Electrolux 2001 Annual Report Download - page 16

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“We are reducing costs and
complexity in Europe…
Major investments in new platforms
Approximately SEK 1 billion will be invested in new prod-
uct platforms over the next few years with the aim of
reducing the number of product variants and making
production less complex, which will contribute to accel-
erated launches of new products.
This will enable increased plant specialization, further
consolidation of manufacturing to a few master plants with
R&D and administrative resources, and a reduced number
of smaller, leaner units.
Fewer platforms mean less tied-up capital, lower R&D costs and shorter time to market for
new products. They also enable lower purchasing costs, thanks to larger volumes of standard
components.
Refrigerators 46 17
Washing
machines 13 6
Dishwashers 41
Cookers 41 Structures 27
Ovens 32 Cavities 10
Product area Change in number of platforms
“We are reducing costs and
complexity in Europe…
Major appliances in Europe showed positive trends for volume and income during 2001,
resulting in an increase in both operating margin and market share.
Our continued efforts to create a pan-European organization and integrated processes
paid off, contributing to improved efficiency and lowered costs. SG&A, i.e. costs for selling
and administration, for major appliances in Europe dropped in 2001 to 17.5% of sales in
contrast to 19.6% in 2000.
12 REPORT BY THE PRESIDENT AND CEO
Fewer plants and platforms
We are increasing our efforts to drive down costs and reduce complexity within the
organization.
Most of the SEK 1.5 billion provision for restructuring that was announced in
December 2001 refers to major appliances in Europe, and includes:
• Closure of three production plants
• Investment in new product platforms
• Continued rationalization of sales and administration
• Concentration of product development to the major plants
• Centralization of the brand organization to the head office of Electrolux
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