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Bosch Mexico continues growth path


05/04/2016 | Mexico | Corporate News

10 production sites across the country

  • Consolidated sales of 15.2 billion pesos in 2015
  • More than 13,000 associates nationwide
  • Investments, Bosch Industrial Footprint in Mexico

MEXICO, Mexico City – Bosch, a leading global supplier of technology and services, reported consolidated sales in Mexico of $15.2 billion pesos during the 2015 fiscal year. This represents a growth of 4 percent in local currency compared with 2014. These results attest to the company’s solid development for the seventh consecutive year, a clear illustration of how consumers trust in the products offered in the different markets in which Bosch participates. “Bosch excels through its high innovative spirit, its cutting-edge technology, connected solutions, and social responsibility” said René Schlegel, CEO of Robert Bosch Mexico. “These characteristics along with a focus on customer benefit through products and services that make their life safer, more efficient and more comfortable, allowed us to grow for the seventh consecutive year in Mexico and will remain key pieces in the development and growth the coming year” Schlegel added.

Bosch’s Investments, Industrial Footprint in Mexico

In 2015, the investments of more than $2.6 billion pesos announced for the plants lo-cated in Toluca, Juarez, and Hermosillo were materialized with the expansion of their buildings, allowing Bosch to bring new and important top-technology production lines in order to provide the local market and the Americas.

During 2016, Bosch will continue investing in Mexico, mostly through the expansion of its plants. In 2016, the focus of investment will be in the plants located in Aguasca-lientes and San Luis Potosi. In both cases, apart from creating new jobs and increas-ing production, new cutting-edge production lines will be installed.

One of the major investment announcements made in 2016 was that Bosch will be establishing a new facility, the sixth in Mexico for the automotive market and the 11th for Bosch in Mexico. This new factory is being built in the state of Querétaro, has a surface of 15,000 square meters and an investment of 1.4 billion pesos. Bosch plans to hire approximately 600 associates by the end of 2019 which will assemble three products for passenger cars: manual-adjust steering columns and two variants of electric power steering, Servolectric® column type and Servolectric dual pinion. “Building this new automotive manufacturing facility is simply another way to show that the Bosch Group is confident with respect to the country’s future growth poten-tial and development,” said Schlegel. “It also strengthens our local-for-local strategy, with which Bosch has created an industrial footprint in Mexico.”

More than just a Work Team

Every year, Bosch Mexico acknowledges that the company’s growth in the country is based on the good work of the associates. “We have been successful in creating more than just a work team; we have created a family in which every associate has a position and a role to perform, with different responsibilities, but at the end, we are just one Bosch.” This working methodology makes a difference and has allowed Bosch Mexico to have nearly 13,000 associates by the end of 2015. For 2016, Bosch will continue offering opportunities for Mexican talent to join their team, mainly through the MEXcellence program that is helping students of academic excellence in public universities as University of Mexico, National Polytechnic Institute, and University of Guadalajara.

Sustained Growth across all of Bosch’s Business Sectors

Mobility Solutions

Drawing on the strong dynamism of the manufacturing facilities and through the ap-plication of new customer service strategies, as well as business models, the Origi-nal Equipment divisions reported double-digit growth. One of the main topics pro-moted by this division is the use of ninth-generation antilock braking systems and of ESP® (Electronic Stability Program). These systems are manufactured at the Bosch plant in Aguascalientes, and save lives by providing more security while driving. Ad-ditionally, this division holds to its strong focus on car connectivity, as well as to the application of systems that conserve energy and are environmentally friendly.

Signing the Pro-Sustainability Agreement

One of the newly introduced business models is based on the signature of an agree-ment with Skygo Fuel Systems LLC to maximize energy efficiency in diesel engines for industrial application. This is done through a system of components installed in engines that work with dual fuel (compressed natural gas and diesel). The main ben-efits for users are reductions of 60 percent in diesel consumption, and reductions of 22 percent and 19 percent in emissions of CO2 and NOX, respectively. Cementos Moctezuma will be one of the first customers to apply this new system.

In the Automotive Aftermarket, growth was healthy, based on the launch of new products such as new automotive spark plugs and Clear Max 365 wiper blades, to mention some of those with the highest acceptance and demand among the con-sumers in this market because of their excellent performance and quality.

With nearly 40 percent growth, Automotive Service Solutions has increased its po-sition within the automotive aftermarket. Its main reason for increased sales was the deep penetration achieved within the service for the automotive manufacturers mar-ket, where it has acquired a strong presence after proving and showing the high quality and the reliability offered under the umbrella of Bosch.

