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Bosch confident of success in electric driving era, too 

By Lee Ji-yoon

BOXBERG, Germany - For Bosch, it was like the divorce of a married couple. "Bosch and Samsung SDI had different mid- and long-term strategic objectives. So we decided to divide the joint venture,” said Bernd Bohr, chairman of Bosch’s automotive group. Bosch is the world’s largest auto parts supplier in terms of sales.

“The cell business goes to Samsung, while battery pack and management goes to Bosch. We are still in a kind of cooperation,” he added at a press conference here. 

Bohr also said Bosch realized Samsung had approached it from the start due to its brand value, but refused to dwell on it, saying Samsung SDI had given it a much needed legup for entering the car battery market.

Last year, Bosch sold its entire stake in a 50-50 joint venture called SB LiMotive, which it established together with Samsung SDI to develop batteries for electric vehicles back in 2009.

The German company now pursues its own battery research, while using cells from Samsung in a Bosch battery pack that will be supplied to the Fiat 500e electric car starting next year.

In a way, the two companies are still meshed in a relationship, as they are forced to combine their efforts for sales. The two also continue to share patents.

Amid the shift toward electric cars, which is reshuffling entire value chains in the car sector, the German giant aims to continue to prevail in the new automotive future.

“The cars on the world’s roads are still running on diesel and gasoline, and things will stay that way for the rest of the decade,” Bohr said. "However, slowly but surely, the number of alternatives is growing."

The company predicts 110 million newly registered vehicles around the world by 2020, with 12 million of them having an electric powertrain.

Bosch currently pours about 400 million euros ($534 million) every year for electromobility, although the segment remains mainly an investment for the future rather than for an immediate mass market.

Asked if he believes Bosch could continue its supremacy in the new era of electric driving, the automotive chief seemed to have no doubts, saying it has always been in a fierce competition with two to three strong rivals.

“For the electric vehicle, we need to be aware that very new competitors are coming from outside the automotive industry,” he said.

“It’s a race with those companies learning how to do business in this industry, which is very special and difficult,” he said.

He also said the company’s diesel business, in particular, would maintain its competitive edge, citing the willingness to choose diesel-powered hybrid cars among fuel-conscious customers who also want better power.

Seeking new partnerships is also crucial to continuing growth for Bosch, which pulled out of its joint venture with Korea’s Samsung SDI last year.

“Batteries are a key element of electric driving. We are considering setting up manufacturing systems with other companies though, at a pilot level,” he said.

Bosch, an avid German collector of partnerships, is expected to announce new business partnerships in the coming six months on powertrain electrification and related IT technologies. Bohr declined to further elaborate.

With some 300 journalists from 25 countries joining the biannual global press conference this week, Bosch is showcasing its latest innovations in powertrain electrification and automated driving -- the key areas for more efficient and safer driving.

(jylee@heraldcorp.com)