At the International Motor Show in Frankfurt, Franz Fehrenbach, chairman of the Bosch board of management, explained how the worst economic slump in decades is affecting the Bosch Group and described the structural challenges facing the automotive industry in the years ahead. Protecting the environment and conserving resources are already top priorities of Bosch innovation policy.
Bosch Group sales are forecast to fall by some 15 percent this year, possibly by as much as 20 percent in the automotive technology sector. As a consequence, the operating result will be well in the red. At the end of 2009, the Bosch Group is set to have some 270,000 associates, 10,000 fewer than at the beginning of the year. Over the same period, the headcount in automotive technology will fall from 168,000 to approximately 160,000. However, thanks to the flexible approach that Bosch has taken with regard to the downturn and its short-time working concept, these personnel adjustments are moderate compared to the overall decline in business volume. Although there have recently been signs of a slight recovery, albeit still at very low levels, it is clear that the scene is set for a paradigm shift in the automotive industry in the years ahead. “While the worst of the economic turbulence seems to have passed, the structural challenges that our industry faces are becoming ever clearer,” said Fehrenbach.
Ever stricter demands imposed worldwide on environmental protection and accident prevention, the development of new drive concepts, and the shift in growth to the emerging markets are just a few of the developments that will shape the structural changes of the future. What’s more, it could take until 2012 before the automotive industry regains the levels of 2007, i.e. pre-recession. This means that for some years to come, Bosch too expects continued under-utilization of its capacities. “The automotive industry as a whole must find suitable responses to these challenges, and Bosch is determined to play its part in doing so. Above all, the issue of climate protection must and will unleash a new wave of innovations,” emphasized Fehrenbach. The electrification of the drive system will also lead to structural changes. Electrification is vital in the face of climate change and shrinking oil reserves. Of course, this change won’t come about in the blink of an eye, but Bosch expects to see three million electric cars and plug-in hybrids on the world’s roads by 2020.
Environmental protection and resource conservation are major fields of innovation for Bosch. In automotive technology, every second euro the company spends on research and development goes toward achieving these two aims. In doing so, Bosch intends to expand its existing areas of innovation and to carve out new ones along the way. A dedicated business unit has been set up to advance electric drive technology, where some 500 engineers will be working by the end of 2009. Hybrid technology is set to go into series production in 2010. And from 2011, Bosch wants to have its lithium-ion battery technology up and running on the roads. To this end, Bosch has set up a joint venture, SB LiMotive, with Samsung SDI. The company has already gained its first customer for this venture with BMW’s “Megacity Vehicle” project. A further milestone was reached recently with the ground-breaking ceremony for a new plant in Korea for making lithium-ion battery cells for cars. The first phase of construction is due to be completed by the end of 2012. Then, Bosch will be in a position to manufacture a minimum of 125,000 battery cells for hybrid and electric vehicles per year.
