Interviews

Marks: This is a very attractive market: the demand for eco-friendly and energy-saving technologies is about to go through the roof in the U.S . The share of renewable energies in the nation’s energy supply is set to reach ten percent by 2012, and 25 percent by 2025. To reach those targets, the government has allocated 25 billion U.S. dollars of its economic stimulus package to renewable energies. So clearly, we expect a surge in demand for products that use renewable energies.

Marks: The measures already taken there should not be underestimated. The U.S. installed far more new wind power generation capacity than any other country in 2008, and it has pushed Germany out of the number one spot as the world’s leading user of wind energy. This trend has been supported by comprehensive incentive programs and tax relief legislation. The benefits are being felt in the real estate sector as well as the wind power market. A homeowner can now save up to 30 percent, or some 7,000 U.S. dollars, by using a heat pump for heating and hot water.

Marks (laughing): We’ve managed to keep up so far… but we are in fact moving to expand the capacity of our U.S. plant for the production of geothermal heat pumps in Fort Lauderdale. This will further improve our ability to meet the market requirements for this technology. Our sales in this segment last year alone were 27 percent up on 2007. We are also considering investing in production plant for wind turbine gearboxes in the U.S., to provide our local customers the best possible service.

Marks: That’s quite true. From model year 2016 on, automakers will be required to meet an average fuel consumption of 35.5 miles per gallon, or 6.6 liters per 100 kilometers. This standard will apply across their entire fleet, including light commercial vehicles. The current average is 9.4 liters. These new conditions have provided clarity for the auto industry and drivers in the U.S., by finally defining a uniform national standard.

Marks: Cutting fuel consumption by 30 percent across the entire fleet is certainly a major task, particularly for the Big Three, which have traditionally had a high proportion of SUVs and trucks in their fleets. OEMs and suppliers will now have to work together to make some quick planning decisions, given the length of the development cycle for a new vehicle and the short timeframe.

Marks: Bosch has a wide range of fuel-efficient technologies. For instance, our common-rail fuel injection system has already turned diesel into an automotive success story. We have been producing this system since 1997. By the start of 2009, we had supplied 50 million units worldwide. Diesel is going to play a part in meeting the new U.S. standards. I also see opportunities for our gasoline direct injection technology with turbo-charging and our start-stop system. These technologies reduce fuel consumption by 15 percent and eight percent respectively.

On the basis of our technological know-how, within a few years we expect to see a standard car in the lower mid-range that will travel 100 kilometers on three liters of fuel, without any loss of performance or range – in other words, a fuel consumption of 33 kilometers per liter or 78 miles a gallon. This car will weigh 1,200 kg, not exactly light-weight. With CO₂ emissions of 70 grams per kilometer, it will exceed all current policy targets. The road to this car is paved with a number of technological development projects that Bosch is currently working on.

Marks: Governments can push environmental and economic progress with special legislation. The scrappage scheme has had this effect in a number of European countries, and the U.S. is now following suit with its “cash for clunkers” program. The demand for new cars is not just helping the automotive industry, it is also good for the environment, as it also leads to the scrapping of large numbers of cars with obsolete technology. We now need to persuade the general public that replacing obsolete technology with new, eco-friendly technology is the right approach. The state can set an example here by using energy efficient and innovative technologies in its modernization and infrastructure projects.

Peter J. Marks,
Member of the Bosch board of management responsible for environmental protection, manufacturing coordination and investment planning  as well as the regions North and South America