Bosch UK sales grew slightly last year from EUR2.2bn to EUR2.4bn, with the automotive technology sector continuing to remain the company’s largest business sector.
The Tier 1 supplier’s UK president, Peter Fouquet, talked to Simon Warburton at this week’s Bosch presentation at MIRA’s (Motor Industry Research Association) test track in the Midlands.
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j-a: How do you feel the UK government supports the automotive sector?
PF: There is very positive support from the government to the automotive industry. I am a member of the Automotive Council and I support that very much. Especially technology, they try to influence positively the business environment and the supply chain activities.
All in all it [Automotive Council] gives a good basis for development – a good example for other markets.
j-a: Could the British government do more in terms of financial incentives to encourage the automotive sector?
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By GlobalDataPF: I don’t think subsidies are good motivation to make investment – it is not [a] motivation for Bosch to make investment based on subsidies.
We look at where we can optimise production regarding volume, cost and available skills, support for universities, some tax credits for research and development, [these are] the right approach to support the industry. Corporation tax development is [also] a very good thing.
Our intention is to invest in R&D and technology in the UK – it will be important we have sustainable development – sustainable development and innovation in design and technology.
“Bosch is one of the UK’s largest European investors – today we employ 4,400 people across 40 sites.”
j-a: Some OEMs have suggested there could be more suppliers based in the UK – what’s your view?
PF: You can have high [ly] efficient production and assembly in your country, but you need to have the most efficient resources and you have to use the global supply chain and optimise structures.
It does not mean it [would] not [be] beneficial to have more suppliers here. It would be beneficial, but it depends what product and is it Tier 1, Tier 2?
Some Tier 1s – us for example – have to look to produce some components in high volume to reach our cost targets. So we have decided already for some production locations which are all over the world.
j-a: The UK seems to bucking the trend of overall European gloom in the automotive sector. Where is your assessment of how the market will develop?
PF: [UK] 2.1m cars by 2015 is realistic – all the car manufacturers have models here [such as ]Honda, Nissan, Jaguar Land Rover. “What I feel is not frustration – it is a certain confidence.
We see in the consumer market [a] good mood – I can’t really explain why new cars sales are up – the British are car enthusiasts and they like technology.
“We expect a new all-time high [UK car sales] – I am confident we will reach that in this country and we as Bosch will be able to benefit out of this development.
j-a: What are some of the key areas on which Bosch is concentrating?
PF: Connectivity is one of our future themes. We believe [from] 2015, more than 6bn things, including vehicles, will be connected to the internet.
This will only be of benefit if information is transmitted between devices, for example, information between cars to prevent accidents at junctions.
This increase in connectivity means our product portfolio has a great number of common features. We have profound knowledge of manufacturing products, not only software but hardware [too].
j-a: There has been much talk of late that electric vehicles may take longer than predicted to become mainstream transport options – how do you feel about the sector?
PF: I think pure electric vehicles will stay as a niche product for a time. Much more hybrid cars will be in focus, also light hybrids, which have a bigger combustion engine.
Everything depends on having the right battery technology. If anybody creates the technology that brings a breakthrough, the development might be much faster.
The cost for electrification and development of the internal combustion engine regarding production optimisation…is so promising, for example, downsizing.
Bosch Group reported fiscal 2012 sales of EUR52.5bn, up 1.9% and spent EUR4.8bn on research and development, while applying for nearly 4,800 patents worldwide.
In 2012, the company’s Automotive Technology division, its largest, increased sales by 2.1% to EUR31.1bn.
