Despite Recession Scars, Bosch Sees Itself Well Positioned for the Future

German automotive technology supplier Bosch admits the recession has left a clear mark on its results. For 2009, the Bosch Group expects sales to decrease by 15 per cent, to some 38 billion euros. In its automotive businesses, the decline in worldwide sales will be as much as 20 per cent at year-end. Yet following the deep recession, Bosch Automotive Group chairman Dr. Bernd Bohr sees clear signs that the automotive business’s situation has stabilised. Orders have begun to improve and during the past few months Bosch has acquired major new projects. This is expected to support the company’s growth in the coming years. However, Bohr cautioned “it could take us until 2012 to return to the pre-recession levels of 2007."

Despite the years needed to climb back to where the company stood two years ago, Bosch expresses confidence it is “well prepared” to meet the challenges ahead. The company reports a continued focus on the future; the future of its own technology and also on where future business growth lies. “This year the Tokyo Motor Show is taking place in a period of transition,” noted Dr. Bohr during a recent press conference. “By 2035, the world’s passenger car fleet is set to double. And the majority of new cars will hit the roads in India and China.” Bosch believes that, in order to secure the automotive industry’s long-term success, vehicle manufacturers and suppliers must in the future balance their attention between mature and emerging markets.

This shift to emerging markets, the technology supplier believes, will be accompanied by several structural changes that will require vehicle manufacturers and suppliers to rethink their strategies. The greater demand for smaller, more affordable cars will be one of these changes. And further reducing the fuel consumption and CO2 emissions of vehicles is also gaining importance. For example, the work undertaken by Bosch engineers in anticipated to lead in the medium term to diesel engines that consume 30 per cent less fuel. And Bosch believes that, because of its availability and affordability, the diesel engine is set to see strong growth in Asia’s emerging markets, with particular success in India.