German auto parts supplier Bosch has announced that in 2009 the Bosch Group's global sales of 38 billion euros, down 16% year-on-year. Among them, Bosch Automotive sales were 21.7 billion euros, down 18% year-on-year. Bosch CEO Fehren Bach said that due to the financial crisis in 2009, global automotive demand fell and Bosch suffered its first loss since its establishment in 1945, but Bosch will strive to achieve balance in 2010.
I am afraid that Bosch's balance of payments this year will depend to a large extent on the rise of the Asian market. In 2009, the Asian market surpassed the North American market for the first time, becoming Bosch's largest sales region. Compared with the continued weakness in the global economy, Bosch's performance in China has made Fehrenbach "surprised." In 2009, Bosch’s sales in China are expected to increase by 15% year-on-year to 2.6 billion euros.
China is a top priority
Bosch said in a statement recently that Bosch will invest 400 million U.S. dollars in India in the next two years to meet the rising demand of the Indian diesel engine market. India is only Bosch's third largest market after China and Japan.
Compared with other markets, from 52 million euros (4.9 billion yuan) in 2003 to about 290 million euros (3 billion yuan) in 2008, Bosch has increased its investment in China by nearly six times.
It is very wise for Bosch to have such a choice. In 2009, China's automobile production and sales were ranked first in the world with 13.797 million and 13.64 million automobiles respectively, an increase of 48.30% and 46.15% respectively. In the context of the global financial crisis, the annual growth rate of nearly 50% is hard to imagine for any market in the world.
"In the future, the growth rate of China's auto market will remain at 10% to 20%," said Ferienbach. The automotive business accounts for about 50% of Bosch's business in China, and profit is the largest among the three major businesses.
Although the global economic downturn has slowed Bosch's investment in other regions, investment in China remains the same. Even in the global economic downturn in 2008, Bosch still invested approximately 290 million euros (about 3 billion yuan) in China. Fehrenbach revealed that although Bosch will lay off 10,000 people, Bosch China will not lay off employees. Bosch currently has more than 20,000 employees in China and has become the country with the largest number of employees except Germany. At the same time, he also predicted that Bosch will return to its pre-economy situation in 2012.
Already working with OEMs, the new energy vehicle, Philip Brunbach, calls "development of future electric vehicles" the top priority. According to reports, Bosch will jointly establish a power drive and hybrid power business unit with SAIC Motor Co., a joint venture with SAIC. It will specialize in powertrain electrification projects. By the end of this year, 35 engineers will be stationed. The number of engineers may increase to next year. 100 people.
According to the reporter, Bosch's hybrid technology will also be mass produced in 2010. However, Fehrenbach also pointed out that the current cost of batteries is still very high and it is difficult for mid-size car users to bear, and Bosch is working to reduce the cost of electric vehicles by one-third.
Feirunbach said that in the transition phase to the development of electric vehicle technology, Bosch will spare no efforts to improve the traditional transmission technology, and further optimize the internal combustion engine technology to reduce its fuel consumption by another 30%. According to reports, at the Beijing Auto Show next year, Bosch will have three or four models with an idle start-stop system installed. This system can quickly reduce fuel consumption. China's demand for technology renewal is faster than Europe. Summing up Bosch's successful experience in China for one hundred years, it is fundamental to unswervingly achieve localization. The Chinese market cannot, like Europe, engage in independent research and development, and cannot simply move the technology developed in Europe to China. It must base its research and application on the local market according to the special needs of the Chinese market.
“Without the support of local customers, employees and partners, Bosch could not achieve its success in China today.†Fehren Bach said that China’s demand for and acceptance of technology updates is faster than in Europe, such as the brake program, which began in 2009. The introduction of China will require production in 2010, which takes three years in Europe and only one year in China.
It is reported that Bosch has established 25 production bases, 4 automotive technology R&D centers, and a winter testing ground in China. The localization rate of new generation ABS products to be launched in 2010 will be as high as 85%. From the economic common rail system CRS1.3, the Bosch airbag electronic control unit, to the starter/starter starter... numerous products specially designed for the Chinese market confirm Bosch's unremitting efforts in localization over the years.
The rise of new energy
"The business of saving resources and reducing emissions will be Bosch's business focus in China," Ferienbach told reporters at the same time. The industrialization of new energy and power is beginning to show itself. In 2009, Bosch took out 160 million euros (about 1.5 billion yuan) to invest in new energy power and related fields.
Since the establishment of Bosch's first sales office in Asia in Shanghai in 1909, its business in China has continued to develop steadily. Currently, Bosch has more than 20,000 employees in China and has become the country with the largest number of employees in addition to its headquarters in Germany.
Fehrenbach said: "China's market potential for technological innovation in resource conservation and energy efficiency is encouraging us. We are committed to fully exploiting the huge potential of renewable energy. We will continue to provide localized products at reasonable prices and The ever-increasing quality meets the needs of the local market.â€
It is reported that since the end of 2008, Bosch Rexroth has provided 500 wind turbine gearboxes for Chinese customers since the opening of a new wind power technology production base in Beijing. The output power of a wind turbine generator is 850 kilowatts, which can provide sufficient electricity for 450 ordinary Chinese families. In November, gearboxes for 1.5 MW and 2 MW wind turbines will be put into production.
Feirunbach told reporters that Bosch is also expanding its business in the solar field. Its newly established global division aims to fully develop and utilize solar energy resources and seek technical answers for these complex problems. Fehrenbach said, “We see potential opportunities for cooperation in many areas of the Chinese market and we also expect to contribute our advanced technologies.â€
Fehrenbach said that today's Asian and Chinese markets have played an increasingly important role in the recovery of the global economy. The market in this region has particularly strong demand for innovative technologies to improve safety and comfort, conserve resources, and protect the environment.
The development of future electric vehicles will be one of Bosch's major tasks in China. Feirunbach believes that excessive battery costs hinder the promotion of electric vehicles. The cost of a 35-kilowatt electric car battery is 10,000 euros. For middle-class car buyers, such prices are obviously not economical. "The battery cost of an electric car is at least 1/3 before it is likely to gain market acceptance," Fehrenbach expressed his views to reporters.
Currently, Bosch has strengthened its R&D work on alternative automotive transmission systems. By the end of 2009, about 35 engineers will be in the electric drive and hybrid power business unit of the joint venture of Bosch and SAIC Automotive Electronics Co., Ltd., specializing in powertrain electrification projects. In the near future, the number of engineers will increase to about 100.
In the transition to the development of electric vehicle technology, Bosch will further increase the traditional transmission technology. This is not just because of price and availability. By further optimizing the internal combustion engine technology, the fuel consumption of the internal combustion engine can be reduced by another 30%.
Fengde Mechanical & Electrical Manufacturing Co., Ltd. , http://www.dieselgeneratores.com