Bosch announces AV and EV push
Bosch, the world’s number one automotive supplier, did very well in 2018 but is more cautious about 2019. The company has also announced a push into autonomous driving systems.
The supplier said 2018 sales rose 1.5% to €77.9 billion. Its automotive division, which accounted for 47 billion in sales, performed particularly well, going up 2.3% in sales.
Earnings before interest and tax (EBIT) reached €5.3 billion, which is likely to yield an EBIT margin from operations of 6.9%.
Bosch said it is looking to expand a research alliance on self-driving vehicles by opening up to other partners, besides their current partner Daimler.
“We always said we are open for others to become partners,” said CEO Volkmar Denner, “and there are talks.”
By 2025, Bosch plans to achieve €5 billion in sales in electromobility.
Over the next three years, Bosch plans to invest €4 billion to develop self-driving cars. The company is also investing in reservations, payment and parking, recharging, maintenance and infotainment.
“Driverless driving will be a game changer for individual mobility,” said Mr Denner. “It will open the door to disruptive business models such as robotaxis and shuttle-based mobility.”
Bosch also announced its ambitions to electrify the transportation of goods and to develop expertise in artificial intellingence.
Outlook for 2019
Due to looming Brexit, threats of a trade war between the US and China and other geopolitical factors, Bosch is less optimistic about 2019 but still expects the global economy to grow by 2.3%, adding it hopes to develop better than its markets.
Image: Mercedes car equipped with Bosch self-driving technology (source: Bosch)