proposals to improve cost management for Faurecia.Finally,the author works out several specific safeguards for implementation and continuous improvement of cost management-set full participation cost improvement as the company culture,the integration of business and finance cost management,the comprehensive budget,the strict KPI system for cost center responsible persons,etc.The article is divided into six parts.The first part mainly discusses the research background,research purpose and significance,the combing of domestic and foreign cost management literature and the research content and method.The second part introduces the theory of cost management as the preparation of following analysis.The third part,with regard to the market environment and the industry development process the author uses the Faurecia as model to conduct the cost management situations and issues in automotive in industry and the causes analysis.The fourth part is to elaborate the cost management improvement methods,including the establishment of a perfect internal control system andthe corporate budget system with general mobilization,as well as cost-saving measures in all aspects of the enterprise.The fifth part introduces the safeguard measures for the implementation and continuous improvement of the cost management.The last one is summary the paper and state the limit on research.