Consistently high levels of investment in research and development
Innovations that bring real benefit and increase quality of life
Stuttgart/Munich – Dr. Christof Bosch has been awarded the 2013 Diesel Medal for “Outstanding contribution to innovation” on behalf of the Bosch Group. This medal was awarded by Germany's Institute for Inventions (Deutsches Institut für Erfindungswesen) in recognition of the exceptional technological leadership and innovative strength apparent across so many areas of the company, as well as the sheer ingenuity demonstrated by this leading global supplier of technology and services. The award was presented in the Hall of Fame at the Deutsches Museum in Munich, Germany's premier technology museum, by the chairman of the institute, Dr. Heiner Pollert, and the chairman of the Diesel Medal board of trustees, Prof. Alexander Wurzer. Christof Bosch was joined by four of Bosch's 2013 “Inventors of the Year” in accepting the award on behalf of the over 42,000 researchers within the Bosch Group.
There is a long tradition of innovation at Bosch. The company lodged its first patent in 1897, and by 1909 there was already a department dedicated to patents, brands, and licenses. It is a history that has made itself felt in the public consciousness: “Bosch is a stalwart of the German industrial scene. For the German automotive industry, Bosch has been – and remains – a crucial technological partner that is at the very forefront of ground-breaking developments. The award of the Diesel Medal for outstanding contribution to innovation recognizes the top spot Bosch has occupied for so many years. And given my responsibility for development as a member of the management board at BMW AG, it is something that gives me particular pleasure,” said Dr. Herbert Diess in his tribute to Christof Bosch.
Bosch corporate constitution proves its worth “Robert Bosch GmbH's special ownership structure guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant upfront investments to safeguard its future,” said Christof Bosch at the Diesel Medal award ceremony. “I am delighted that our researchers' innovation has been brought to the attention of a wider audience and rewarded with this Diesel Medal.”
“In a series of guidelines, as he called them, Robert Bosch set down his tenets for successfully managing a company,” Christof Bosch continued. “Here he says that a company should in fact serve the community – that what benefits business and what benefits society are two sides of the same coin.” Today, these principles live on in the twin institutions of Robert Bosch GmbH and Robert Bosch Stiftung. The company is now continuing along the path of dynamic development that Robert Bosch set out for it, while Robert Bosch Stiftung fulfills his vision of social engagement for the common good. Including a foundation in the company structure is almost unique in Germany, and serves as a model for how to successfully continue a family business after the founder has died. It guarantees the autonomy of the company and allows it to pursue the “strong and meaningful development” its founder Robert Bosch would have wanted.
About Dr. Christof Bosch As the Bosch family spokesperson, Christof Bosch is a long-standing member of all the company's important governing bodies, which gives him a significant say in the direction the company takes. He is a member of the board of trustees of Robert Bosch Stiftung, a partner in Robert Bosch Industrietreuhand KG, and a member of the supervisory board of Robert Bosch GmbH. These wide-ranging functions give him a broad insight into all aspects of the company, allowing him to support the long-term and sustainable corporate strategy of the Bosch Group that his grandfather, the company founder Robert Bosch, would have wanted.
“60 years of the Diesel Medal” On the initiative of Eugen Diesel, the son of Rudolf Diesel, the Diesel Medal was launched in 1952 and awarded for the first time in 1953. It is Germany's oldest innovation prize, and is awarded by the charitable Deutsches Institut für Erfindungswesen. Now in its sixtieth year, the Diesel Medal helps to raise the public profile of inventors and innovative companies and to support their work.
SolarWorld plans to take over production of cells and modules
Second investor plans to manufacture pharmaceutical products at the Arnstadt location
Bosch intends to manufacture an automotive product in Arnstadt in the future
Realization of the entire concept subject to approval by the antitrust authorities as well as to other framework conditions.
Stuttgart/Arnstadt – Bosch plans to sell its Arnstadt manufacturing operations for cells and modules to SolarWorld AG. The buyer intends to employ roughly 800 associates. An agreement to this effect was signed today. A second investor plans to lease shopfloor space in order to manufacture pharmaceutical products under clean-room conditions. This would create roughly 100 jobs. A declaration of intent has already been signed.
Bosch intends to relocate the manufacture of an automotive electronic product from the Bosch location in Hatvan, Hungary, to Arnstadt, as well as to set up a service organization and a trading company for handling existing obligations. Over the medium term, this may preserve roughly 250 further jobs. The realization of the entire concept is subject, among other things, to approval by the antitrust authorities. The parties have agreed not to disclose any of the conditions of the agreement.
