Bosch Creates New Entity with Its Automotive Division
Faced with growing competition in the global marketplace, German manufacturing giant Bosch plans to transfer its automotive operations to a wholly-owned subsidiary as part of a broader reorganization aimed at optimizing the group’s corporate structure.
Under the plan, Bosch’s Mobility business—which is the world’s largest auto parts supplier on its own—will be spun off from the parent company, Robert Bosch GmbH, and will operate through wholly owned limited liability companies (GmbHs) governed by German law.
“We are operating in an increasingly demanding environment across all our markets. The emergence of new competitors, particularly from Asia, is intensifying competitive pressure,” said Christian Fischer, chairman of the board of management of Robert Bosch GmbH, when announcing the decision.
The executive stated that this environment means Bosch must “bring innovations to market even faster, substantially simplify structures and processes, and accelerate our overall pace to stay ahead.”
As an independent subsidiary, Mobility will oversee and coordinate its activities more directly across the various operating units. Bosch Digital, Global Business Services, and Global Real Estate will undergo the same transition.
This transition will affect approximately 62,500 employees in Germany, most of whom are in the mobility sector; they will be transferred to the newly created subsidiaries along with their employment contracts.
