Bosch plans to invest $350 million to expand production and buy more components in North America.
At the beginning of this year Bosch set its sales increase target between 3% and 5%, but now the company is not sure whether its predictions will become true. Werner Struth, 55, who is Bosch’s chairman since January 1st, said that auto industry in Latin America is not as strong as the company expected, but the US and Japan turn out to be profitable markets. China and Europe are also dealing with an economic slowdown, but Bosch will not close any plants here.
”Fortunately, we can compensate for overcapacity by shipping [parts] out of Europe. Of course, we need [permission] from our customers, but they appreciate our flexibility. Our customers that have global platforms get the same parts in the U.S., Asia or Germany,” said Struth.
In 2011 the company invested $200 million in North America for consumer, automotive and industrial products, and this year Bosch plans to add $350 million, to expand and renovate some plants. The company does not plan to build other facilities, but aims at launching gasoline direct injection production and also a new program for commercial vehicles.