Bosch Group (China) Business Report FY2010

Business Highlights

<Highlights>

- In recent years, the Company has been expanding its activities in the development and manufacturing of products specifically designed for the Chinese market by conducting them locally in China.
- The Company conducts its business in the following areas: diesel engine systems, gasoline engine systems, automotive electronics systems, electric drive systems, and chassis systems.
-The Company recorded particularly high rates of growth in China, where sales grew by 44 percent to 4.2 billion euros, or by 38 percent in local-currency terms in 2010.(From the Group's 2010 annual report)

New headquarters in Shanghai

-The Bosch Group announced that it has opened its new Bosch China headquarters in Shanghai, China. With a total investment of some 980 million Chinese yuan (103 million euros), the new headquarters becomes the largest for the Bosch Group in the Asia Pacific region. The Bosch China headquarters provides a total floor space of over 78,000 square meters. It will house some 1,500 Bosch associates by the end of 2011 and an additional 500 associates by the end of 2012. All three Bosch business sectors are represented in the new premises. The headquarters also provides R&D facilities such as an advanced materials laboratory. (From a press release on April 20, 2011)

 

Diesel engine systems :

Bosch green diesel technology used in China

-Bosch's green diesel technology was featured on more than 20 vehicle models out of all of the vehicles exhibited by auto manufacturers at Auto China 2010. Some of these vehicles include passenger cars such as the Rely V5 1.9TDDI, the Karry Youyou manufactured by Chery Automobile, the Emgrand EX7 manufactured by Geely Automobile, and the B11 2.0D built by Huatai. Some of the commercial vehicles were the Auman heavy-duty trucks and the Jiefang J6 heavy-duty trucks. Bosch's green technology was also used in non-Chinese brands such as on the Audi Q7 and Q5, the Mercedes-Benz VITO, and other models. Although diesel-engine passenger cars account for a very small share of the market in China, many major Chinese companies are actively working on launching diesel vehicles. Bosch sees the share of diesel passenger vehicles growing from the current 20, to 30 percent over the next five years. The Karry Youyou minivan equipped with Bosch's common rail system is the first diesel-powered minivan sold in China. (From a press release on May 2, 2010)

Gasoline engine systems :

Hybrid and electric drive division

-On November 5, 2010, at the 25th World Electric Vehicle Symposium and Exposition (EVS 25) held in Shenzhen, Bosch presented its advanced technologies for electrification and hybrid vehicles and announced its commitment to launching production of these vehicles as early as possible in China. After establishing the business unit for hybrid and electric drives at UAES (United Automotive Electronics Systems Co., Ltd.) at the end of 2009, Bosch has been working on its localization and product expansion project in China. It plans to increase the headcount in the division to over 100 by 2011, planning to launch series production of major components such as integrated motor generators (IMGs) and separate motor generators (SMGs) in 2012. The IMGs are specially designed for single-or dual-clutch parallel hybrids with high performance and starting capabilities, while SMGs have a smaller and lighter drive, which can be applied on pure electric vehicles in the future. UAES will also produce the power electronic units to drive the electrical motors with integrated DC/DC converters. (From a press release on November 14, 2010)

-Bosch is intending to start producing lithium-ion batteries in China, discussing the project with Samsung SDI of Korea and Shanghai Automotive. Since 2008, Bosch and Samsung SDI have been operating a joint-venture company manufacturing hybrid vehicle batteries. However, Bosch is now planning to transfer some of the production operations and R&D activities of the joint venture it has with SDI to a new joint-venture company that it will form with Shanghai Automotive. The discussions among the three companies have reached the final stage, which are aimed toward launching operations in 2012. (From a press release on September 20, 2010)

 

Series production of new Baseline Generators in Changsha

-Bosch will start series production of the New Baseline Generators in Changsha, Hunan Province, China, in mid-2010 for Geely, First Automotive Works (FAW), and Volkswagen. The generators are designed for low-price small vehicles. Production has been underway in Brazil and India since 2008 and 2009 respectively. Bosch also plans to produce the New Baseline Generators in South Africa and Europe. (From a press release on August 4, 2010)

 

 Bosch's start/stop system equipped with Chang'an cars

-The local Chinese content rate of major components used in Bosch's start/stop system, which has attracted a great deal of attention since it was released at Auto China 2008 held in Beijing, has now reached 70 percent on average. And the local content rate of starters alone has reached 90 percent. Bosch has already begun collaborating on the start/stop systems with Chang'an and will be equipping them in many new Chang'an car models in the coming years. In early 2010, Bosch launched an economical version of the start/stop system in China. (From a press release on April 24, 2010)

-Bosch delivers 40,000 start-stop systems to the automaker ChangAn.(From Bosch Group's 2010 annual report)

 

Automotive electronics products:

Awards won by United Automotive Electronic Systems

-United Automotive Electronic Systems Co., Ltd., a subsidiary of Bosch, has received the following awards from its customers: the Excellent Supplier Award for 2010 from Geely Automobile; the Outstanding Contribution Award for 2010 from Dongfeng-Peugeot-Citroen; the Outstanding Contribution Award from Soueast Motor; the Quality Improvement Award for 2010 from SAIC Motor;the Top 10 Supplier Award from FAW Haima Motor; the Excellent Supplier Award for 2010 from Beiqi Foton; the Excellent Supplier Award for 2010 from Changan Suzuki;the Excellent Supplier Award for 2010 from SAIC-GM-Wuling; the Excellent Supplier Award for 2010 from Dongfeng Liuzhou Motor; the Excellent Supplier Award for 2010 from Harbin Dongan Auto Engine; the Excellent Supplier Award for 2010 from Shenyang Aerospace Mitsubishi Motors Engine. (From a press release on April 25, 2011)

-United Automotive Electronic Systems Co., Ltd., which is a subsidiary of the Bosch Group, was awarded the Excellent Product Development Award from Shanghai VW. In 2010, the company provided advanced technical solutions such as the ME17.5.22 controllers and the LSF X4 oxygen sensors for Shanghai VW’s EA211 engine platform in 2010.(From a press release on January 17, 2011)

Chassis systems:

Production of regenerative braking systems for HEV/EV in China

-On April 20, 2011, Bosch Corporation announced that it will start manufacturing its regenerative braking system for hybrid and electric vehicles in China. The brake technology called the HAS hev converts the rotating energy of wheels into electric energy to the maximum extent and stores it into the battery, which helps extend the driving range, save fuel, and reduce CO2 emissions significantly. In 2010, Bosch initiated new energy vehicle technology pilot projects through the team of Electric Vehicle and Hybrid Technology founded in its joint venture, United Automotive Electronic Systems Co., Ltd., aiming to launch local production of key parts in 2012. New energy vehicles equipped with Bosch's technologies are expected to be mass produced in 2013. (From a press release on April 20, 2011)

R&D

R&D structure

- The Company has cutting-edge technical centers that cater to the China market: one each in Shanghai, Wuxi, Suzhou,Donghai, Chongqing and Changsha. The Company is active in hiring local engineers in order to quickly respond to demand from Chinese customers.

- In November 2008, the company opened its winter proving-ground in Yakeshi, Inner Mongolia.

Technical Center

City Year Established Name Focus of R&D activities
Shanghai 1995 United Automotive Electronic Systems Co., Ltd. Technology Center Gasoline Engine Systems
Wuxi 2005 Bosch Diesel Technology Center Diesel Engine Systems
Suzhou 2005 Bosch Suzhou Technology Center Automotive Electronic Technology and Brake Systems
Chongqing 2006 United Automotive Electronic Systems Co., Ltd. Choingqing Technology Center Technical support to accommodate the gasoline engine systems
Changsha 2012
Under construction
(Tentatively)
Bosch Changsha Technology Center
electric systems and starter motors
Testing Center
City Year Established Name Focus of R&D activities
Yakeshi, Inner Mongolia 2007 Bosch (Hulunbeier) Automotive Winter Testing Co, Ltd. Winter road testing of active safety technologies, which include Anti-lock Breaking Systems (ABSs), Electronic Stability Programs (ESPs), and Traction Control Systems (TCSs)

Donghai,

Jiangsu

2010 Bosch (Donghai) Automotive Test & Technology Center Co., Ltd. Road testing of active safety technologies, including Anti-lock Breaking Systems (ABSs), Electronic Stability Programs (ESPs)
ECU solution
City Year Established Name Focus of R&D activities
Shanghai 2005 ETAS Automotive Technology (Shanghai) Co., Ltd. Automotive ECUs

The Fifth R&D Center in Changsha

-The Bosch Group (China) will purchase a piece of land that is more than 30,000 square meters in size at the Changsha National Economic and Technical Development Zone, investing 240 million yuan to construct a new plant building, an R&D center, and other facilities. The new R&D center, which will be Bosch's fifth development facility in China, following those it has in Shanghai, Suzhou, Wuxi, and elsewhere, will engage in developing electric systems and starter motors. The plant will also hire an additional 150 engineers in addition to the current 200 already working.(From a press release on August 19, 2010)

Expanding test center

-Bosch Group (China) is expanding its production facility and testing center to upgrade its safety system business. Bosch Automotive Products (Suzhou) Co., Ltd. is now constructing a second plant, which is scheduled to go into production soon. In the area of testing, construction of a second test road at Bosch’s winter test center will start this year. In addition, the first phase of the construction of a summer test center in Donghai, which began in October 2010, is scheduled to be completed at the end of 2012. Local production of the new generation of Bosch’s ABS and ESP systems is expected to begin this year in response to growing demand for advanced safety technologies in China. (From a press release on April 20, 2011)

