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May 27, 2008

GERMANY: EC approves Bosch/Mahle JV

The European Commission has approved a joint venture between Bosch and Mahle to develop turbochargers.

The European Commission has approved a joint venture between Bosch and Mahle to develop turbochargers.

The 50-50 joint venture was announced in February and will be called Bosch Mahle Turbo Systems. Series production is scheduled to start in 2010.

The move is a response to the growing use of exhaust gas turbochargers, already common in modern diesel engines, now expected to become increasingly prevalent in petrol engines too.

Bosch has extensive experience in petrol and diesel injection technology while Mahle is expert in the development and manufacture of high temperature-resistant turbocharger components. Its subsidiary, Mahle Powertrain, specialises in the development, design, and application of turbocharged engines.

“This joint venture will now allow us to offer our customers from a single source a complete product portfolio for reducing fuel consumption and emissions,” said Bosch automotive group chief Bernd Bohr at the time of the announcement.

The joint venture will compete with Honeywell and BorgWarner of the US.

“The proposed merger would not entail any horizontal overlaps since the parties are not active on the same markets,” the European Commission said in a statement.

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