Robert Bosch GmbH Business Report FY ended Dec. 2012
|(in million euros)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||Rate of Change (%)||Factors|
|EBIT||1,410||2,331||(39.5)||-High upfront investments in electromobility
-Increased raw materials prices
-Disposal of the foundation brakes business
-Sales in FY ended Dec. 31, 2012 increased by only 1.9% year-on-year. After adjustment for currency effects, sales were 0.8% lower than in 2011, due to primarily acquisitions and disposal of business operations.
-Acquisitions including Taiwan-based Unipoint Group, which manufactures products for automotive aftermarket, increased sales by 340 million euros.
-On the other hand, disposal of the foundation brakes business and of the all shares the Company holds in Hyundai Kefico, which was a joint venture with Hyundai Motor, depressed sales by 600 million euros.
<By Geographic Region>
-Sales were favorable in Southeast Asia where the Company enjoyed a double-digit growth rate as well as in North America where it achieved a year-on-year increase of 8.8 percent. Nevertheless, sales decreased by 9.9 percent from 2011 in South America due to the slump in automobile production in Brazil and Argentina. Sales also dropped in Europe by 2.4 percent, where the Company generates more than half of its revenues.
2) Automotive Technology
-The division increased its sales by 2.1% to 31,047 million euros.
-Global production volume of heavy-duty trucks decreased, while business slowed down in southern Europe, where the Company has a high market share due to the popularity of diesel passenger cars.
-Demand for exhaust gas aftertreatment devices grew in connection with favorable sales of diesel passenger vehicles in India and the tightening of emissions standards.
-The Company plans to acquire all the shares in Bosch Emission Systems GmbH & Co. KG (BESG) from Deutz and Eberspaecher to meet increased demands for diesel exhaust-gas treatment systems. In the future, the Company plans to increase its business with truck and engine manufacturers as well as non-road-mobile machinery manufacturers in North America and Asia.
-Despite the drop in the production of vehicles in Europe, the year 2012 saw high demand for energy-efficient and eco-friendly powertrain technology for gasoline engines. And there is a marked trend toward gasoline direct injection systems, an area in which the Company was able to increase its sales by around 50%.
-The turbocharger market grew supported by automakers' initiatives to use smaller engines.
-ZF Lenksysteme GmbH, a 50-50 joint venture with ZF, is enjoying strong sales of EPS.
-In Nov. 2012, the Company announced that it has established Bosch Car Multimedia Wuhu Co., Ltd. at the Wuhu Economic and Technological Development Zone through a joint investment with Wuhu Ruichuang Investment and Atech of Australia. The Company has invested 60% in the new company, which will function as an engineering center and a production base of the Asia Pacific Automotive Instrument Cluster Division. The new facility is expected to have the capacity to produce 2 million instrument clusters a year. After the joint venture project was signed in April, this year, approximately 480 associates (this include 170 engineers) from Atec were transferred to the new operation. (From a press release, November 28, 2012)
-In Oct. 2012, Bosch China and the FAW Sihuan Group established a joint venture in Changchun, China, called Bosch Automotive Components (Changchun) Co., Ltd., which launched commercial operations. The Companies invested 240 million yuan in the joint venture, which is capitalized at 80 million yuan. Bosch has a 55% stake in the joint venture, while FAW Sihuan has the remaining 45%. The joint venture launched production in October, and has the production capacity to produce 60,000 starters and 55,000 alternators a year. It will supply products mainly to companies within the FAW Group located in the northeastern area of China, such as FAW VW, FAW Car Co. Ltd., etc. (From an Oct. 26, 2012 press release)
Strengthening electromobility business in Germany in 2012
-EM-motive GmbH, a 50-50 joint venture between Bosch and Daimler, is stepping up production of EV motors, looking to produce over 1 million units by 2020.