In the weeks ahead, Bosch and the investors still have to conclude extensive preliminary work. This includes the necessary negotiations with the employee representatives.
Solution for the Arnstadt location SolarWorld has drawn up a business plan for the Arnstadt plant that envisions a central, lasting role for the Arnstadt location as part of the SolarWorld group. Bosch will now quickly start negotiations with employee representatives to discuss the practical implementation of the plan. Earlier this year, it was possible to give the location’s 91 apprentices a guarantee that they could complete their training in other vocational programs, both within and outside Bosch.
“This makes it likely that we can offer jobs to roughly 1,100 of our presently 1,500 associates in Arnstadt. The negotiation process was a lengthy one. But if the deals are put into practice as planned, it will allow us to give a great majority of associates a perspective. We have invested a lot of time and considerable sums of money in making this possible,” says Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. “Instead of closure, our aim was to find purchasers with a viable industrial concept and a good reputation, and that take a long-term view that offers prospects for the future,” Denner says, explaining Bosch’s approach. “With today’s signing, we have reached an important milestone,” he adds. “However, various conditions still have to be satisfied before this solution can be put into practice. They include final signing with the investor from the pharmaceuticals industry and successful talks with employee representatives.”
Complex framework conditions In March 2013, Bosch announced it was ending its activities in crystalline photovoltaics. “In order to preserve as many jobs as possible, we cast our net wide in our search for an investor. We mainly looked for buyers involved solely in photovoltaics. In addition, we approached many companies from outside the industry. Within Bosch as well, we made great efforts to find products that could be manufactured in Arnstadt,” says Dr. Stefan Hartung, member of the supervisory board of Bosch Solar Energy AG and the member of the Bosch board of management responsible for the Energy and Building Technology business sector. In its search for a solution, Bosch received constructive support from the Thuringian state government and the Thuringian development corporation.
Further negotiations Attempts are being made to find comparable solutions for the module factory in Vénissieux, France. Bosch is holding talks with investors from the photovoltaics industry as well as other industries. Here too, Bosch is examining the possibility of manufacturing a product from a different division at the location in the future.
As already announced at the beginning of October 2013, the search continues for a buyer for the stake Bosch holds in its subsidiary aleo solar AG, based in Oldenburg and Prenzlau, Germany. It is also working with the directors of aleo to examine all the options available. These include the complete or partial sale of the operative business of the aleo solar group. Whether and when a transaction will come to a successful conclusion remains to be seen.
As already announced in March 2013, Bosch Solar CIS Tech GmbH in Brandenburg an der Havel, Germany, and Bosch Power Tec GmbH in Hamburg will continue to be run as before.
Fehrenbach: “The industry must remain innovative to avoid being left in the dust”
Globalization offensive in the automotive industry
Flexible and open solution to achieve CO2 targets
Berlin – Franz Fehrenbach, the chairman of the supervisory board of Robert Bosch GmbH, has called for the introduction of necessary reforms and the creation of a dependable regulatory and political framework to safeguard the country’s automotive industry. “If policymakers want to defend Germany’s export muscle and keep industrial jobs in the country, they have to continue to be courageous with reforms,” said Fehrenbach at this year’s Automobilwoche Congress in Berlin. The automotive industry in particular is facing big economic and technological challenges, he said, and these called for a concerted effort on the part of policymakers and industry leaders. Referring to the ongoing negotiations between conservatives and social democrats in Berlin to form a grand coalition at federal level, Fehrenbach said: “The coalition will be a truly ‘grand’ one only if it can successfully overcome the big challenges that are testing the country’s ability to tackle the future.”
Keep on innovating Fehrenbach emphasized the economic importance of the automotive industry for Germany. “Employing a workforce of just under 800,000, the German automotive industry is a compelling symbol of our country’s economic strength.” It was above all the automation, electrification, and connectivity of motor vehicles that posed big technological challenges, he pointed out. At the same time, Asian manufacturers were consistently enhancing their competitiveness and tapping new sales markets. Fehrenbach believes there is only one possible strategy: “This industry must remain innovative to avoid being left in the dust.”
Plenty more room for globalization As the European market looked unlikely to regain buoyancy in the medium term, Fehrenbach called on the industry to undertake a further globalization offensive. As early as 2016, he said, one in two motor vehicles would be sold in the Asia Pacific region and, by 2020, China’s share in global automobile production would rise from today’s 23 percent to 29 percent. “Even though we need to manufacture all over the world in order to be successful in the world’s markets, we must not lose sight of the key strengths of the German industrial hub – quality and innovative strength,” said Fehrenbach. But it is not only sales markets that are constantly shifting, he added. Asian automakers are also scaling up their sales offensive in promising markets such as Southeast Asia, South America, and Africa.
