Robert Bosch GmbH

Robert Bosch GmbH

Type	Private GmbH
Industry	Automotive, Automation, Major appliances, Packaging, Security
Founded	15 November 1886 (adopted current name in 1937) by Robert Bosch
Founder(s)	Robert Bosch
Headquarters	Gerlingen, Germany
Area served	Worldwide
Key people	Franz Fehrenbach(Chairman)
Products	Automotive parts, Power tools, Security systems
Revenue	€45.127 billion (2008)
Profit	€940 million (2008)
Employees	281,717 (2008)
Website	Bosch.com

Logo at Bosch Headquarters

Robert Bosch GmbH is a technology-based corporation which was founded by Robert Bosch in Stuttgart, Germany in 1886.^[1]

Robert Bosch GmbH is the world's largest supplier of automobile components, and has business relationships with virtually every automobile company in the world. The headquarters of Bosch is in Gerlingen, near Stuttgart. Franz Fehrenbach became chairman on 1 July 2003. The Bosch Group comprises more than 275 subsidiary companies.

Statistics

Operating in the areas of automotive and industrial technology, consumer goods, and building technology, the Bosch Group reported sales of €43.7 billion^[2] in fiscal 2006, an increase of 5.4% over the previous fiscal.

In 2005, worldwide sales of the Bosch Group came to €41.5 billion (reported as US$49,102,300,000),^[1] with about US$8 billion in US sales. In the auto-component supply market, the top competitors of Robert Bosch GmbH are: Delphi Corporation, Visteon, DENSO Corporation, and, Continental AG.

In 2004, Robert Bosch GmbH was 17th on the list of Top 20 Patent Winners in the United States, with 907 new patents. This was an improvement from 20th (758 patents) in 2003, and 23rd (683 patents) in 2002.^[3]

Ownership

Robert Bosch GmbH, including its wholly owned subsidiaries such as Robert Bosch LLC in North America, is unusual in that it is an extremely large, privately owned corporation that is almost entirely (92%) owned by a charitable foundation. Thus, while most of the profits are ploughed back into the corporation to build for the future and sustain growth, nearly all of the profits distributed to shareholders are devoted to humanitarian causes.

Diagram of Robert Bosch GmbH (Beteiligung relates to shares, Stimmen to voice/votes).

As shown in the diagram (above), the Robert Bosch Stiftung (Robert Bosch Foundation) holds 92% of the shares (Beteiligung) of Robert Bosch GmbH, but no voting rights (Stimmrecht). The Robert Bosch Industrietreuhand KG (Robert Bosch Industrial Trust KG), with old members of the company management, agents of the Bosch family, and other eminent people from the industry (such as Jürgen Hambrecht, CEO of BASF), have 93% of the votes (Stimmen), but no shares (0.01%). The remaining 8% of shares and 7%^[1] of voting-rights are held by the descendants of the company founder Robert Bosch (Familie Bosch).^[4]

For example, in 2004, the net profit was US$2.1 billion, but only US$78 million was distributed as dividends to shareholders. Of that figure, US$72 million was distributed to the charitable foundation, and the other US$6 million to Bosch family stockholders. The remaining 96% of the profits were pumped back into the company. In its core automotive technology business, Bosch invests 9% of its revenue on research and development, nearly double the industry average of 4.7%.^[5]

Arrangement of the company

Notable subsidiaries

The Bosch Group comprises more than 275 subsidiary companies. In addition to auto-component supply business, which brings in around 60% of its revenues, the company produces industrial machinery and hand tools. It also owns 50% of Bosch-Siemens Hausgeräte, the European appliance maker.^[1] Bosch's Blaupunkt unit was a major manufacturer of vehicle audio equipment until March, 1st, 2009.^[1] The subsidiary Bosch Rexroth produces hydraulic, electric, and pneumatic machinery for applications ranging from automotive to mining.^[1] Bosch has also purchased Telex Communications, and has purchased 50% of Purolator Filters as a joint venture with Mann+Hummel.

Worldwide presence

Although most of the company's plants and employees are located in Germany (112,300 employees), Bosch is a truly worldwide company.^[1] In North America, Robert Bosch LLC (a wholly owned Bosch subsidiary) has corporate headquarters in Farmington Hills, MI; with factories and distribution facilities in Mt. Prospect, IL; Hoffman Estates, IL; Broadview, IL; Kentwood, MI; Waltham, MA; Clarksville, TN; Anderson, SC;Charleston, SC; South Bend, IN; and 11 other cities. The Research Technology Center is located in Palo Alto, CA near Stanford University. There are also two corporate sites in Brazil and ten in Mexico where a central purchasing office for all divisions of Bosch Group is located. In North America, Bosch employs about 24,750 people in 80 locations, generating $8.8 billion in sales in 2006.^[6]

There are other wholly owned Bosch subsidiaries in:

and other countries. Bosch employs over 281,717 people in more than 50 countries, supplying a complex distribution network of new products and parts.^[7]

Logo

The Bosch logo represents a simple magneto armature and casing, one of the first components produced by the business.