-The Company, BMW Group, Daimler, EnBW, RWE, and Siemens announced that they have formed a joint venture in Berlin, Germany. The new company, hubject GmbH, will enable all users of electromobility to access a nationwide charging infrastructure comfortably and securely. Its purpose is to develop and operate a data platform that will create an integrated charging infrastructure. The test run of the new service platform in Germany is planned from the late summer. (From a press release on March 15, 2012)
-In 2012, the Company, Deutz AG, and Eberspaecher GmbH & Co. KG have agreed to restructure their collaboration in the area of diesel exhaust-gas treatment.
- Bosch plans to acquire all the shares in Bosch Emission Systems GmbH & Co. KG (BESG) from Deutz and Eberspaecher. In the future, the Company plans to increase its business with truck and engine manufacturers as well as non-road-mobile machinery manufacturers in North America and Asia.
- The collaboration between Bosch and Deutz is to be expanded, and will take the form of a partnership. The partnership will focus on exhaust-gas treatment, diesel injection technology, and electronics. BESG will also continue to supply Deutz with systems for exhaust-gas treatment.
- The Company and Eberspaecher intend to collaborate closely on joint development projects in the area of exhaust-gas treatment technology.
-During 2012, the Company sold the 50 percent share it held in Kefico Corp to its joint venture partner Hyundai Motor, dissolving the 50-50 joint business. The Company, however, will continue to manufacture components for direct gasoline-injection engines in Korea.
-In 2012, the Company and Samsung SDI of Korea announced that they have agreed to dissolve their joint venture SB LiMotive, which develops, manufactures and sells lithium-ion batteries for hybrid and electric vehicles. Both companies shared 50/50 in establishing the joint venture in 2008 in Korea. In future collaboration with its former joint venture partner, steps have been taken to ensure that all development and supply agreements will be continued. In addition, the parties have agreed to grant each other access to patents. The Company will take over the subsidiary SB LiMotive Germany GmbH. Based in Stuttgart, it focuses on systems engineering, battery management systems, prototyping, marketing, and sales. At the same time, Cobasys, which manufactures NiMH energy storage systems, will be integrated into the Company. This U.S.-based subsidiary has locations in Orion, Michigan and Springboro, Ohio. (From a press release on September 5, 2012)
<Foundation brakes business>
-The Company announced that it is planning to sell its foundation brakes business to KPS Capital Partners, a private equity firm based in the U.S. The planned sale comprises the original equipment business with products such as brake calipers, disk brakes, drum brakes, and parking brakes, with a total sales volume of 850 million euros in 2010. Some 5,200 associates work in this sector. It comprises 20 locations in Europe, Asia Pacific, and South America, of which 15 are manufacturing sites. This was followed at the end of 2009 by the sale of the Company's foundation brakes business in North America to the Japanese brake manufacturer Akebono Brake Industry. Selling its remaining foundation brakes business to KPS Capital Partners will conclude the realignment of the brake operations of the Company. In the future, the Company's brake operations will be focused on brake boosters and brake control systems. (From a press release on January 10, 2012)
-In 2012, the Company announced that it will relocate the manufacturing activities, with related support functions, of its Bangalore Plant located at Adugodi to Bidadi in India in two phases from 2012-13 to 2015-16. The Company has acquired 97 acres of land in Bidadi for the construction of the new manufacturing facility and will invest nearly 600 crores Indian rupees for development of the facility in both phases.
- Phase I (2012-2013): By establishing a new facility and transferring some 1,000 employees, the Company is going to produce common rail pumps, common rail plugs and glow plugs, starting in the first quarter of 2014.
- Phase II (2015-2016): By establishing a new facility and transferring some 3,000 employees, the Company plans to produce inline pumps, elements, delivery valves, conventional and PF pumps, starting in the first quarter of 2017.
