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More efficiency, more connectivity: Bosch is enhancing the utility of commercial vehicles and growing much faster than the market
Presentation by Wolf-Henning Scheider,
member of the Bosch board of management
responsible for the Automotive Group,
at the press conference on September 23, 2014,
at IAA Commercial Vehicles in Hannover
- September 23, 2014
- Mobility Solutions
Commercial vehicles fitted with cruise control move at a constant speed – developments in the commercial vehicles business, by contrast, tend to be not as smooth. Currently, this business is developing very dynamically at Bosch. Three things characterize our business: efficiency, connectivity, and growth. My talk today will address all three.
- First, there is still considerable potential to reduce the operating costs of trucks, transporters, and buses. We can do this both with conventional and new drive systems.
- In addition to this, we are networking our systems. Not only are we doing this inside the vehicle, we are also taking the cloud to the streets. We are developing new services via the internet.
- In so doing, we are making commercial vehicles even more useful - and this is also benefiting our own business. At the moment, we are growing particularly fast. Global commercial vehicle production is expected to expand between 2 and 3 percent this year. At Bosch, our sales in this segment are set to increase more than 10 percent. Our growth in the truck and bus market is in the fast lane.
Let us first stay on the topic of our business development. Bosch Automotive Technology makes a quarter of its sales with equipment for trucks, vans, and buses, and half its sales with diesel systems. As a result of the dynamic growth in our commercial-vehicles business, the business sector is developing significantly better than the market. In 2014, we expect Bosch automotive technology sales to grow by 7 to 8 percent. At the same time, global automobile production will see 3 to 4 percent growth. The positive state of our business is reflected in our headcount: By the beginning of 2015, our Automotive Technology business sector will employ a good 193,000 associates, almost 13,000 more than at the start of 2014. This increase will mainly take place in Asia.
In particular, demand from China is giving our commercial-vehicles business an extra boost, especially in the area of diesel systems. This is largely attributable to the China4 emissions standard, which calls for electronically controlled high-pressure injection and exhaust gas treatment systems. Bosch is well prepared for this development. Our technology for trucks and buses is helping cities like Beijing and Shanghai reclaim their clean air. This year, we expect to sell twice as many common-rail systems in the Chinese commercial-vehicle market as in 2013.
Demand for our diesel systems is also high outside of China. This year, we will be delivering almost a million Denoxtronic exhaust-gas treatment systems worldwide to the truck sector – the first time we have done so. Moreover, unit sales of our common-rail systems for commercial vehicles are developing very encouragingly across the globe. These systems are installed not only in trucks, vans, and buses, but also in off-highway vehicles such as tractors and construction machinery. We are preparing for stricter emissions standards here as well. Diesel systems are not the only thing we supply to the off-highway segment. We also offer large starters and generators, as well as the mobile hydraulics of our Bosch Rexroth subsidiary.
Our portfolio for commercial vehicles of all types is broad, as is our global presence. And we continue to expand this presence. We already manufacture diesel systems for commercial vehicles in seven countries: the United States, Brazil, Germany, the Czech Republic, Japan, India, and China. This year, will be adding another Chinese location to this manufacturing network. When it comes to the Asian growth market, we are developing special solutions. Our lubricated common-rail pumps, which are robust even in the event of lower-grade fuel quality, are a strong example. We developed this product in China, for China, but also for Russia and India.
In addition, we are stepping up our innovative capabilities. Over the course of this year, our Automotive Technology business sector will see its research and development workforce grow from almost 35,000 to more than 37,000 associates. Of these, 19,000 will be located in Europe, 2,000 in the Americas, and 16,000 in Asia-Pacific. This team is coming up with innovations for the efficient and connected commercial vehicles of the future.
More efficiency: fuel savings with conventional and new powertrains
The currently good development of our business is one thing I wanted to talk about. Another is efficiency, and in the first place fuel savings and climate protection. One percentage point at a time, our engineers are working on further reducing the fuel consumption and thus also the CO2 emissions of trucks and buses. This is technology “Invented for life,” technology that clearly reflects Bosch's strategic imperative. It is a green technology that pays off, in economic terms as well. Logistics companies notice its value in their books. Overall, our measures can reduce the fuel consumption of commercial vehicles another 15 percent by the end of this decade. At current fuel prices, this will mean a reduction in operating costs of 10,000 euros per truck each year for vehicles driving an average of 135,000 kilometers.
With our new CRSN3-25 common-rail system, we have already reduced fuel consumption by 1 percent. This amounts to savings of almost 700 euros per truck each year. It offers high-tech in two ways:
- First, with leakage-free injectors, which prevent even the smallest drop of fuel from being returned unused into the rail.
- Second, with injection pressure of 2,500 bar, which enables the fuel mixture to be so finely adjusted that the system can flexibly employ exhaust-gas treatment or recirculation as needed. This allows us to deliberately save AdBlue.
All this is the result of the deep systems expertise that our engineers bring to the table. It should be noted here that we can only design the full system so flexibly because we also offer all the necessary components, from sensors and injectors to Denoxtronic. When it comes to technology for diesel commercial vehicles, we are the global market leader and a full-service technology provider. And we can improve efficiency and emissions with two additional levers.
- With our Bosch Mahle Turbo Systems joint venture, we have been offering exhaust-gas turbochargers for commercial vehicles since 2012. The activities of this joint venture focus on our diesel business. The aim is also to deliberately address the needs of truck manufacturers. Its range of turbochargers covers engines delivering between 30 and 520 kilo-watts. In other words, they are just as suitable for small machines as for heavy trucks. And this year, we are opening a new turbocharger plant in Shanghai, so that we can serve Asian customers from a local manufacturing base.
