The German industrial giant Bosch witnessed a significant decline in profits last year, with earnings dropping by nearly a third. This downturn is attributed to lackluster sales of electric vehicles across Europe and a broader global economic uncertainty.
As a key supplier to the automotive industry, Bosch has been affected by the industry’s broader struggles with diminishing sales and profits, which inevitably impact associated suppliers.
In addition to its automotive components, Bosch produces air conditioners and washing machines. However, the company saw a substantial workforce reduction, bidding farewell to 11,500 employees last year, and has indicated the possibility of further “painful decisions” due to ongoing challenges. Currently, Bosch employs approximately 418,000 individuals globally.
CEO Stefan Hartung has advocated for a reduction in bureaucratic red tape and high energy costs in Germany. Hartung believes such measures are essential for Germany and Europe to maintain their positions as leaders in the global economic and technological arenas.
The challenges are particularly pronounced in China, where German car manufacturers face stiff competition, resulting in reduced sales. Consequently, German firms, including Bosch, are burdened with excessive inventories and underutilized production facilities.
Despite these issues, Bosch reported a profit exceeding 3 billion euros last year, while revenues slightly declined to around 91 billion euros. Looking ahead, the group aims for a 6 to 8 percent annual growth rate through 2030, reflecting its commitment to overcoming current adversities and achieving long-term success.