This week, aftermarketNews learned that Bosch may be looking to sell off parts of its North American brake business. 
Becky McDonald, a spokeswoman for the company, confirmed the report with an official statement from Bosch.
“Bosch has begun reviewing alternatives for its North American Foundation Brake Business, including discussions with a prospective buyer,” the statement said. ”Included among these alternatives is the possible sale of certain Bosch U.S. assets. No decisions have been made at this time and there can be no assurance that any decision will result in an agreement between the companies.”
In OEM terminology, “foundation brakes” includes the caliper, rotor, brake pads and attached mechanical components used to stop the vehicle. While the components are simple, the cost to engineer a new vehicle’s foundation brake system can be extremely expensive and less profitable when compared to high-value components like the ABS system.
Bosch’s North American brake division consists of seven manufacturing locations in North America, two headquarters locations (engineering, sales and administrative operations) and a proving ground. The North American Foundation Brake business is part of Bosch’s overall North American brake division.
The statements from Bosch indicate the possible transaction will involve just the North American OEM operations and not the Aftermarket division.
In May, the company announced management changes in its Automotive Aftermarket Division North America, which the company said were “made to support the recent growth within the Bosch organization and position the company to better serve its customers now and in the years ahead.” Last month, Bosch announced an $8 million investment in its vehicle test track in Flat Rock, Mich. The renovation included reconfiguring the test facility to accommodate Bosch’s vehicle dynamics and foundation brake testing.
* Brake & Front End Editor Andrew Markel and AMN Editor Amy Antenora contributed to this report.