- With our Bosch Emission Systems subsidiary, we offer full exhaust-gas treatment packages - solutions that can be tailored to special vehicles. This business is growing as a result of increasingly strict emissions standards for off-highway vehicles. And demand is also growing in the conventional truck segment. To meet this demand, we are expanding our plant in Neunkirchen, Germany.
- First, we offer powertrain technology for natural gas, an alternative fuel that is especially affordable and less CO2-intensive. Here, too, we offer a full portfolio of products that includes control units, sensors, and injection valves. Infrastructure is currently growing with the market, for instance with gas service stations along long-haul routes in the United States, or with local networks in China. As early as 2015, Bosch will fit almost 50,000 commercial vehicle engines with natural gas drives – twice as many as in 2014. In the long term, the exploitation of large gas reserves will support growth in China and North America. Globally, the number of trucks and buses running on CNG will increase by an annual average of 13 percent between now and 2020.
- Second, we are working to electrify powertrains for commercial vehicles. To this end, our EM-motive joint venture will also produce electric motors that are designed for use in trucks as well. By the end of the decade, we aim to develop an electric hybrid for trucks that will pay for itself within two to three years. With a hybrid solution, the fuel consumption of heavy-duty vehicles on long-haul runs can be reduced by as much as 6 percent, while the figure for vans on delivery runs is between 10 and 15 percent. As a result of their higher mileage, long-haul trucks fitted with an electric hybrid can significantly reduce their operating costs by up to 4,000 euros per truck each year.
- And third, using engine heat recovery allows a 5 percent decrease in the fuel consumption of commercial vehicles. Here, too, we expect the corresponding solutions to be market-ready by the end of the decade. It's important to note that heat recovery reduces fuel consumption in instances where the electric hybrid's strengths come less into play: at constant speeds over long distances.
There are many ways to make commercial vehicles even more useful, and our approaches complement each other. This will become even clearer when we network our systems. Which brings me to my third main topic. Initially, connectivity is increasing inside the vehicle, and already allows us to significantly increase efficiency.
- My first example is our generator which interfaces digitally with the engine control unit. It can be adjusted based on driving status: it charges during braking and coasting, and turns itself off when the vehicle accelerates. This reduces fuel consumption by 1 percent. Bosch is the first supplier to offer such an intelligent generator for commercial vehicles. With it, we have set a market trend. By the end of the decade, the installation rate will have risen from 3 to 20 percent.
- The second example is our “Eco.Logic Motion” system, which we took into series production just two years ago. Using an electronic horizon based on navigation data, it calculates an efficient driving strategy for the vehicle's engine management and transmission control systems. From accelerating ahead of gradients to avoiding unnecessary gearshifts, the technology reduces fuel consumption by 5 percent on average. Customers have even reported savings of up to 9 percent, depending on the topography.
Above all, we are taking advantage of connectivity to come up with new, service-oriented business models. All divisions across the Bosch Group are working together here. Our broad knowledge of the industry allows us to come up with new services and benefits on the internet of things. Here at the IAA, we are showing a number of solutions that are specially tailored to the needs of the commercial vehicle and logistics sector, as well as those of OEMs and fleet operators. To give three examples:
- First, using data from the vehicles' control units, logistics companies can monitor wear and tear in their fleets via the internet. As a result, maintenance and repairs can be planned at an early stage. We are standardizing this type of fleet management with leasing and insurance companies. It is also suitable for the logistics industry. For instance, our service can prevent a truck fully loaded with frozen goods from unexpectedly breaking down somewhere along the way.
- Second, we use the internet to ensure the safety of such deliveries. We can do so using an e-call solution, for example, or by monitoring trailers via their GPS position. It is becoming increasingly difficult to find secure parking spaces for trucks along highways. We're offering a new solution to remedy this problem: an online reservation system that makes it possible to book parking spots at truck stops. The next step is planned for the coming year: the video surveillance of these premium parking spots. We will be delivering the camera systems and our security centers will be monitoring the video images. We refer to this service package as “Bosch Secure Truck Parking.” With it, we are creating a virtual protective fence for valuable cargo.
- Third, we are broadening the electronic horizon of our “Eco.Logic Motion” system via the cloud. This means, for example, that the engine management and transmission control systems not only adapt to the topography and geometry of the road network, but also to speed limits and road works. Last but not least, we also connect these systems with a warning that signals the tail end of traffic jams. All this means that we are optimizing drive and transmission technologies on the basis of real-time information.
Growth through savings: the basis for success
Our solutions are designed with the driver in mind. Above all, they are designed to ease his workload. Whether under the hood or at the wheel, efficiency comes first for us. From drive technology to connectivity, the objective behind all our innovations is to increase efficiency. We are aware that economical solutions play an especially important role in the commercial-vehicle segment. Such solutions have driven our success as a supplier in industrialized countries, and especially in emerging markets. Ultimately, another reason we are growing is because we help our customers save money.
Bosch commercial-vehicles business grows by more than 10 percent
Efficiency and connectivity
Bosch commercial-vehicle technology at the IAA 2014
Economical networking solutions, from diesel
technology to hybridization
Click here to find further information
Der Auftritt von Bosch auf der 65. IAA Nutzfahrzeuge in Hannover (Halle 17, Stand B12) steht vor allem im Zeichen der Effizienz. Mit smarten Lösungen machen wir den klassischen Antrieb für Nutzfahrzeuge nicht nur sauberer, sondern vor allem immer sparsamer. Mit Technologien für alternative Antriebe und Kraftstoffe hat Bosch auch die Zukunft fest im Blick. Daneben zeigen wir, wie wir durch die interne Vernetzung der Fahrzeugsysteme und durch die Verbindung mit dem Internet helfen können, die Logistik zu vereinfachen und den Nutzen des Lkw weiter zu steigern.
RF00232 - September 23, 2014