<Capital Alliance with Denso>
-In 2012, the Company announced that it has sold its entire 46 million shares it had in Denso Corporation for 1.1 billion euros (approximately 110 billion yen). The Company says it will use the funds in promising areas and corporate acquisitions. The Company had already sold part of its original investment in Denso in 2009, and the sellout of the roughly 5 percent of all Denso shares will end its investment started in the mid 1950s. In efforts to better meet the requirements of the global automotive industry, the Company and Denso will continue to work together within the framework of existing partnerships and alliances. (From an article in the Nikkan Jidosha Shimbun on Nov. 10, 2012)
Contracts-Major contracts in 2012
|Volkswagen "eco up!"||-Engine management system
-Injectors for natural gas and gasoline
-Mean pressure temperature sensor
-Airbag control unit
|Mercedes-Benz "Actros"||-Predictive Powertrain Control||-Jointly developed with Mercedes-Benz Trucks.
-Utilizing this product enables an average fuel saving of three percent to be achieved on German autobahns and highways.
|Mercedes-Benz "Sprinter", Volkswagen "Crafter"||-Servolectric electric power steering system||-Compared with hydraulic steering systems, the Servolectric with minor modifications saves around 0.6 litres of fuel in the NEDC (New European Driving Cycle) in urban traffic.|
|Volkswagen "Passat Alltrack"||-Driver Drowsiness Detection||-The system can detect the initial signs of fatigue by monitoring steering movements and advising drivers to take a break in time.|
|Peugeot "3008 HYbrid4"||-Electrical powertrain which combines a diesel engine and electric motor||-Combining a diesel engine with an electric motor reduces fuel consumption by as much as 35%.|
|Tata||-Electric power steering system which produced locally||-|
-In Nov. 2012, the Company announced that its Gasoline Systems division has manufactured 50 million gasoline injection valves from the HDEV5 series and 10 million high-pressure pumps from the HDP line. Only last year, the 25 millionth injection valve and the 5 millionth high-pressure pump rolled off the line. The Company currently produces high-pressure pumps and injection valves at its lead plants in Bamberg and Nuremberg (Germany), as well as in Bursa (Turkey), Wuxi (Jiangsu Province, China), Charleston (South Carolina, U.S.), and Korea.
-In 2012, the Company announced that, between 2011 and 2014, it plans to increase the annual unit sales of its systems: from 4 to 8.6 million for gasoline direct injection systems.
-The Bosch Group announced that, between 2011 and 2014, it plans to increase the annual unit sales of its systems from 7.2 to 9.6 million for common-rail diesel systems.
-In 2012, the Company is currently rolling out series production of its new ESP plus. With this version of Generation 9, many safety and assistance functions in addition to the anti-skid system can be integrated into the car. The ESP plus enables OEMs to integrate features such as adaptive cruise control with a stop-and-go function.
-In Mar. 2012, the Company announced that it has manufactured 75 million ESP systems since series production began in 1995. While the first version weighed 4.3 kilograms, the basic version of the latest Generation 9 is noticeably lighter and more compact at just 1.6 kilograms. (From a press release on March 26, 2012)
-In Feb. 2012, the Company announced that since 2007, the Company has manufactured five million start-stop starters.
Outlook for FY ending Dec. 31, 2013
-With economic outlook remaining murky especially in the European market and effects of business acquisitions and disposal likely to affect its performances as they did in 2012, the Company forecasts a sales increase of 2-4 percent for 2013.
|(in million euros)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||FY ended Dec. 31, 2010|
-Development costs for environmentally friendly and high-performance products, which include economical internal combustion engines, new electromobility technologies, and highly efficient hydraulic powertrains, account for roughly half of the Company's R&D budget.
R&D Structure-The Company hired an additional 4,300 researchers in 2012, as it did in 2011. More than half (2,200) of these associates were assigned to its Asia Pacific operations. The Company now employs 42,800 researchers and developers at its worldwide R&D bases (86 facilities), of which 26,400 are in Europe (mainly Germany), 2,600 in the Americas, and 13,800 in Asia Pacific.
R&D Facilities-During 2012, the Company started constructing its new R&D facility in Renningen, Germany, an important hub in Bosch's research network. It also expanded its development capabilities in eastern Europe and Asia.