The move to alternative forms of energy and CO2 emissions legislation – two areas for action In Fehrenbach’s view, policymakers also bear responsibility for the future of (auto)mobility. They must, he said, implement the necessary reforms, such as the Vienna Convention on Road Traffic (a prerequisite for automated driving). Government also needs to ensure a reliable framework for business. Fehrenbach said that energy prices in particular would increaseingly become a burden on German industry. Electricity for industry in Germany must not become more expensive than in every other country, he said. “What we expect from the move to alternative forms of energy is not just that our power supply will become ‘green,’ but also that it will remain affordable and reliable.”
Fehrenbach demanded that the EU’s climate protection regulations and CO2 legislation deliver investment security and legal certainty. Only then, he said, will new efficient technologies be able to gain a foothold in the market and become more widespread. In this context, Fehrenbach advocated a flexible and, in technological terms, open solution, one that takes account of eco-friendly innovations outside the New European Driving Cycle and independently of vehicle size. “We need to continue stimulating innovation across all vehicle classes, for instance through bigger ‘super credit’ incentives for low-emission vehicles.”
Smart road network for tomorrow’s traffic Fehrenbach also spoke to the industry gathering of the need for more investment in a smart road network. “In the future, state-of-the-art vehicles will require a state-of-the-art infrastructure.” The vision of automated and hence accident-free driving will only become a reality if infrastructure as well as vehicles are smart and able to exchange data, he argued. Only then will it be possible to introduce smart traffic management in conurbations, for instance. At the same time, it will be possible to put a price on the valuable commodity of congestion-free driving based on time and route, he said. Fehrenbach identified further potential in smart road tolls: “An electronic toll system could be opened up to include additional services.” Fehrenbach explicitly expressed his opposition to increasing the financial burden on drivers though such a road toll.
Bosch annual report appeals best to target groups, gives best overall impression, and safeguards transparency
More than 90 assessment criteria
Private Public Award presented by high-caliber panel of judges on November 19
Frankfurt – In competition with the 250 most successful family- and foundation-owned companies, the annual report of Robert Bosch GmbH has won first prize in the “best annual report” category. Uta-Micaela Dürig, senior vice president of Corporate Communications, Brand Management, and Sustainability at Robert Bosch GmbH, commented: “The annual report is our business card, both internally and in our dealings with the outside world. The entire team can be proud of this award. We won't rest on our laurels, however, but will carry on in our tradition of continuously improving our annual report.”
Modern annual reports beyond the stock exchange The Public Private Award is given for the best examples of transparent communication by family- or foundation-owned companies. Of 250 annual reports, 50 were shortlisted – 40 of them family-owned and 10 foundation-owned. The companies' annual sales ranged from 0.8 to more than 50 billion euros.
Family-owned companies are the mainstay of the economy. Roughly 60 percent of all companies in the EU are family-owned. In Germany, this figure is far higher: more than 90 percent of all the country's companies are in family ownership. They generate more than 40 percent of the country's sales revenue and create just under 60 percent of all jobs. Interest in these companies is correspondingly high – whether from customers, associates and applicants, or the general public.
A sound assessment, thanks to more than 90 criteria To be the best, an annual report has to satisfy a number of strict criteria: Is the company's business situation reported in a transparent way? Is the report complete and logical? How well has the guiding idea been translated in the image part? Is there a logical graphic concept? Only the company that collects enough points in all categories will emerge as the winner. On the basis of a checklist containing more than 90 criteria, the annual reports are assessed in terms of content, language, structure, and design.
High-caliber panel of experts The Private Public Award was initiated by ergo Kommunikation and the accounting and tax advisory firm PKF Fasselt Schlage. They were supported by a high-caliber panel of judges:
Andreas Martin: partner and member of the management board, ergo Kommunikation, head of the Frankfurt and Munich offices
Dr. Martin Fasselt: partner, PKF Fasselt Schlage, Duisburg
Klaus Bietz: designer and art director
Dr. Lutz Raettig: chairman of the supervisory board, Morgan Stanley Bank AG
Prof. Dr. rer. pol. Katrin Stefan: professor, Kempten University of Applied Sciences
Thorsten Oltmanns: partner and global marketing director, Roland Berger Strategy Consultants GmbH
About the Private Public Award This is the fourth year the Public Private Award has been presented. Past winners have included B. Braun Melsungen AG, Franz Haniel & Cie. GmbH, Otto Group, Heraeus Holding GmbH, and Adolf Würth GmbH & Co. KG.