The EU is a successful project. We are disappointed by the decision to take the UK out of the world’s largest single market, not only for economic reasons. The long-term economic consequences will only become apparent gradually.
We are currently examining the effects of leaving the EU on our business. In addition, we have already put precautionary measures in place. For example, we have significantly raised our hedging ratios in order to counteract a possible depreciation of the British pound. We currently do not have any plans to scale back our capital expenditure in the United Kingdom.
At present, it is too early to comment on the possible consequences. As we are traditionally well represented in many European markets, we will likely be less affected than companies that use the UK as a base into Europe.
Bosch in the United Kingdom Bosch has been active in the country since 1898. With sales of some 2.7 billion pounds (3.7 billion euros) in 2015, the U.K. is currently Bosch’s second largest European market after Germany. In total, Bosch employs some 5,300 associ-ates at 40 locations (including seven manufacturing locations) in the United Kingdom. All four business sectors – Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology – have operations there.
Focus on collaboration with scientific institutions and start-ups in fields such as machine learning, robotics, cybersecurity, connectivity, and IoT
Denner: “In per capita terms, no other country is as innovative as Israel, and few cities can match Tel Aviv for the number of start-ups set up there”
Robert Bosch Venture Capital office in Tel Aviv provides capital to start-ups from the technology industry
Bosch products have been available in the Israeli market since 1965
Stuttgart and Tel Aviv – First Silicon Valley, now Silicon Wadi: The Bosch Group wants to step up its operations in Israel. The supplier of technology and services recently established a research and technology office in Tel Aviv, the leading start-up metropolis. Its associates aim to work more closely with scientific institutions and universities and, at an early stage, to identify innovative start-ups working in fields such as machine learning (deep learning), robotics, cybersecurity, connectivity, and the internet of things (IoT).
There are thousands of start-ups in Israel, most of them in Tel Aviv and its environs. With more than 400,000 inhabitants, Israel's second largest city is also the country's business and economic hub. Many companies and research institutes have offices there. “Pioneering spirit, world-class universities, and creative ideas – they're all here. It's just the right environment for groundbreaking innovations, and thus for Bosch as well,” says the Bosch CEO Denner, who is currently on a multi-day business trip to Israel. “The country has a lot of scientific and technological potential in many areas that are important for our company's future, and we want to take advantage of that.”
Denner is especially enthusiastic about the innovative strength of this small country with its roughly nine million inhabitants. “Israel is a highly developed business location. Relative to its population, no other country is as innovative. Few cities can match Tel Aviv for the number of start-ups set up there. Lots of things are possible here,” Denner says. He adds that he is especially curious to get to know the start-up scene in Tel Aviv, which he believes will be a source of new inspiration. He is also looking forward to meeting with leading research institutes, and discussing possible alliances. His agenda includes meetings with various start-ups and a visit to the Weizmann Institute of Science, which carries out basic scientific research in Rechovot, south of Tel Aviv. The institute is one of the world's leading interdisciplinary research centers. Denner will also be meeting with representatives of the Technion – Israel Institute of Technology. Founded in 1912, the Technion is the country's oldest university. It is located in Haifa, Israel's third largest city.
Bosch is investing in start-ups Robert Bosch Venture Capital GmbH (RBVC) also has an office in Tel Aviv. The company provides capital to start-ups from the technology sector, whether in the form of direct investment or indirectly via investment funds. Based in Stuttgart, RBVC has made 420 million euros available for start-ups. Currently, the Bosch Group's venture capital subsidiary has investments in some 30 companies worldwide, five of them Israeli start-ups. “For us, RBVC is an early warning system. It prevents us from being taken unawares by new, groundbreaking technologies that can completely disrupt a market,” Denner says. By investing in promising start-ups, RBVC gives Bosch early access to disruptive innovations. Through open innovation, it fosters collaboration between the company and start-ups.
