Bosch is planning to set up a company to offer engineering services to third parties, including competitors.
The operation will be based at a new research and development center in Abstatt, Germany, near Stuttgart.
Bosch CEO Hermann Scholl said that he expects outsourced engineering services to grow faster than the automotive industry as a whole.
To avoid conflicts of interests with other Bosch operations, the new business will not be placed under an existing automotive division. Instead, it will report directly to Bosch top management.
Bosch expects its technological strengths and reputation will allow the business to be built up rapidly over the next two to three years. However, Scholl did not set a target sales level.
The operation will also offer engineering services to other Bosch divisions.
In the past Bosch has sold engineering development software to third parties, including competitors. But the business has been small and narrowly focused with total sales of about A20.2 million.