Bosch attributes its poor performance to global economic challenges
Robert Bosch plans to strengthen competitiveness with strategic investments
German autoparts supplier Robert Bosch is setting ambitious goals for 2025, despite facing significant global economic challenges.
The company acknowledged that a sluggish global economy, coupled with slower-than-expected growth in emerging markets, has affected its recent performance. However, Bosch remains hopeful about achieving moderate growth in the coming year, reports Investing.com.
Targeting Long-term Growth
Chief Financial Officer Markus Forschner revealed that Bosch intends to strengthen its competitiveness by implementing a combination of careful savings and strategic investments.
While the company plans to enhance its operations, Forschner emphasized that achieving these goals will require substantial effort and potentially tough decisions. Though he refrained from providing specific details on the nature of these actions, the company's long-term outlook remains optimistic.
Bosch has set an ambitious target for growth, aiming for an average annual growth rate of 6% to 8% by 2030. Additionally, the company is targeting a profit margin of at least 7% by 2026, underscoring its commitment to improving its financial performance over the next few years.
Job Cuts and Auto Industry Downturn
In response to an increasingly challenging outlook for the auto industry, Bosch announced in November 2024 that it would eliminate up to 5,550 jobs in the coming years. The job cuts reflect broader trends in the automotive sector, where companies are adapting to changing market conditions.
As of December 31, 2024, Bosch employed 417,900 people globally. The company’s efforts to streamline its operations and adjust to new economic realities will likely shape its future trajectory in the industry.
With a clear focus on savings and investment, Bosch is positioning itself for the long term. However, its ability to navigate the challenging global economy and achieve its growth targets will be closely watched in the coming years.
Additionally, Nissan Motor has postponed the announcement of its potential merger with Honda Motor to mid-February, according to a company spokesperson.
