Bernd Bohr, Head of Bosch's automotive components division says that the company expects higher revenue from the business this year as a result of increased turnover per car. According to a Reuters report, the company is looking to increase its penetration of parts per unit sold across the industry, rather than depend on rising car sales and production to boost its financial performance. Bohr said, "We're growing above all through higher turnover per car, less through higher production levels." In another interview with Automobilwoche, Bohr said that he expected his division to grow by 3% to 5% in 2013.
Significance: As the world's biggest tier one manufacturer of automotive components, and with an unparalleled reputation in the industry for innovation and quality, Bosch is in a good position to increase its penetration rate per vehicle manufactured. Bosch also has an advantage as a result of the higher rate of penetration it has with German premium OEMs, which have enjoyed consistent sales growth in recent years. Bohr also stated that he did not expect the downturn in Europe to have too large an effect on the company structurally. In comparison to OEMs, suppliers tend to run smaller factories set up near each of their customers that employ fewer people. Therefore it is easier for suppliers to make adjustments to production levels and headcounts.
