Bosch: The impact of the lack of cores in 2022 will continue, and there is no intention to invest in new plants

Bosch expects global vehicle production to reach around 85 million units in 2022, up from more than 80 million last year, but about 8 percent lower than in 2019 before the pandemic, due to chip shortages and rising raw material costs. "There is still a lot of uncertainty about the lack of cores." Stephen, chairman of the board of directors of the Bosch Group, said.

Even machines that make chips require chips to work, making the impact of a lack of chip supply even more apparent. said, Hopefully, in 2023, we can achieve chip freedom. It is understood that in addition to investing in chip production sites in Dresden, Stuttgart and Penang, Bosch has no intention of making further investments in chip production.

Auto parts supplier Bosch expects chip shortages and rising raw material costs to continue to impact vehicle production this year. "In 2022, global vehicle production will reach about 85 million units, up from more than 80 million last year, but about 8 percent lower than in 2019 before the epidemic," Bosch said.

Image source: Bosch China official website

"There is still a lot of uncertainty about the lack of cores." Stefan Hartung, chairman of the board of directors of Bosch Group, said on Wednesday that Bosch plans to spend 400 million euros ($457 million) to expand the construction of chip facilities in Germany and Malaysia to help alleviate the bottleneck of missing cores.

At the beginning of this year, Hadong officially took the helm of the Bosch Group and is committed to adapting to the transformation of the automotive industry to pure electric and digital services. Last month, Bosch announced that it was working with Volkswagen to develop a common software platform to bring self-driving capabilities to Volkswagen to catch up with Tesla.

said Bosch must improve its software capabilities while limiting layoffs for more than 80,000 employees, who make up about one-fifth of the total, whose jobs are related to fuel vehicle technology. "The company has invested 1 billion euros ($1.14 billion) in training programs over the past five years and will invest at least the same amount in the next five years," said Filiz Albrecht, Head of Human Resources at Bosch.

Preliminary data released by Bosch shows that the company's revenue in 2021 exceeded pre-pandemic levels, totaling 78.8 billion euros ($90 billion); EBIT margin was 4 percent, up from 2.8 percent in the year-ago quarter. Bosch expects that "without the interference of other significant factors, revenue will grow again this year." ”

Bosch's main revenue comes from automotive components, but the growth of its mobility solutions division has slowed due to the lack of cores. "Last year, the supply of chips failed to meet the demand for car production, but it will slowly get better in 2022, especially in the second half of the year," Hadong said. ”

Even machines that make chips require chips to work, making the impact of a lack of chip supply even more apparent. said, Hopefully, in 2023, we can achieve chip freedom. It is understood that bosch has no intention of making further investments in chip production, except for investments in chip production sites in Dresden, Stuttgart and Penang. (Compiled by Jiang Zhiwen, China Economic Network)