Although Bosch’s auto division reported record global sales of 30.9 billion euro, up 1.7%, last year, it still missed the 2012 target by 600 billion euro.
Bernd Bohr, the auto division boss, said that the forecast for 2012 was too optimistic and that for this year he expects sales to rise by 3% to 5%, but to reach this target cuts have to be made. Bohr added that although growth revenue during the first six months of 2012 matched the company’s expectations, the sluggish sales in South Europe made Bosch miss its target for the entire year.
For 2013 the company expects stable revenue in Europe, but growth in the US, India and China, as Bosch plans to expand in the gasoline direct injection. Still, the company does not plan to close any plants in Europe, because a supplier can easily adapt to the average demand by making adjustments.
“We are going to reduce the investment budget. 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. But we won’t cut r&d since we can only continue to differentiate ourselves from the competition through innovation,” said Bohr.