Energy and Building Technology

The Security Systems division reached a double-digit sales increase by in 2015; this figure sets a historical precedent since the division first started in Mexico. This growth was achieved thanks to the introduction of cutting-edge safety solutions in the Mexican market. It attracted new customers and important projects as well as Elec-tro-Voice with professional, novel, high-powered but mostly high-fidelity sound sys-tems, they become positioned as a consumer’s favorite, supporting this double-digit increase in sales.

In this business sector, 2015 was an excellent year also for the Thermotechnology division. The division grew also double-digit. This increase is due to strong growth in the demand of products in Mexico because of the quality and huge variety offered, from heating appliances for private households to industrial boilers. “The demand and penetration achieved by the division in the last few years in the Mexican market built the basis for the opening in 2015 ― a proud moment for Bosch associates ― of

the first Gas Point-of-Use Water Heater Plant in the Americas located in Tepot-zotlán,” Schlegel said.

The investment made in this heater plant was roughly $111 million pesos. The plant will have around 100 associates by the end of 2016, and its production provides for the local market and Latin America.

Consumer Goods

By introducing new and advanced products into the Mexican market, by following-up and meeting the needs of the distribution channels, the Bosch Power Tools division continued its successful development, achieving healthy double-digit growth in sales during 2015. Keeping close to final consumers through social media and by offering trainings for the appropriate knowledge and handling of the products the brand be-came top-of-mind among consumers.

An example of the success of this division is reflected in the production at the Mexi-cali plant, which manufactures all of Bosch´s rotary, oscillating and multi-saw tools, which are a major tool categories for the company worldwide.

In 2016, the division will continue to promote its e-commerce presence with the sole purpose of maintaining and strengthening communications channels with its clients and consumers.

Industrial Technology Sector

Bosch Rexroth the drive and control technology division, reported double-digit growth during the 2015 fiscal year. The strategies behind this growth are the focus on different industrial sectors, the product quality and the strength of customer ser-vice-oriented sales. The growth has made possible the planned opening of a new of-fice at the end of 2016 in San Martin Obispo, State of Mexico.

Also in 2015, Bosch Packaging Technology and Grupo Hubapac S.A. de C.V. es-tablished a fifty-fifty joint venture in Mexico. Hubapac specializes in the sale and ser-vicing of packaging technology for customers in the Mexican pharmaceuticals indus-try. The aim of the new joint venture is to expand the market share of packaging technology and related services in Mexico. The company has been a sales partner of Bosch Packaging Technology in Mexico since 2006. With a volume of some $17 bil-lion US dollars, Mexico is one of the most important pharmaceuticals and cosmetics markets in North America. It also is one of the top 10 markets globally in the food processing sector, with a market volume of around $93 billion US dollars.

Germany year in Mexico

Germany has a long history of immigration to Mexico, with many business people having established businesses in Mexico over the past several decades. The Dual Year of Germany in Mexico celebrates this history of cooperation that bore many of the German firms established in the country, as is the case of Bosch in 1955.

This steadfast relationship between these two nations is worthy of celebration and is a starting point to continue growing and forging alliances in the future. Therefore, Bosch is a major sponsor of the Dual Year. Schlegel said, “We feel close to innova-tion, urbanization, mobility, safety, cultural exchange and diversity topics and with the Dual Year initiative one reaches the general public to easily communicate about these topics. People will have the chance to go to different venues to participate in educational, cultural, gastronomic, and sports events and at the same time to learn more about both countries.”

Bosch Mexico will be in the Made in Germany exhibition, which will take place from June 15-19 this year. During their visit, visitors will get to know the German com-pany’s culture and the diverse solutions Bosch offers to different Mexican markets, as well as to experience Bosch products.

Bosch Group business outlook for 2016

Following a record year in 2015, the Bosch Group wants to continue its growth trend this year. The leading global supplier of technology and services expects worldwide sales to grow within an exchange rate-adjusted range of 3 to 5 percent in 2016. Speaking at the company’s annual press conference in Germany, Bosch CEO Volkmar Denner said: “We plan to grow not only with innovative products, but also with innovative services.” In the connectivity business, Bosch focuses on the “3S’s”: sensors, software, and services. The company is increasingly using connected ser-vices to build on its broad basis in the hardware business. As it does so, Bosch ben-efits not just from its technological diversification, but also from its wide-ranging in-dustry and domain expertise. The newly created Bosch Global Service Solutions di-vision, the recently established Bosch IoT Cloud, as well as the Bosch Smart Home System launched at the start of 2016 contribute to this strategy.

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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