Despite the ongoing automotive industry struggles, Bosch projects moderate expansion
In the face of significant industry-wide challenges, Bosch, the world's largest automotive supplier, has announced a series of cost-cutting programs and growth expectations for the coming years.
At the Autonomous Trade Fair (IAA) Mobility in Munich, Bosch CEO, Stefan Hartung, revealed that the company expects a revenue growth of at least 2% for its Mobility segment, which includes the supplier segment, for the year 2025. Despite stagnant global vehicle production, weak demand, delays in electromobility, and automated driving, Bosch remains optimistic about growth.
The cost-cutting programs, initiated since late 2023, are aimed at improving the company's competitiveness and profitability. Thousands of jobs are expected to be cut worldwide, with many of these cuts occurring in the supplier segment in Germany. The company must continue to reduce costs across all areas to maintain profitability.
The challenges faced by Bosch are not limited to the automotive industry. The company faces challenges in business areas offering products like heating systems, household appliances, and power tools. Last year, the supplier division's revenue fell by 0.7 percent to 55.8 billion euros.
However, Bosch has a unique selling point. The company supplies automakers with high-performance computers and software, setting it apart in a market increasingly shifting towards software-driven mobility. This shift is likely to further increase pressure on margins, but Bosch is confident in its ability to navigate these changes.
CEO Hartung reaffirmed Bosch's commitment to both hardware and software, stating that the company can do both. This commitment is reflected in Bosch's diverse portfolio, which includes everything from traditional automotive components to advanced software solutions.
Many areas within Bosch are only partially competitive, according to the company. To address this, Bosch expects slight growth (approximately 2%) in its supplier segment this year. The company is also looking to the future, with expectations of a revenue growth of at least 2% for its Mobility segment in 2025.
Despite the challenges, Bosch remains optimistic about its future. The company is confident that its cost-cutting measures, coupled with its unique selling points, will position it well for the future of the automotive industry.
