Bosch will not escape the bitter potion. The current, more violent reversal of the global automotive market, coupled with the drop in diesel sales, puts the German automotive giant under pressure, he who still signed the best results in his history two years ago.
“Of course, we must react to the decline in demand,” enthused Volkmar Denner, the boss of the equipment manufacturer, in an interview with the daily newspaper “Süddeutsche Zeitung”. “There will be an impact on the employees,” especially those who belong to factories specializing in diesel, he warns. A message that addresses, among others, employees of the French factory Rodez.
“Not a short bump”
To his eyes, the contraction in the global market observed in the first half (-7%) is a lasting phenomenon. “This is not a short bump, which can be quickly caught,” Judge Volkmar Denner, who, because of his duties, is particularly well placed to understand the developments in the sector.
As a result, the group’s finances will be worse this year, compared to previous vintages. Unlisted, Bosch now anticipates a stable turnover rather than a slight increase, and estimates that it can no longer reach a margin close to 7% as in 2018.
“In addition to the weakness of the market”, the decline of diesel “touches us particularly”, says Volkmar Denner. In January, Bosch said that the move had already cost 600 jobs out of the 15,000 devoted to this technology in Germany.