Israel as an attractive market for Bosch During his Israel trip, Denner will also be meeting with Bosch's long-standing sales partner Ledico, which has been marketing the company's products in the country since 1965. “Israel is also a very attractive market for our products. Thanks not least to open trade and its innovative start-up scene, the market is developing dynamically,” Denner says. He adds that the country's per capita gross domestic product (GDP) is among the highest in the region, and that its population is young, with an average age of 30. A strong middle class, high purchasing power, and a high level of education also play a role in Israel's positive development. Last year, Bosch generated sales of more than 120 million euros in Israel, with prospects for further growth in the years ahead.
Contact person for press inquiries: Melita Delic Phone: +49 711 811-48619
Asia Pacific head Peter Tyroller: “Indian market offers immense growth opportunities for Bosch”
2011-2015: Bosch invested more than 680 million euros in India
Dual education offered by Bosch in Bangalore for 55 years now
Bosch offers many software-related jobs in India
Düsseldorf/Mumbai – Dynamic growth in India: forecast economic growth of around 7.5 percent in 2016 as well as reforms and other government programs make the country a global growth driver. This momentum is also benefiting Bosch, the leading global supplier of technology and services. “Our business in India developed very well in the first quarter of 2016,” said Peter Tyroller, member of the board of management of the Bosch Group responsible for Asia Pacific, at the 60th annual meeting of the Indo-German Chamber of Commerce in Düsseldorf. In 2015, the company increased its sales in the Indian market to 1.7 billion euros – double-digit growth of 11 percent in local currency and more than 25 percent in euro terms. “For the years ahead as well, we see immense growth opportunities in India. This is why we plan to invest more than 100 million euros in India in 2016,” Tyroller added. Some of this amount will be invested in the company’s manufacturing plants for automotive components in Bidadi and Nashik, as well as in expanding the research center in Bangalore. Over the past five years alone, Bosch has invested more than 680 million euros in India. Today, it has 15 manufacturing plants across the country.
The Indian automotive market in particular continues to offer great potential for Bosch. “The business with gasoline injection systems and automotive aftermarket components grew significantly last year,” Tyroller said. In 2015, Bosch was also able to achieve double-digit growth rates with security systems, packaging machinery, and energy-efficient technology for buildings. The company also sees opportunities in India’s booming two-wheeler market. And over the long term, the government’s “Make in India” initiative, which aims to advance industrialization in the country and modernize production, will offer more and more opportunities in the area of connectivity. Bosch is already a leading global provider and user of connected industry, with Industry 4.0 solutions also being applied at its Indian manufacturing facilities.
Pioneer of dual education in India The high demand for qualified workers in India was one of the topics discussed during the annual meeting of the Indo-German Chamber of Commerce. In India, Bosch has been offering dual education based on the German model for 55 years now – with training now being provided in nine trades. “Our commitment to developing talent is part of our localization success story in India. It is also the basis for business growth in this dynamic region,” Tyroller said. Since it was founded in 1961, the Bosch Vocational Center in Bangalore has trained over 2,500 apprentices. With more than 30,000 associates across India, Bosch is one of the most important employers in the country.
A major provider of software-related jobs Bosch’s largest development center outside Germany is also in India. At two locations in southern India, Bangalore and Coimbatore, it employs over 14,000 research and development associates. One of their areas of focus is developing software solutions for the internet of things. Bosch is increasingly becoming a major provider of software-related jobs, also in India. In the current year, the company plans to recruit an additional 3,500 university graduates in the country.
Contact persons for journalists: Agnes Grill, Phone: +49 711 811-38140
New plant for steering systems: investment of some 70 million euros by 2019
More than 3,000 new associates in total in the next three years
Investment of 360 million euros from 2012 to 2015
Mexico offers promising opportunities for all Bosch’s business areas
“Year of Germany in Mexico” emphasizes countries’ long-term partnership
Mexico City – The Bosch Group is continuing its dynamic pace of growth in Mexico and further expanding its activities in the North American country. The supplier of technology and services achieved a nominal sales growth of four percent and total sales of 861 million euros in the country last year. In this way, Bosch succeeded in expanding its business in Mexico for the seventh consecutive year. “We expect positive development for all our business sectors in the current year as well,” said René Schlegel, president of Bosch Mexico. The company currently employs more than 13,000 associates in Mexico – one-third more than in 2012. “We plan to hire more than 3,000 new associates in Mexico over the next three years,” Schlegel said.