-In 2012, the Company marked the start of construction for the Robert Bosch GmbH research and advance engineering center in Renningen, Germany. Over the next two years, a total of 14 new buildings will be erected on a space of 100 hectares. The total size of the new center will be almost 110,000 square meters. The construction costs amount to around 160 million euros. The first 1,200 associates are set to begin working in Renningen in the spring of 2014. Their research work activities will focus on materials and methods, and technologies, as well as on the development of new systems, components, and manufacturing processes. At the moment, these activities and the relevant units are spread at locations in the greater Stuttgart area, in the suburbs of Gerlingen-Schillerhohe, Schwieberdingen, and Waiblingen. Once the first building is completed in the spring of 2014, associates will gradually be moved to Renningen from other locations in Stuttgart. The move is expected to be completed by the fall of 2014.
-Robert Bosch Engineering and Business Solutions, a 100% owned subsidiary of the Company based in Bangalore, India, declared operational their Automotive Systems Laboratory. This laboratory allows engineers and researchers to study the modern running-mechanism in live engine and vehicle systems by providing hands-on experience with systems like engine management systems, clutch and brake systems, exhaust systems, etc, along with the sensors and actuators. The investment is valued at 2 crores Indian rupees, approximately 278 thousand euros. (From a press release on November 6, 2012)
-Based on its plan to move the manufacturing activities of its Bangalore Plant located at Adugodi to Bidadi, the Company will use the space to become available in Adugodi for setting up a Technology and Engineering centre.
-In 2012, a research and development center is being constructed at the manufacturing site in Wujin, China.
-The Company announced that it will receive a 2.75 million dollars grant from the U.S. Department of Energy (DOE). With these funds, the Company, in collaboration with Clemson's International Center for Automotive Research and the Oak Ridge National Laboratory, will develop an oxygen sensor which directly and accurately measures the oxygen concentration in the intake manifold. (From a press release on September 12, 2012)
Recovery of waste heat from the exhaust tract
-The Company is developing a new hybrid solution for the recovery of waste heat from the exhaust tract. The concept for converting the waste heat in the exhaust tract into electrical or mechanical energy offers a potential fuel saving of roughly five percent. The waste heat in the exhaust is used to generate steam, which drives an expansion machine. The mechanical energy gained as a result can be used to drive the crankshaft, either directly or via a gear unit. Alternatively, the expansion machine can drive a generator that supplies electrical energy to the on-board vehicle network or a hybrid powertrain's traction battery. The Company is currently developing various designs for an expansion machine, which is the main energy-conversion component. (From a press release on June 28, 2012)
Parallel full-hybrid technology
-The Company is working on parallel full-hybrid technology that can be integrated into a commercial vehicle's drive train without taking up a lot of space. When driving long distances and on multi-drop delivery runs, electrical energy can be recuperated when driving downhill or braking, and temporarily stored in a high-voltage battery. When the truck drives uphill or starts off, this energy drives an electric motor that supports the internal-combustion engine. The Company calculates that this can reduce consumption by some 6 percent on long-distance journeys, and by as much as 20 percent on delivery runs. (From a press release on June 28, 2012)
Combined inertial sensor
-The Company developed the new SMI650 combined inertial sensor. It can withstand operating temperatures of up to +140 degrees Celsius and is able to deal with even strong broadband vibrations thanks to a special vibration damper. This is the first time that an electronic control unit for the ESP electronic stability program has featured a sensor with integrated vibration damper. ESP electronic control units with integrated inertial sensors have no need for complicated wiring to connect to external sensors. The first series-production version of the new combined inertial sensor will be incorporated in the Company's current generation 9 ESP electronic control units. (From a press release on November 16, 2012)
Peripheral acceleration sensor
