The Bosch Group and Mahle groups said on Monday they would sell their joint venture, Bosch Mahle Turbo Systems (BMTS) founded in 2008.
With 1,400 employees, BMTS develops and produces turbochargers for manufacturers of passenger cars and commercial vehicles. Production is largely based in St. Michael in Austria and Shanghai, China. In Germany, There also are two locations in Stuttgart and Blaichach.
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The supplier claims that, thanks to the technology used in production and high quality, BMTS products "have an excellent reputation in the automotive industry [and] have received numerous industry awards".
The global market for turbochargers is also expected to continue to grow in the years ahead as the trend toward smaller engines fitted with turbochargers, especially for hybrid drives, remains strong. BMTS has already benefited from this market trend. However, the company is not yet large enough to achieve sustainable success.
"Large production quantities and the associated economies of scale represent a critical competitive advantage," said Rolf Bulander of Bosch. "Despite bulk orders received from renowned customers, the associated high capacity utilisation at our plants, and above-average growth rates, present sales volumes at BMTS are still too low in comparison with our larger competitors and must be further expanded."
Further investments are needed to achieve the company size required but neither Bosch nor Mahle wants to expand BMTS because both parent companies need to focus their investments on new areas of development.
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By GlobalData"Thanks to BTMS locations and good products, we are currently confident of finding a prospective buyer, who will successfully expand the business," said Mahle chairman and CEO Wolf-Henning Scheider.
