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Bosch: No Upturn for Europe’s Auto Market Until 2020
Robert Bosch GmbH predicts that Europe's auto industry will struggle with a stagnant market until 2020.
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Robert Bosch GmbH predicts that Europe's auto industry will struggle with a stagnant market until 2020.
Wolf-Henning Scheider, who heads Bosch's automotive operations, tells Automobilwoche the company has capped R&D budgets to help maintain earnings. He also anticipates no cuts in capacity in Europe. He says Bosch will attempt to avoid layoffs by capturing new business to offset declines elsewhere.
The operating margin for Bosch's automotive group fell from 8.3% in 2010 to 7.7% in 2011 and 4.5% last year.
The group's vehicle technology division contributes about 60% of Bosch's total automotive revenue. Scheider predicts the unit will post an operating margin of 8% in two years. But he declines to say when the entire group's result will be that strong.
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