-The Company has introduced the next generation of peripheral acceleration sensors for passenger protection systems in vehicles – the fifth since 1996. The key features of the new digital sensors include a wide measurement range of between ±120 g and ±480 g and the choice of communication via the SPI or the PSI5-V1.3 interface. The SMA58x can be switched from ±120 g to ±240 g and is designed to be integrated into the peripheral side collision sensors. The SMA59x, with twice the measurement range, is specially designed for front collisions. In just a few milliseconds, they transfer to the airbag control unit all the data needed by the electronics system to determine with absolute certainty whether a collision is minor or serious. The control unit checks the plausibility of the incoming sensor data before deciding which vehicle restraint systems (e.g. front, head or side airbag and seat-belt pretensioners) to activate. (From a press release on September 25, 2012)
77-gigahertz radar system
-The Company will be launching a new radar system for rear-end applications, based on the 77-gigahertz frequency band in 2014. A European automaker will be deploying the Bosch MRR rear mid-range radar sensor, which can precisely locate vehicles in blind spots or approaching from behind. Compared to today's 24-gigahertz solutions, this sensor is much more precise, with up to three times the ability to distinguish between objects and up to five times more accurate measurement of speed and distances. The front-end version of MRR, which was developed in parallel, has an even greater range of up to 160 meters, with an aperture angle of up to 45 degrees. (From a press release on October 29, 2012)
Stereo video camera
-The Company developed a new stereo video camera to give driver assistance systems binocular vision. Thanks to its binocular vision, it can measure distances to other objects using the video signal alone. The stereo camera data alone can be used to trigger an automatic emergency braking process. If an accident cannot be prevented, the speed of impact and the severity of the accident can at least be minimized. In addition, by priming the passenger restraint system, airbags and seat belt pretensioners can be deployed in the optimum way. (From a press release on October 29, 2012)
ESP - Electronic Stability Program
-The Company developed its new ESP 9 premium. The core of this new version is an efficient return pump that can build up brake pressure very fast, and almost without any vibration. While current brake control systems work with two pump elements, a total of six pistons are integrated into the ESP 9 premium. The ESP 9 premium is smaller and 800 grams lighter than its predecessor. (From a press release on August 15, 2012)
Common-rail injection system for medium and heavy commercial vehicles
-The Company developed the CRSN3-25 common-rail injection system for medium and heavy commercial vehicles that delivers a maximum injection pressure of 2,500 bar. Thanks to an integrated pressure limiter, a comprehensive system check can be carried out when the vehicle is being serviced. The modular CRSN3 injection system is designed for operation with diverse injection pumps. It can be used in diesel engines with up to 16 cylinders, as well as in on- and off-highway applications. This covers short and long-haul road travel, as well as construction machinery, tractors, and maritime applications. In addition, the Company is making a significant contribution to meeting the Euro VI emissions standard, which will come into force in 2013, as well as US 10 in the U.S. (From a press release on August 6, 2012)
New type of driver assistance system Eco.Logic motion
-The Company developed a new type of driver assistance system Eco.Logic motion for commercial vehicles. Eco.Logic motion acts as a predictive sensor for optimizing the driving strategy. The system creates a three-dimensional image of the surroundings based on a digital map that also includes information on gradients and bends. This image combined with precise data about the vehicle's location obtained via GPS (Global Positioning System) is used to calculate a suitable speed and an appropriate gear selection for the route section ahead. Utilizing Eco.Logic motion enables an average fuel saving of three percent to be achieved on German autobahns and highways. (From a press release on August 6, 2012)
Multi-standard digital radio chipset
-Bosch Car Multimedia and STMicroelectronics have jointly developed a multi-standard digital radio chipset, the world's first technology that enables simultaneous reception and processing of AM/FM and multiple digital-radio broadcasts. The radio chipset contributes to shortening development lead-time to offer high-performance and cost-efficient car infotainment systems. These systems will provide improved driving experience with new-generation radio features and value-added services like synchronized streaming of textual and visual information such as real-time weather and traffic updates. (From an article in the Nikkan Jidosha Shimbun on July 24, 2012)
|(in million euros)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||FY ended Dec. 31, 2010|
-Of the total capital expenditure for 2012 that reached 3,151 million euros, 1,100 million euros was spent in Germany, especially for the construction a new R&D center in Renningen. Investment in the Americas totaled 380 million euros, majority of which was spent on expanding production of injection systems for commercial vehicles and gasoline direct injection systems for passenger cars.
