Bosch wins electromobility orders worth $14 billion

Bosch wins electromobility orders worth $14 billion
Fusion Studio TIFF File
Published: 16 September 2019 - 6:45 a.m.
By: PMV Staff

Since the beginning of 2018, Bosch has won electromobility orders worth roughly $14 billion (€13 billion), including production projects for battery-electrical powertrains for passenger cars and light trucks.

According to Bosch, the mobility solutions business sector is developing better than the global automotive production in 2019. Despite the market’s current significant downward trend, the sector’s sales from operations will come in at just under the previous year’s level.

Dr. Volkmar Denner, chairman of the Bosch board of management, said: “The transformation of mobility entails challenges, but also opportunities. We want to grasp them. Technologically, Bosch is approaching the mobility of the future with an open mind. It is both further refining conventional powertrains and fast-tracking electrification. In addition, the company is working to make mobility automated, connected, and personalized. One key to this lies in electronics and software. The company’s mobility operations currently employ some 14,000 software engineers, and annual expenditure on software expertise comes to €3 billion. The objective is to keep people mobile in an eco-friendly way and to ensure that mobility is accessible to everyone. Bosch is making mobility climate-friendly and affordable.”

Each year, the company invests around €400 million in emissions-free mobility. Bosch has a broad electromobility offering, ranging from bikes to trucks, and from mild 48-volt hybridization to the fully electrical powertrain. Bosch is aiming to achieve a leading position in the market with its 48-volt battery and has concluded a long-term cooperation agreement with the Chinese company Contemporary Amperex Technology Co. Limited (CATL) for the production of battery cells. At the start of the year, Bosch forecast sales of €5 billion by 2025 with electromobility components and systems for passenger cars and light trucks. Now it expects to exceed that figure. Bosch also wants to create a mass market for fuel cells and is taking them into production. Here, economies of scale will also help make the manufacture of this still expensive technology more cost-effective.

“Whatever the technology that brings about emissions-free mobility, we have to get the market to accept it. We will only manage that with affordable solutions. If we don’t offer them, we won’t help stop global warming,” says Denner.

In 2030, three-quarters of new vehicles will still have a conventional engine under the hood, some of them with electrical support from a 48-volt system or a plug-in hybrid. For this reason, Bosch is making not only the diesel engine but also the gasoline engine more efficient. Its most recent advance uses modifications to the engine and modern exhaust-gas treatment to bring particulate emissions from gasoline engines down to a level as much as 70% below the Euro 6d standard, even in real driving conditions. Bosch also wants to minimize particulate emissions from braking. Developments here include the iDisc, which generates as little as 10% of the brake dust produced by a conventional brake disc, and the regenerative braking system, which can cut brake dust by over 95% in electric vehicles.

Bosch is also posting substantial business success in automated driving, particularly driver assistance systems. In this area, Bosch will generate 12% growth this year, and sales of €2 billion. For the next levels of automated driving, Bosch will invest €4 billion up to 2022. For the US and Asian markets, Bosch is currently developing level 2 systems that allow drivers to take their hands off the wheel on the freeway. In Germany, Bosch and Daimler were recently granted the world’s first approval for a level 4 system – automated valet parking in the parking garage of the Mercedes-Benz Museum in Stuttgart. This automated valet parking service has thus progressed beyond the prototype stage. By the end of 2021, it is expected that a dozen other parking garages will be equipped with automated valet parking.

The transition in the mobility industry is giving rise to new market players. Bosch is working with DiDi, Lyft, and Uber – the three biggest ride-hailing providers, who already arrange more than 50 million rides a day worldwide. DiDi, which is the leading Chinese provider of mobility services, is using Bosch’s cloud-based battery services to help increase the service life of their vehicle batteries.

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