FARMINGTON HILLS, Mich. – In spite of a cooling global economy in 2012, Bosch has reported strong sales in the company’s Automotive Technology and Industrial Technology sectors, and says the two segments contributed to an 8.1 percent annual sales increase for Bosch in North America. This is the largest year-over-year increase among regions with a Bosch presence for that year, according to the company.
Mike Mansuetti, president of Robert Bosch LLC, commented "In 2012, the North American team effectively leveraged the relatively stable market environment, particularly in the Automotive and Industrial Technology sectors, both of which experienced strong growth in 2012. The Consumer Goods and Building Technology sector, while challenged by slow growth in housing and building starts in the region, maintained a consistent sales level year-over-year. Our dedicated associates helped keep discretionary costs in line, thereby delivering a positive contribution to the company’s performance."
Bosch’s North American operations netted growth of 8.1 percent to $10.6 billion. The company’s North American workforce represents nearly 24,600 people, compared with 22,500 in 2011.
"Bosch will continue to align its business to best meet our customers’ needs while closely monitoring our costs and maintaining a strong results orientation," Mansuetti said. "With stable GDP development coupled with a full-year effect of newly acquired business, we expect the North American region to yield close to double-digit growth in 2013."
In North America, Bosch’s Automotive Technology sector recorded sales of $6.9 billion in 2012, compared with $6.3 billion in 2011, a 9.5 percent increase. Automotive sales accounted for 65 percent of Bosch’s sales in North America.
Business with gasoline direct injection systems was especially successful, the company said, increasing by 50 percent globally. Bosch anticipates the market penetration of clean diesel-powered engines in the U.S. to grow to approximately 10 percent by 2018. Fuel efficiency, safety and driver assistance systems will foster further growth, the company believes.
Mexico and Canada afford further opportunities in region
Mexico, with approximately 8,800 associates, continues to prove a vital part of Bosch’s manufacturing strategy in North America. Mexico generated close to $1 billion in sales, a 15 percent year over year increase. With solid GDP growth in Mexico – which Bosch estimated to be 3.8 percent in 2012 – the country affords Bosch further growth opportunity. In addition, the company’s 600 associates in Canada generated approximately $750 million in sales for 2012. Canada, with its keen focus on sustainable growth and fuel-efficient solutions, also provides future growth opportunities for Bosch.
Investments in North America fuel future growth
Bosch says it positioned itself in 2012 for future growth by making investments in North America that totaled $425 million – an increase of 30 percent and the highest in six years. Investments in 2012 focused on injection systems for passenger and commercial vehicles, hydraulics, acquisitions in the automotive aftermarket, and packaging technology.
"Bosch is dedicating considerable resources and investment in the Americas," Mansuetti said. "In fact, between 2007 and 2012, we invested $2.2 billion in the region. Longer term, the company expects good growth opportunities in both North and South America, where combined sales are targeted to account for more than 20 percent of the Group’s worldwide sales."
In 2012, Bosch committed nearly $1.15 billion to acquire the Service Solutions business of SPX Corp. Based in Canton, Mich., this business develops, manufactures and sells service equipment, repair-shop accessories and software for the global automotive market. Bosch Rexroth opened a new hydraulics manufacturing facility on its existing campus in Fountain Inn, S.C., and this investment allows the Fountain Inn facility to become Bosch’s largest hydraulic manufacturing campus in North America.
For 2013, Bosch expects global sales growth of 2 to 4 percent.
