Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Suppliers
January 29, 2020 06:31 AM

Global auto production may have peaked, Bosch says

Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    STUTTGART -- Global automotive production may have peaked, Robert Bosch said on Wednesday, announcing job cuts and a review of its business to cope with a 44 percent drop in full-year operating profit and a downturn in demand for cars.
     
    Global automotive production is expected to fall for the third consecutive year, by 2.6 percent to 89 million vehicles in 2020, following a drop in demand in China, Europe and the U.S., the supplier said.
     
    "It could well be that we have passed the peak of automotive production," Bosch CEO Volkmar Denner said.
     
    He also said he assumed the low level would remain constant and did not expected an increase in global automotive production before 2025, while the market would shrink by 10 million units in 2020 compared with 2017.
     
    Bosch said its full-year earnings before interest and taxes (EBIT) fell to 3 billion euros ($3.33 billion) in 2019, a 44 percent drop from 5.4 billion euros in the year-earlier period and its EBIT margin contracted to 4 percent from 7 percent because of lower demand in China and India.
     
    Total revenue was stable last year, at 77.9 billion euros, as Bosch benefited from increased complexity in vehicles, which allowed it to sell more components and systems per vehicle produced.

    Revenue from Mobility Services, Bosch's largest division, was flat at 47 billion euros. By region, sales in Europe were stable at 41 billion euros; sales in North America were down 0.5 percent to 13 billion euros; and South America was up by 5.3 percent to 1.4 billion euros. Sales in the Asia Pacific region fell by 4.5 percent to 22.5 billion euros, with growth in Japan and Southeast Asia unable to offset market declines in China and India, Bosch said.
     
    A shift to electric cars is expected to create opportunities longer term, but will impact jobs in the near term, Denner said.

    Ten workers are needed to make a diesel injection system, three for a gasoline system, and one to produce an electric motor, he said.
     
    As a result, Bosch has said staff adjustments will be made where necessary, including shorter working hours, voluntary redundancy and severance packages, although Bosch declined to provide a global figure for headcount reductions.
     
    Already last year, Bosch reduced its headcount by 6,800 to 402,800, with 2,000 jobs cut in Germany and 3,600 positions reduced in the Asia Pacific region.
     
    Bosch hopes to exceed 1 billion euros in sales from electric car components this year, and has set aside 500 million euros for investments in electromobility for 2020, Denner said.
     
    Bosch will also start production of long-range LIDAR, a new sensor category, and begin production of hydrogen fuel cells in 2022.

    Bosch ranks No. 1 on the Automotive News Europe list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $49.5 billion in 2018.

    RECOMMENDED FOR YOU
    Dolby, Dirac looks to expand immersive audio solution beyond Nio
    Recommended for You
    Nio Et7 interior
    Dolby, Dirac looks to expand immersive audio solution beyond Nio
    Marelli Japan
    Marelli enters court-led rehabilitation
    Veoneer on stock board
    Veoneer being prepped for sale, sources say
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us