Bosch sees particularly good potential for its business with innovative mobility solutions. Mobility is also one of the focal points of the “Year of Germany in Mexico.” This initiative, which kicks off on June 6, 2016, is run by the Federal Republic of Germany under the direction of the foreign office. Bosch is one of the initiative’s main sponsors and by participating aims to further strengthen its reputation in the country.
Investments to increase capacity Bosch also aims to further expand its local presence in Mexico. The company is planning to invest more than 90 million euros this year. For instance, the Mobility Solutions plants in San Luis Potosi and Aguascalientes will be expanded. In mid-June 2016, Aguascalientes will start production of the ABS and ESP vehicle safety systems for the local market. In Querétaro, which is located in the central Mexican Bajio region, Bosch is building a 15,000-square-meter manufacturing site for automotive steering systems. It will be Bosch’s eleventh location in Mexico. By 2019, Bosch plans to invest around 70 million euros and employ more than 600 new associates at the site. “Our investment in the new location underlines our confidence in the continued growth of the Mexican market and demonstrates our long-term commitment to the country,” Schlegel explained.
This investment is just the latest in a long line of expansions for Bosch in Mexico. Between 2012 and 2015, the company invested a total of more than 360 million euros for the expansion of manufacturing facilities and development activities. Of this amount, a large portion went to the Mobility Solutions plants in Toluca and Juarez, as well as the Security Systems plant in Hermosillo, where new manufacturing lines were put into operation. These plants manufacture for the local market as well as for North and South America. In 2015, Bosch opened a new plant for thermotechnology in Tepotzotlan which manufactures gas-fired instantaneous water heaters for Mexico and Latin America.
Bosch Group sees Mexico as important R&D location Mexico is also becoming an increasingly important development location for the Bosch Group. In 2014, the company opened its first software engineering center for the Americas in the Mexican city of Guadalajara. There, Bosch currently employs around 200 associates. This figure is expected to increase significantly in the coming years, making Bosch an important employer for specialists from the software and IT industries.
Mexico: a promising market for Bosch Bosch has been present in Mexico since 1955. Today, the company is active in the country with all four of its business sectors. The business with automotive original equipment saw particularly good growth last year. In addition, the Drive and Control Technology, Security Systems, Power Tools, and Thermotechnology divisions achieved double-digit growth rates in 2015. Last year, the Packaging Technology division established a joint venture with the Hubapac Group, which is specialized in the Mexican pharmaceuticals market. In view of the country’s current health profile, this market offers increasing potential. Furthermore, Mexico’s food processing industry is the tenth largest worldwide.
Bosch also sees good long-term potential in the Mexican market. The country is the 15th largest economy in the world and has a similar importance in international trade. The member of the NAFTA free trade zone is the seventh largest car manufacturer and the fourth largest exporting nation in the global automotive industry. After recording growth of 2.5 percent last year, the International Monetary Fund expects the Mexican economy to grow on a similar basis over the coming years.
Bosch main sponsor for the Year of Germany in Mexico This year, a serious of events in various Mexican cities will serve to emphasize the long-term partnership between Mexico and Germany. Bosch is one of the main sponsors of the “Year of Germany in Mexico” and will be a participant in many cultural and information events. “With our participation, we want to emphasize the close long-term relationship our company has with Mexico,” Schlegel said. Alongside mobility, the focal points of the initiative will include urbanization, Industry 4.0, digital culture, and sustainability. The aim is to promote exchange on these topics and to deepen understanding of German culture and the role of the German economy in Mexico. Bosch will also be part of the exhibition “Made in Germany,” running from June 15 to 19, 2016, in Mexico City. There, the company will showcase innovative products and solutions that are “Invented for life.”
Contact person for press inquiries in Germany: Agnes Grill, phone: +49 711 811-38140
Trix Böhne, phone: +49 711 811-6831
Melita Delic, phone: +49 711 811 48617
Contact person for press inquiries in Mexico: Marco Quero, phone. +52(55) 5284 4380