Mobility Solutions

Information about the planned realignment of the Starter Motors and Generators division

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  • July 02, 2015
  • Mobility Solutions
  • Press releases

press release

The Bosch Group is planning to realign its Starter Motors and Generators division and to seek a partner for a joint venture or a buyer. Together with a partner or a new owner, the division will have long-term prospects of growth and development.

Reasons for the planned realignment
The market for starter motors and generators is extremely competitive and cost-driven. There is also considerable overcapacity in the market. The already existing cost and competitive pressure will become even tougher. As a result, many companies will go out of business. And to survive the anticipated shake-out in the market, the Starter Motors and Generators division has to reach a leading global position in the market. For this, it needs to be a sufficient size. Only in this way can it remain successful in the market over the long term. With a partner or new owner, moreover, consolidation effects can be achieved and costs reduced.

Progress made up to now will not be enough over the long term
The Starter Motors and Generators division has successfully managed to transform itself over the past few years. However, the progress made so far is not enough for the business to have a successful future. The losses of past years run into many hundreds of millions of euros. The division is now performing soundly. In recent years, it has improved its competitiveness by making its structures simpler and more flexible, among other things. The division also has technically and commercially competitive products, but these products do not stand out sufficiently from rival ones. Then there are the additional challenges resulting from technological trends such as downsizing and electrification. These trends will mean a change in value-added and market potential.

The starter motors and generators in the global market
Over the past five years, the Starter Motors and Generators division has been unable to significantly increase its market share. It has not managed to close the gap on the top players in the market. And while the Starter Motors and Generators division is one of the leading suppliers in Europe, it is at a clear global disadvantage with regard to its regional presence, especially in the growth markets of Asia and North America. In recent years, the division has grown strongly in Asia and North America. However, its market shares are still not as big as those of its competitors. In both Asia and North America, its market shares are small. In 2014, it generated only roughly one-quarter of its total sales in Asia, for example. Especially in Europe, where the division generates more than half its sales, the division is struggling with a drastic fall in prices. In some product areas, prices have fallen by just under a quarter since 2011.

The next steps
As a first step, the division is to be carved out and made a legally independent entity by the end of 2015. In addition, the quest for suitable partners and potential buyers will continue. All these steps will be taken in close and frank consultation with the employee representatives.

About the Starter Motors and Generators division
The Starter Motors and Generators division generated sales of 1.4 billion euros in 2014. For passenger cars and commercial vehicles, the Starter Motors and Generators division develops and manufactures starter motors and alternators that play an important part in reducing consumption. Its products include the start-stop system, highly efficient generators, and machines for the boost recuperation system (entry level hybrid). At 13 manufacturing sites and multiple sales locations worldwide, the division employs around 6,500 associates, some 1,400 of them at its German locations in Hildesheim and Schwieberdingen. Outside Germany, there are locations in Brazil, China, Hungary, India, Mexico, South Africa, Spain, and the United States.

Further information
Announcement of plans to realign the Starter Motors and Generators division

Videos and photos
- Starter Motors and Generators footage
- Photos

Contact persons for press inquiries:
René Ziegler
Phone: +49 711 811-7639

The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). The company generated sales of 70.6 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing and sales network covers some 150 countries. The basis for the company’s future growth is its innovative strength. Bosch employs 55,800 associates in research and development at 118 locations across the globe. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

Additional information is available online at www.bosch.com and www.bosch-press.com, http://twitter.com/BoschPresse.

PI8976 - July 02, 2015

Your contact person for journalists

René Ziegler

+49 711 811-7639 Send Email

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