The transformation in the auto industry and the economic situation are causing problems for Bosch. The group wanted to reach an important target by 2025 at the latest. That won’t work for the time being.
The world’s largest auto supplier Bosch needs more time to achieve its sales and profit targets. “We are not making any compromises on the goals, but we have to take note of the economic realities in the environment – even if that leads to a delay of one to two years,” said CEO Stefan Hartung to the “Handelsblatt”. 2024 will be more difficult than expected, and 2025 will probably be too. “We are currently discussing which delays will allow us to achieve which return and sales targets.”
The technology group originally wanted to achieve its target return of seven percent in the 2024 or 2025 financial year. The group says it needs this for its financial independence. However, Hartung stuck to his goals for 2023: “We are still aiming for a margin of five percent this year. It is achievable, but there are still currency risks in China and Turkey, for example.” But five percent is not enough to be able to grow dynamically. “It is clear that we have to continue to work on performance.”
The change in the automotive industry – from combustion engines to electric motors and hydrogen – poses major challenges for Bosch. Only last week it became known that the company was considering major job cuts in the drive division.
Source: Stern
