ane congress may 2005, barcelona c/cat | 3/21/2005 | © robert bosch gmbh reserves all rights even...

ANE Congress May 2005, Barcelona

C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties.


Will western Europe remain a center of

the automotive industry?

Franz Fehrenbach

2

Motor vehicle production (in m units)



Source: Bosch LongTermForecast 12.04 * w/o Japan/China

NAFTA16.4 17.6 18.4

05

10152025

2004 2008 2014

+1.2 % p.a.

Europe West17.0 17.6 18.1

05

10152025

2004 2008 2014

+0.6 % p.a.

Europe East

3.9 5.2 5.6

05

10152025

2004 2008 2014

+3.7 % p.a.Japan

10.6 10.0 9.7

05

10152025

2004 2008 2014

-0.9 % p.a.

World63.8

71.9 77.3

0

20

40

60

80

2004 2008 2014

+1.9 % p.a.

South America

2.3 2.6 2.9

05

10152025

2004 2008 2014

+2.2 % p.a.

Asia*

7.69.5 10.9

0

5

10

15

20

25

2004 2008 2014

+3.7 % p.a.China

5.28.4

10.7

0

5

10

15

20

25

2004 2008 2014

+7.4% p.a.

3

Value added growth by region



206316

226

270116

126

13

45

0

100

200

300

400

500

600

700

800

900

1000

2002 2015

€ b

n

ROW

India

South America

South Korea

China

Japan

Nafta

Europe

Source: Mercer, Fast 2015

4

Western Europe‘s advantages



Good brand and quality reputation

Very good human resources potential

Modern and highly efficient facilities

5

Most productive vehicle plants in Europe



0

20

40

60

80

100

120

Nissan, UKSunderland

Toyota, UKDerby

Honda UK,Swindon

Ford GermanySaarlouis

Opel GermanyEisenbach

Performance index

Source: House of Commons – Trade and Industry – Written Evidence

6

Flexibility of labor regulation index



0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

Lab

or

reg

ula

tio

n in

dex

.

Source: Institute for Management Development, Switzerland

7

Average Corporate Tax Rates on Profit



0

5

10

15

20

25

30

35

40

45

Perc

en

tag

e o

f p

rofi

t b

efo

re t

axes

Source: Institute for Management Development, Switzerland

8

Labor costs Working hours



euros per hour hours per year

Source: OECD, IW-Köln

27.10

19.90

20.20

4.30

0.50

18.30

18.70

1.00

16.00

16.70

16.90

India

China

Czech Republic

Spain

Italy

Germany East

Japan

Great Britain

United States

France

Germany West

1,450

1,670

1,790

1,800

1,920

2,400

2,500

1,500

1,590

1,800

1,430Germany West

France

Germany East

Italy

Great Britain

United States

Japan

Spain

Czech Republic

India

China

9

Challenges to the automotive industry



to adapt to shorter product life cycles

to re-establish first-class quality

to master the trend to low-cost vehicles

to improve the general level of education

10

Pisa rating vs. labor costs



IrelandGermany (East)

Norway

Germany (West)Denmark

SwitzerlandBelgium

NetherlandsFinland

Japan

CanadaFrance

SwedenAustria

Luxemburg

USA

Spain

Italy

Greece

Portugal

HungaryPoland

Slowakia

Czech Republik

400

420

440

460

480

500

520

540

560

0 5 10 15 20 25 30Labor costs (€/h)

Pis

a r

ati

ng

Eastern Europe

Western Europe

Source: Pisa;OECD

strong

weak

11

Founders of the “Wissensfabrik”



• Dr. Jürgen Hambrecht, BASF AG, Ludwigshafen

• Franz Fehrenbach, Robert Bosch GmbH, Stuttgart

• Klaus Fischer, fischer, Waldachtal

• Dr. Rainer Follmann, Follmann Management Holding, Minden

• Prof. Josef Gerstner, KSB AG, Frankenthal

• Dr. Hermut Kormann, Voith AG, Heidenheim

• Prof. Berthold Leibinger, TRUMPF Gruppe, Ditzingen

• Prof. Ekkehard Schulz, ThyssenKrupp AG, Düsseldorf

• Hans Wall, Wall AG, Berlin

12

Focal points of activity:



1. Set up 1000 school partnerships to strengthen basic reading, writing and mathematical competencies of4- to 8-year-old children.

2. Change mindset: away from dejectedness to advocacyof change and entrepreneurship.

3. Establish a network for young entrepreneurs and newly founded companies with mentoring and consultancy by experienced specialists.

13

Types of OEM-supplier relationships



Cultural background: Asian keiretsu model vs.

European/American contract-based model

Full-service system supplier with development responsibility

vs. component suppllier without design responsibility

Cost- or price-driven contract vs. long-term partnership

14

Rating of OEM-supplier relation quality



0

100

200

300

400

500

600

700

800

Sco

re

Source: J.D. Power 2004

15

How is Bosch safeguarding its competitive position?



Cost leadership

Innovation leadership

BOSCH

16

Cost leadership



Consistent introduction and enforcement of lean manufacturing

and logistics -> Bosch Production System

Optimal mix between traditional sites in western Europe and

those in emerging markets

Design for regions

17


AE-DA/MKT | 2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties.

An additional safety margin : Predictive Safety System

18



Our Vision

Creating value – sharing values

ane congress may 2005, barcelona c/cat | 3/21/2005 | © robert bosch gmbh reserves all rights even...

Documents

rights of disposal

robert bosch gmbh

europeane congress

profitane congress

unitsane congress

regionane congress

bosch longtermforecast

management development