The automotive supplier is investing in its future – but is it enough?
(Photo: dpa)
Mechanics, electrics, electronics. This triad has been a guarantee of success for Bosch for decades. The automotive supplier rose to become a global corporation with systems such as diesel injection technology and driving stabilization. In the digital future, this triad is no longer enough. Chips with intelligent software are the keys to transformation.
Bosch is the only traditional automotive supplier that holds this key in its own hands. With an investment in the billions in the semiconductor business, the group is also opening the door to transformation.
But fast enough? Bosch is a cautious company, groping its way forward and seeking protection in diversification. Chips and software are not only needed for increasingly autonomous electric cars, but also for household appliances, power tools and building and industrial technology.
The investment plan is already a big deal for Bosch in its current form. When it comes to chips and software, however, there are competing specialists with significantly greater financial strength than the Swabian conglomerate – despite sales of EUR 80 billion and an equity ratio of 45 percent.
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Even if Bosch, with its domain knowledge of physical systems in the mobility sector, certainly understands more than the tech companies, Bosch would have to do a lot more to outperform the competition.
Foundation holds back the investment
But that would require a more brutal corporate restructuring than is socially acceptable for the foundation group. With such a high stake, the risk in the event of failure would also be existential. The Bosch boss Stefan Hartung prohibits the foundation corset. He is left with the controlled offensive:
- Three billion euros investment for chips.
- Ten billion for digitization.
- In addition, a billion for fuel cell technology.
- Half a billion for green hydrogen
- …and then another 250 million for start-ups.
Bosch is once again attempting a diversified approach, a multi-sounding approach, when setting off into the future. Hoping the next big thing will be there.
The appearance of the Bosch Group is changing. Bosch in transformation, Hartung the transformer. If you think of shape-shifting robots, there are definitely parallels: in the films, a lot of sheet metal parts break, the main thing is that the intelligent inner workings remain intact. This part becomes Hartung’s challenge.
More: Bosch has examined Spac deals for the e-drive and lidar division