Core businesses

Automotive technology

About 60% of Bosch's worldwide annual sales are produced in automotive technology. Bosch invented the first practical magneto, an early ignition electrical source, which provided the spark to ignite the fuel in most of the earliest internal combustion engines. Bosch's corporate logo to this date depicts the armature from a magneto. Bosch also invented the Anti-lock Braking System (ABS), and as time passed, Bosch became a leader in such specialized fields as traction control systems (TCS), the Electronic Stability Program (ESP®), body electronics (such as central locking, doors, windows and seats), and oxygen sensors, injectors and fuel pumps. Even in such humble technological areas as spark plugs, wiper blades, engine cooling fans and other aftermarket parts, Bosch has over $1 billion in annual sales.

Bosch is a leading player in car stereo systems and in-car navigation systems.

Robert Bosch GmbH is supplying hybrid diesel-electric technology to automakers, including PSA Peugeot 308.^[8]

In June 2008 Bosch formed SB LiMotive, a 50:50 joint company with Samsung SDI. The company held ground breaking ceremony for a 28.000 m² lithium-ion battery cell manufacturing plant in September 2009 and it is scheduled to start production for hybrid vehicles in 2011 and for electric vehicles in 2012 The plant will generate a 1.000 jobs in Ulsan, Korea in addition to the 500 employees in Korea, Germany and the USA.

Industrial technology

Bosch's subsidiary Bosch Rexroth is a supplier of industrial technology. Through this division, Bosch supplies technologies for driving, controlling, and moving machines. These technologies serve Bosch's two core markets–factory automation and mobile hydraulics.

Bosch's packaging technology division plans, designs, manufactures and installs packaging lines for manufacturers of pharmaceutical, confectionery, food, and similar products. Bosch is one of the largest supplier of packaging technology.

Consumer goods and power tools

Bosch belt sander 1274 DVS

Bosch caters to the areas of consumer goods and building technology with its power tool, thermotechnology, and security systems, as well as with its household appliances business within the BSH Bosch and Siemens Hausgeräte GmbH joint venture. In the US, power tools are provided by the Robert Bosch Tool Corporation based in Mt. Prospect, Illinois.^[9][10]

With its brands Bosch, Hawera, Skil, Dremel and RotoZip, and many more, Bosch is the largest manufacturer of portable powertools worldwide. Bosch manufactures power tools for the building trade, industry, and do-it-yourself-ers (DIY-ers). The product range also includes accessories such as drill bits and saw blades, under its Vermont American brand, as well as gardening appliances under its Gilmour brand.

Bosch is the largest European manufacturer of thermotechnology (heating units, etc.) with its subsidiary BBT Thermotechnik GmbH. It had revenues of €2.8 billion in 2006. Its brands include Bosch, Buderus, Junkers, Dakon, e.l.m leblanc S.A., FHP Manufacturing, Geminox, IVT, Nefit, Sieger, Vulcano and Worcester.

BSH Bosch and Siemens Hausgeräte GmbH, in which Bosch and Siemens AG each hold a 50% share, is one of the world's top three companies in the household appliances industry. In Germany and Western Europe, BSH is the market leader. Its portfolio includes the principal brand names Bosch and Siemens, Gaggenau, Neff, Thermador, Constructa, Viva, and ufesa brands, and further six regional brands. Bosch household appliances for the North American market are mainly manufactured at its factory near New Bern, NC. Its competitors include Viking Range, Fulgor, Sub-Zero Refrigerator, Wolf Appliance (a division of Sub-Zero Refrigerator), Fagor, Dacor, and Miele. The distribution of manufacturing workforce in household appliances is:

• 36% in Germany
• 30% in Western Europe (excluding Germany, but including Turkey)
• 15% in Asia
• 10% in Eastern Europe
• 5% in North America
• 4% in Latin America

with 39,000 employees overall.

Security systems

In 2001, Bosch bought Detection Systems and Radionics, Inc., gaining a foothold in the North American security and life safety products manufacturing/supply business. Combining the product portfolio of the nascent business in Europe, which includes installation, supply, and call centre business, with the dealer network and product portfolio, allowed Bosch to enter the American market as a major supplier. Through the Detection Systems acquisition, Bosch also obtained additional sales channels in Latin America, Asia-Pacific (including Australia), and Europe.

In 2002, Bosch acquired Philips Communications and Security, Inc., adding a comprehensive video surveillance portfolio, as well as sales channels, to its business.

In 2008, Bosch acquired Extreme CCTV, a rugged camera and IP camera manufacturer, further enhancing their video surveillance portfolio.

Today, Bosch Security Systems, Inc. works closely with an extensive network of certified dealers and integrators to design dependable security and life safety solutions for the market. Like others in this consolidated market, they maintain a broad portfolio of products and systems for video surveillance, access control, and intrusion and fire detection. They count major schools and universities, government agencies, correctional facilities, retail stores, casinos as many of their markets.

History

American Bosch Magneto Corporation

Corporate social responsibility and accreditation

The corporate major products are ISO 9001 and 14001 accredited.^[14][15] In addition to that, their management is complied with OHSAS 18001.

See also

• Knorr-Bremse
• Bosch home appliances

References

External links

• Robert Bosch GmbH official website
• Profile at Yahoo! Finance: Bosch-YF-profile
• Bosch Security Systems official website
• Bosch Power Tools North America official website
• Bosch Employees Forum for Social Development of Mankind
• Bosch Antilock Braking System website
• Bosch ESP® website
• Bosch ACC (Adaptive Cruise Control) website
• (English) BOSCH Cross Reference Tables English