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Bosch Mexico continues growth in all business sectors


05/13/2015 | Mexico | Corporate News

Mexico City – Bosch, a leading global supplier of technology and services, reported consolidated sales in Mexico of USD 988 million (744 million euros) in 2014, which represents a 5.7 percent increase compared with the previous year. This result shows a consecutive year-on-year growth for six years, supporting the company’s position as an innovative, high-technology, sustainable, and socially responsible company in the Mexican market. “The positive development reflects the effort of our associates in Mexico and represents an important challenge, as we aim to maintain this development also in the years to come,” said René Schlegel, president of Robert Bosch Mexico. “We expect 2015 to be a successful year for Bosch in Mexico, especially for our Mobility Solutions business as we have already seen a strong development in the first quarter of the year.”

Positive development across all Bosch business sectors

In 2014, all four business sectors of Bosch developed well in Mexico. The Mobility Solutions business sector, which was formerly named Automotive Technology, registered double-digit growth. Its Automotive Aftermarket division launched over 500 new products to the market throughout the past year, expanding the existing product lines for battery and Diesel Diagnostic Equipment, as well as introducing three new spark plug models. The promotion of the Wheel Service as well as of the OTC (Owatonna Tool Company) Diagnostic Equipment also contributed to the positive development. The Diesel Systems division signed a strategic alliance with the HJS Company for the application and commercialization of particulate filters that will reduce the pollutant emissions by 90 percent, complying with the Bosch philosophy of offering solutions that are ‘invented for life’ and contribute to environmental protection.

The Industrial Technology business sector also developed well, as Bosch Rexroth increased its scope and presence in Mexico by participating in projects in the energy industry. In 2015, the division will focus their efforts and experiences to obtain modernization projects in the automotive and energy industry, including the offering of professional technical service.

Bosch’s Consumer Goods business registered a stable development, due to the Power Tools business maintaining its sales level and launching around 70 new products in 2014. This year, Bosch Power Tools started its e-Commerce business and will continue to expand its product portfolio, focusing specifically on the new line of cordless tools and chargers.

The Energy and Building Technology sector registered double-digit growth in the past year. The Thermotechnology division contributed to this development by participating in large water heating projects for the Mexican industry and introducing new products, such as: instantaneous, solar, and electric heaters. The Security Systems division also expanded its product portfolio, as well as its highly qualified and certified distribution network. In 2015, the division will launch new integrated solutions, which are tailored to the local market needs. Bosch’s Security Systems plant located in Hermosillo will use the larger brand-new facilities this year, which will allow the division to increase the production volume and to further improve logistics processes. “With the facilities we can further strengthen our localization strategy in Mexico to offer products for our local customers,” said Schlegel.

60 years of technology and innovation for life

2015 marks the 60th anniversary of Bosch in Mexico since the setup of the legal presence in 1955. Bosch’s footprint in the country started with a single sales office focused. Today, Bosch operates ten sites in Mexico – eight production plants, five of them automotive, one of power tools, one of security systems, one of hydraulic and pneumatic systems; a central business office located in Mexico City; and a development and business solutions center in Guadalajara. Driven by the country's growth and importance of North America to Bosch’s overall growth, the company continuously invested in Mexico, including into local manufacturing and engineering. In the past ten years, Bosch invested more than 400 million euros and has doubled its workforce in the country to almost 12,300 by April 2015. This figure includes associates from the Bosch’s complete acquisitions of BSH Bosch und? Siemens Hausgeräte GmbH (now BSH Hausgeräte GmbH), and ZF Lenksysteme GmbH (now Robert Bosch Automotive Steering GmbH), that were previously joint ventures.

Commitment and recognition of the Bosch associates in Mexico is important for the company. Bosch places great value on the decades of expertise that retired associates have acquired. Therefore the ‘Bosch Management Service Mexico' program was launched in 2015. As an expansion of a global program, Bosch Management Service Mexico provides retired associates opportunities to leverage their know-how and expertise through the application of these skills to Bosch projects. The idea behind the approach bears clear advantages: Bosch benefits from maintaining in-house core competencies and experience, and the knowledge and experience of senior experts continues to be valued after retirement.

Continuous investment in Mexico – New instantaneous heater plant

“Bosch is committed to continue the expansion of its footprint in Mexico, reinforcing the strategic importance of this region as manufacturing and development location to Bosch’s global strategy,” said Schlegel. Underlining this commitment, Bosch will open the first instantaneous heater plant in America in June 2015, which will be located in Tepotzotlan, State of Mexico. The new plant's production will meet the increasing demand in the Mexican market and in the future will supply other locations in Latin America. The site will have a research and certification center, and approximately 100 new jobs will be generated. “The plant in Tepotzotlan will offer clear advantages in terms of competitiveness and positioning in the market for hot water technology in the residential sector. We can now adapt our products in a better manner to the needs of the local market and of Latin America," said René Schlegel.

Another major investment in the Mexican market is the growth plan in Toluca and Ciudad Juarez, which includes an investment of approximately 460 million dollars (336 million euros) for the expansion of these plants. It was implemented in 2013 and is expected to be concluded in 2018. The plants will be expanded both in square meters as well as in production lines, generating around over 4,000 new jobs opportunities and development for Mexicans. The Bosch Development and Business Solutions Center was opened in mid 2014 in Guadalajara, Jalisco. This opening established Bosch as a flagship within the new Digital Creative City by being the first high technology company to establish itself in this complex.

Committed to education in Mexico

Bosch Mexico, committed to the academic support of students with high potential, has set in motion the “MEXCellence” university scholarship program. The objective is to encourage low-income, high-potential students with excellent academic results to complete their studies in the main public universities of the country, such as the UNAM (National Autonomous University of Mexico), IPN (National Polytechnic Institute), and UDG (University of Guadalajara).

In 2014, nine scholarships were granted to students pursuing commercial and engineering careers. The scholarships cover costs for meals, accommodations and transportation expenses during the school period. “For Bosch Mexico it is important to support the education of young Mexicans with less income and high potential, because we prevent the loss of talent that will become the support for the growth of companies and the country,” said Schlegel.

Bosch Group business outlook for 2015

The Bosch Group expects global sales to grow within an exchange rate-adjusted range of 3 to 5 percent in 2015. Speaking at the company’s recent annual press conference in Germany, the Bosch CEO Volkmar Denner said: “Our economic and technological strength in established business fields is enabling us to tap into new market segments.” Web-enabled products and internet-based services are one of the focal points of the company’s future business. “We are driving connectivity forward in all our business sectors and playing an active role in shaping it,” Denner added. In 2014, Bosch launched many new products and connected solutions, including software solutions for smart heating systems and buildings as well as for connected industry and connected mobility. With the complete acquisitions of BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH, Bosch has strengthened its position in the fields of smart homes and automated driving.

Having established a regional presence in 1906 in North America, the Bosch Group employs some 28,700 associates in more than 100 locations, as of April 1, 2015. In 2014, Bosch generated consolidated sales of $12.6 billion in the U.S., Canada, and Mexico. For more information, visit and .

The Bosch Group is a leading global supplier of technology and services. It employs roughly 390,000 associates worldwide (as of December 31, 2016). The company generated sales of 73.1 billion euros in 2016. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. As a leading IoT company, Bosch offers innovative solutions for smart homes, smart cities, connected mobility, and connected manufacturing. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its customers connected, cross-domain solutions from a single source. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.” The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing and sales network covers nearly every country in the world. The basis for the company’s future growth is its innovative strength. At 120 locations across the globe, Bosch employs some 59,000 associates in research and development.

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant upfront investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

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