Bosch’s auto division managed to reach record global sales of 30.9 billion euro in 2012, but failed to reach its sales target by 600 million euro.
Bosch announced that this year it will postpone investments due to the weak auto market in Europe. Although the situation in Europe is tensioned, Bosch managed last year to surpass the previous sales record of 30.4 billion euro set in 2011. Unfortunately the company failed to reach the 31.5 billion euro target set last autumn by Bernd Bohr, the auto division boss.
“We assessed the market trend a bit too optimistically during the first half of 2012,” Bohr said in an interview this month with Automotive News. “We were hit hard by the weakness of south European manufacturers.”
Bosch, which supplies diesel systems to Fiat, Peugeot, Citroen and other automakers in the market, was hit when the companies’ European unit sales fell. Last year new car sales in Europe dropped 8% reaching the lowest level in almost 20 years, forcing Peugeot-Citroen, GM and Ford to announce factory closures.
“We will take a close look at the head count trend in Europe, reduce the investment in equipment and facilities, and examine all the other budgets, starting with travel costs,” said Bohr.