-The Bosch Group (China) held a groundbreaking ceremony for its new automotive testing center in Donghai, Jiangsu Province, China. This facility is scheduled to be completed in 2012 with a total investment of 360 million yuan. The test center will facilitate R&D and product assessment activities for products to be sold in China. The new center, which covers a land area of approximately one million square meters, will have various tracks for vehicle testing. It will be open to Bosch customers from the Asia-Pacific region. (From a press release on October 27, 2010)

Product development

-Bosch Automotive Diesel Systems Co., Ltd., which is a joint venture between Bosch Corporation and Weifu High-Technology Co., Ltd., will officially release the CRS1-16 economy type, high pressure common rail systems for passenger vehicles and light-duty commercial vehicles in late 2011. The common rail systems that meet the China lV emissions standards are optimally designed for use in mini vans and mini trucks. Bosch is going to sell the Denoxtronic 6 exhaust gas aftertreatment device for commercial vehicles in 2012. The gas treatment system, which is compliant with the China lV and other tighter emissions standards, can be tailored specifically to the needs of Chinese customers for various driving conditions. (From a press release on April 20, 2011)

-Bosch has developed a new airbag control unit "AB light". This control unit is designed for low-price vehicles, which are rapidly increasing in emerging markets such as China, India, and Brazil. Series production has already started in Suzhou, Jiangsu Province, China, for Dongfeng Motor Corporation models. The unit's standardized design and the use of internally developed application-specific integrated circuits (ASICs) enabled Bosch to reduce the number of components and the overall size. (From a press release on June 22, 2010)

Technological alliance

-Bosch Group (China) and Hunan Jianglu & Rongda Vehicle Transmission Limited Company signed an agreement to conduct joint development of continuously variable transmissions (CVTs) for compact passenger vehicles. The agreement was signed in Changsha, Hunan Province on February 25, 2011. Bosch will offer technical training to Hunan Jianglu, which will procure parts made by Bosch. The intellectual property rights associated with the CVT will be owned by Hunan Jianglu & Rongda Vehicle Transmission. Incorporating Bosch's latest technology, the new CVT unit will be able to encompass a torque converter and the powertrain system of a hybrid vehicle to meet customer needs. It will provide improved gear shifting, a 15 percent reduction in product weight, and a 20 percent saving in cost. Bosch is expecting the percentage of CVT vehicles made by Chinese automakers to increase from below 10 percent to 22 percent by 2016. Hunan Jianglu & Rongda Vehicle Transmission Limited Company was established in 2003. The company became the first company in China to develop CVT on its own. It now has the capacity to produce transmissions for 50,000 vehicles per year. (From news releases issued by multiple sources, February 26, 2011)

Investment Activities

Investment on developping environmentally friendly technologies

-Bosch announced its intention to contribute 50 million euros to universities and research bodies in Germany, China and India over the period of the next 10 years. The subsidy program is part of Bosch’s 125th anniversary project. In China, the company will offer 5 million euros to four universities and the Chinese Academy of Sciences to help them develop environmentally friendly technologies. The company will collaborate with Tongji University and Shanghai Jiao Tong University in the area of electric vehicle motors, electronic control units, regenerative brake systems and batteries. It will also help Fudan University and Tsinghua University develop standardized and improved technology for electric vehicles using lithium-ion batteries. (From an announcement by the company, May 2011)

Expanding Changsha plant for electric systems and starter motors

-The Bosch Group (China) will expand its Changsha Plant. The company will purchase a piece of land that is more than 30,000 square meters in size at the Changsha National Economic and Technical Development Zone, investing 240 million yuan to construct a new plant building, an R&D center, and other facilities. The expansion project is scheduled to be completed in the middle of 2012, and when finished, will double the Changsha Plant's production capacity. The new R&D center, which will be Bosch's fifth development facility in China, following those it has in Shanghai, Suzhou, Wuxi, and elsewhere, will engage in developing electric systems and starter motors. The plant will also hire an additional 150 engineers in addition to the current 200 already working.(From a press release on August 19, 2010)

Bosch Suzhou establishing second plant

-Bosch Automotive Products (Suzhou) Co., Ltd. will establish its second plant to increase production of ABSs and ESPs. The additional facility is scheduled to be completed in May 2011. The Suzhou Plant now produces 2 million ABSs and ESPs a year. Bosch is expecting that installation rate of ESPs in passenger vehicles will increase from the current 12 percent to 25 percent in China by 2015. (From news releases issued by multiple sources on November 16, 2010)

 

 United Automotive Electronic Systems establishing two new plants

-United Automotive Electronic Systems Co., Ltd., which is a subsidiary of Bosch Corporation, and the Wuxi New District agreed that United Automotive Electronic Systems will establish its second plant at the New District. The new facility will be built on approximately 80,000 square meters of land, located 8.5 kilometers from the existing plant. (From a press release on April 8, 2011)

-United Automotive Electronic Systems Co., Ltd., which is a subsidiary of Bosch corporation, held a ceremony to celebrate the opening of its new plant in Wuhu, Anhui Province on March 21, 2011. (From a press release on March 21, 2011)