A leading automotive manufacturer wanted to reduce its fleet's emissions in Europe. Its customers demanded gas-guzzling models, like trucks and SUVs, but European Union regulations mandated emissions reform. The company had to keep these competing interests in balance or hurt profits and face millions in fines.
The Challenge and Benefit
The company couldn’t control demand for high-emitting vehicles, but managing market availability for optional features, such as sunroofs and paint color, would lower each vehicle’s emissions by as much as 30 percent. Unfortunately, the company’s legacy planning software used a base model to estimate emissions. That left a lot of room for error – and potential for fines. When the company switched to RapidResponse, planners began tracking vehicle volumes and options mixes to create more accurate forecasts. Now, instead of embracing the unknown, they proactively test and implement scenarios that will meet annual revenue and emissions targets.