Bosch Group (China) Business Report FY ended Dec. 2013

Business Highlights

Business Overview

-In recent years, the Company has been expanding its activities in the development and manufacturing of products specifically designed for the Chinese market and conducting these activities 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.

New Company

-Bosch Mahle Turbo Systems (BMTS), a joint venture between Bosch and Mahle, announced that it has established Bosch Mahle Turbo Systems (Shanghai) Co., Ltd., a wholly owned production subsidiary in Shanghai, China. The subsidiary is constructing a factory on a 5,000-square-meter-plot within the premises of Mahle’s existing Shanghai facility. The new plant will be operational in the first quarter of 2014, and will initially produce turbochargers and gasoline engines for the Chinese market. Approximately 100 employees from BMTS Austria and BMTS Germany will be transferred to the Shanghai Plant. The plant will be able to produce 1 million turbochargers per year. (From a press release on February 14, 2014)

Start Mass Production

-Bosch Group (China) announced that it has started a project to mass-produce the EV14 gasoline injector at its Wuxi Plant. The EV14 injector, which is smaller than existing injectors, offers higher injection accuracy and improved fuel consumption. The company aims to start mass-production in July 2015. (From news releases issued by multiple sources on July 15, 2013)

Pass the Review

-ZF Shanghai Steering Co., Ltd. announced that its R&D center has obtained the ISO17025 certification from the China National Accreditation Service for Conformity Assessment. The company became the first Chinese steering supplier and the first ZF group company to acquire the certification. (From news releases issued by multiple sources on December 30, 2013)

Strategic Cooperation
-Bosch Automotive Diesel Systems Co., Ltd. and Jiangling Motors announced that they have agreed to jointly develop common rail systems to meet the requirements of the China IV emission regulations. Electronically controlled common rail technology is expected to become the mainstream solution for clean diesel combustion. Jiangling Motors will use Bosch’s next-generation common rail system on its new Yusheng vehicles. (From news releases issued by multiple sources on February 19, 2013)

Awards
-United Automotive Electronic Systems Co., Ltd., a subsidiary of the Bosch Group, announced that it won the following awards in December 2013.

  • Dongfeng-Peugeot-Citroen: Excellent Supplier Awards (the second consecutive year);
  • FAW Haima Motor: Excellent Supplier Awards;
  • SAIC-GM-Wuling: Excellent Supplier Awards (the fourth consecutive year);
  • Dongfeng Liuzhou Motor: Excellent Supplier Awards;
  • Anhui JAC Engine: Excellent Supplier Awards.
  • Harbin DongAn Automotive Engine: Excellent Supplier Award.

(From a press release in January 2014)

-The United Automotive Electronic Systems (UAES) has won Bosch’s GS excellent quality award for its LSF4.2 oxygen sensors. The Bosch subsidiary transferred its oxygen sensor production line to the Wuhu facility in 2011. Since then, it has been committed to further improving its product quality and reducing costs. (From a press release, July 25, 2013)

-On July 3, 2013, the company received the following awards from the SAIC Group. The UEAS BCM V1.0 control software won the second prize in the software division; the FSM-G.30 electric fuel pump assemblies and the ME178.8 electronic control platform for automotive engines received the third prize in the technology innovation division; and the company’s manufacturing technologies for airbag-integrated pressure stabilizers and those for fuel pipes were given the third prize in the patent division. (From a press release, July 4, 2013)

R&D

R&D Facility

-The Company has cutting-edge technical centers in Shanghai, Wuxi, Suzhou, Donghai, Chongqing and Changsha to serve the Chinese market. 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

Technological Cooperation

-The Company and JAC announced that they will jointly develop a next-generation automotive infotainment system supporting the GENIVI 2.0 platform. This would be the first time that such a system would be made in China. JAC intends to install the new electronic device on its vehicle which is scheduled for release later in 2013. The Company, a member of the GENIVI alliance, aims to cut development costs while providing products with functions that meet Chinese customers’ requirements. For example, a 3D navigation map with advanced visual effects will be incorporated into the GENIVI 2.0 system. (From news releases issued by multiple sources on January 16, 2013)

New Products

-Bosch and Hunan Jianglu&Rongda Vehicle Transmission Limited Company have developed and announced a new compact continuously variable transmission (CVT). The CVT uses a highly durable material that was newly developed, and offers excellent power-transmission efficiency to the CVT belt. The sample of the new CVT has already passed testing, and mass-production of the new product is expected to begin within the next few years. (From a press release on April 2, 2014)

-Bosch has developed a new engine start/stop system with a coasting function that offers a zero-emission, noise-free, and low-resistance mode. This technology stops the engine when the vehicle is in motion while being able to maintain its speed simply by rolling. Adding the coasting function is expected to reduce fuel consumption by 10 percent and to cut CO emissions. According to Bosch, this advanced start/stop system can be combined with any type of internal combustion engines. (From a press release on January 20, 2014)

Investment Activities

Investment in China

-United Automotive Electronic Systems Co., Ltd. in the Bosch Group announced that it has completed its new production line to manufacture high-pressure oil pumps at its Wuxi Plant. The company started constructing the advanced line at the beginning of 2013 in order to reduce its production cycle time to 10 seconds from the current 18 seconds. The new line is planned to start mass-production in March 2014. With this new operation, the company expects to increase its annual high-pressure oil pump capacity to 1.8 million units, which will be an 80 percent increase from the current level. (From news releases issued by multiple sources on March 3, 2014)

-ZF Shanghai Steering Systems (Wuhan) Co., Ltd. is constructing a plant adjacent to General Motors’ vehicle assembly facility at the Jingang New District, Jiangxia Economic & Technological Development Zone, Wuhan. The ZF subsidiary was established in November 2013 with a capital of CNY 50 million. It is investing CNY 350 million in the first phase of the construction project, which includes production lines for components such as electric steering columns, hydraulic steering systems, mechanical steering columns, and mechanical steering systems. (From news releases issued by multiple sources on January 13, 2014)

-The Bosch Group officially opened its new Chinese subsidiary, Bosch Automotive Products (Chengdu) Co., Ltd., on July 31, 2013. The new company, which is located in Chengdu, Sichuan Province, covers a land area of approximately 127,000 square meters. Total investment is expected to reach CNY 880 million. Bosch has just completed the first phase of the construction project with an investment of CNY 287 million. Following the launch of wheel speed sensor production by the end of this year, the new company will also commence production of the ABS antilock braking system and the ESP electronic stability program in 2014. (From a press release on August 5, 2013)

-Bosch officially opened the new Automotive Test and Technology Center in Donghai, Lianyungang today. The center is involved a total investment of 591 million RMB and covered a land area of some 1,396,000 square meters. In the current first phase of the test center, it serves various vehicle types for the road test of Active Safety technologies including ABS and ESP® and Driver Assistance systems.The Donghai test center aims to provide comprehensive test tracks upon the completion of all three phases of construction by end of 2016. (From a press release on June 25, 2013)