Investments outside GermanyDuring 2012, the Automotive Technology Division invested in enhancing local production structure in eastern Europe and Asia
-The Company announced that it plans to establish a new manufacturing site for automotive technology in Samara, Russia. By 2015, the supplier will invest some 40 million euros in the new location. The buildings constructed in this phase will cover some 15,000 square meters of floor space, and include manufacturing, administration, warehousing, technical infrastructure, and others. The site itself covers a total of some 200,000 square meters. Construction work is set to start in the first half of 2013. The Company plans to employ more than 500 associates in Samara by the end of 2017. The Company plans to locate the operations of three divisions at the new site: Chassis Systems Control, Starter Motors and Generators, and Diesel Systems. They will manufacture automotive technology such as anti-lock braking systems and alternators, mainly for local customers. These products will later be joined by starters and common-rail injectors for commercial vehicles. (From a press release on December 18, 2012)
-In Sep. 2012, the Company is laying the foundation stone for its first plant in Pecinci, Serbia. The production facility, part of the Electrical Drives division, is currently being constructed. Production is expected to start in the second half of 2013. The group will invest some 70 million euros in the site over the next seven years, and plans to employ 620 employees. (From a press release on September 25, 2012)
-The Company announced that it plans to set up a location for the manufacturing and development of automotive electronic control units in Cluj-Napoca, Romania. In the first phase of construction work up to the end of 2013, the planned investment is 77 million euros. Construction work is to start in the second quarter of 2012, and manufacturing is scheduled to begin in mid-2013. The resulting facilities will cover a total floor space of 38,000 square meters. By the end of 2013, it is planned that some 340 associates will work in Cluj-Napoca. In the years that follow, the location is to be further expanded. (From a press release on May 8, 2012)
-The Company announced that it is to extend its manufacturing facility in Blaj, Romania. Starting in the spring of 2013, wheel-speed and crankshaft sensors are to be manufactured there for the automotive industry. Construction will start in the spring of 2012. The Company will invest some 43 million euros up to the end of 2013 in a plant extension. By the end of 2013, roughly 300 new jobs will be created in new premises covering some 21,000 square meters. By 2020, the number of associates manufacturing wheel-speed and crankshaft sensors is expected to rise to roughly 1,000. (From a press release on March 2, 2012)
-Bosch Automotive Diesel Systems Co., Ltd. broke ground for its new plant at the Qingdao High Tech Development Zone, which will become its second production base, on November 30, 2012. The Qingdao facility will develop clean diesel technologies and produce common rail injectors for large/small commercial vehicles and passenger vehicles. (From a press release, November 30, 2012)
-In 2012, the Company announced that expansion plans are underway at the Bosch Nashik and Ahmedabad facilities in India.
- Nashik: Increased demand has resulted in Classical Nozzle Holder production volumes going up from 17,000 units a day to 26,500 units a day. DSLA Nozzle production volumes have similarly risen from 18,000 units a day to 30,500 units a day. To cope with this increased demand the Company has expanded production area by an additional 33,000 square meters.
- Ahmedabad: With a floor area of 37,000 square meters the plant is expected to be functional by the first quarter of 2012. This facility will produce hydraulic valves, power units and control blocks as well as cylinders.
-In 2012, the Company announced that it plans to expand the diesel engine parts factory located in Daejeon Metropolitan City of Korea. The Company will add production lines to manufacture common rail high-pressure pumps (CP4) and common rail injectors (CRI and CRI2-20) by 2013. The new production line will have the capacity to produce CP4 pumps for 500,000 vehicles annually.
-During 2012, the Company invested approximately 230 million euros in its plant located in Long Thanh, making push belts for continuously variable transmissions. Majority of these push belts are used on vehicles produced by Japanese automakers. The plant, which currently employs around 700 people, will more than double the number of employees to 1,500 within the next two years.