Because in Germany Bosch brakes and cuts
What is happening in the auto industry in Germany. Bosch case and beyond
The economic crisis bites the sides of German companies, forcing even the most prestigious ones to review their development plans. Cuts (in jobs) and savings (in investments) are the words on the agenda, in a phase in which increasingly signs of uncertainty are also arriving from the government, as demonstrated by the failure to approve the 2024 budget by the end of this year. year and the use of the provisional exercise.
THE BOSCH CUTS
On the industrial front, the news of the day comes from Bosch, the world's largest manufacturer of car components, which according to an article published by the sector weekly Automobilwoche is preparing a slimming treatment for its staff with forecasts of job cuts of up to 15% in development and research sector. At the Stuttgart-Feuerbach and Schwieberdingen sites in Baden-Württemberg alone, at least 1,500 jobs will be lost by the end of 2025, writes Automobilwoche citing an anonymous internal source, according to whom "after production, the focus is now on the areas indirect".
The article reports a 10 to 15% cut in jobs in the research and development sector and if the numbers revealed are based on information from anonymous sources, the comparison with the unions is confirmed by the company itself. “Although we want to maintain our employment level as best we can with new products and various qualification measures, we will have to adapt this to the order situation in some areas,” a Bosch spokesperson told the weekly. The dismantling will have to be carried out in a socially acceptable manner, he continued, referring to ongoing negotiations with the works council.
The talks with the workers' representatives have actually been ongoing for months now. Last July the parties reached an initial agreement that excluded compulsory dismissal for the approximately 80,000 employees in Germany of the main Mobility division, currently undergoing a turnaround, until the end of 2027.
THE TRANSFORMATION OF THE AUTOMOTIVE INDUSTRY
“We are proceeding step by step and developing specific measures for each location,” the spokesperson added. Automobilwoche writes that Bosch justifies the job cuts with high upfront expenses and lower employment needs in the electromobility sector, as well as with a weak global economy that has reduced orders.
According to the Group, the transformation of the automotive industry will have a strong impact on the entire sector in the medium term. The transition to electromobility requires a high level of initial expenditure and is accompanied by a decline in employment requirements. The weakness of the global economy, persistent inflation, caused among other things by the increase in energy and raw material costs, and the negative effects of exchange rates are worsening the situation.
THE PROBLEM OF GERMANY
The budgeted cuts in Bosch's research and development division confirm the alarm raised a few days ago by a report by the German Chamber of Industry and Commerce (DIHK) on the innovation capacity of companies based on a survey involving 2,200 companies. This research shows that in 2023 the German economy's propensity to innovate has fallen to its lowest level since 2008, the year in which the first of these reports was published, and that one in six companies even intends to reduce their innovation activities in next twelve months.
SPLIT-OFF PLANS?
Returning to Bosch, on the production level a few weeks ago Handelsblatt cited financial circles according to which the industrial group from Baden-Württemberg was considering the possibility of separating itself from the business of products with surveillance cameras and fire detectors. “The management is currently examining possible options for the building safety division (Security and Systems),” wrote the business daily, “and in financial circles it is considered possible a sale of shares of companies or individual companies, such as those of surveillance cameras".
But the decisions “have not yet been taken”, the Handelsblatt continued, “talks are underway with the banks on the subject, but so far no sales consultant has been selected. First, the business to be sold would have to be separated from the company, which would take a few months.”
The business of such products, which includes smart cameras, entrance control devices and conference solutions, as well as alarm systems, is part of the Bosch Building Technologies business unit, founded in 2018. It also includes the areas of building automation, of services and systems integration. Bosch completed this picture only in July with the acquisition of the US company Paladin Technologies, which has 1,500 employees and a turnover of 400 million euros. In the financial year 2022 the entire Building Technologies sector had generated a turnover of 2.5 billion euros, employed around 10,900 people worldwide and produces in its own factories in Europe, America and Asia.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/bosch-tagli-germania/ on Mon, 11 Dec 2023 06:47:27 +0000.