Bosch May Close German Factory Amid Uncertainties

TapTechNews September 21, the CEO of automotive parts supplier Bosch, Stefan Hartung, said on the 21st (today) local time that the possibility of closing the electric vehicle dedicated drive motor factory in Hildesheim, northern Germany has not been ruled out, nor has the possibility of further layoffs; the company held a meeting with employee representatives to discuss how to ensure competitiveness, and the economic situation makes the demand outlook difficult to predict.

Stefan Hartung said, "The current economic situation makes it very difficult to make predictions. For example, currently no one can seriously predict in which areas and what kind of production will be needed in five years. Therefore, the transfer or reduction of production capacity cannot be ruled out."

Regarding the possible closure of the electric vehicle factory in Hildesheim, northern Germany, Stefan Hartung said, "No decision has been made on the issue of this factory". He said that there is no adjustment decision for this factory yet, but Bosch will negotiate with employee representatives in order to ensure competitiveness.

But he added that if some factories completely cannot maintain economic benefits, it will be a "new situation". Last year, Bosch reached a job security agreement until 2027 for about 80,000 German employees with employee representatives.

At present, 7,000 jobs at Bosch are at risk, nearly half of which come from the core business automotive technology field. Bosch also produces heat pumps, household appliances and power tools. However, Stefan Hartung told the Frankfurter Allgemeine Zeitung in July that Bosch "encounters demand problems in almost all areas".

According to TapTechNews' previous report, the Bosch Group achieved sales of 91.6 billion euros (currently about 720.984 billion yuan) in 2023, an increase of 8% (nominal increase of 4%) after adjusting for exchange rate effects. The EBIT margin was 5%, achieving a slight increase compared to 2022 (the EBIT margin in 2022 was 4.3%).