Launched 100 years ago with the magneto ignition device Bosch looking to continue growth in the U.S.

United States is today the largest market outside Germany

· 2006: Major boost to U.S. business thanks to two acquisitions

· Authorities approve takeover of Telex Communications Holdings

· 70 locations in the U.S., 17,000 associates, 5.7 billion euros ($7 billion) in sales

· Opportunities for growth with Diesel and ESP® in particular

Detroit – The Bosch Group celebrates its 100th anniversary in the U.S. on August 31, 2006. What began with a sales office for magneto ignition devices in New York City in September 1906 is today the Bosch Group’s largest market outside Germany. The Bosch Group’s other North America operations are also controlled from the U.S. Bosch sales in the U.S. have quadrupled in the past ten years. “The U.S. will also be a key market for us in the future, and one where we are looking to achieve significant continued growth,” said Franz Fehrenbach, Chairman of the Bosch Board of Management, at a gala event in Detroit. “By 2015 we wish to increase the America region’s share of total sales by another 6 percentage points to 25 percent,” said Fehrenbach. Sales in North America in the first half of 2006 alone rose 10 percent. More than 23,000 associates generated sales of 6.7 billion euros ($8.4 billion) at over 80 sites in 2005. The U.S. alone has 16,700 associates, 70 sites, and sales of 5.7 billion ($7 billion) euros.

Bosch has reinforced its market position in the U.S. since the start of 2006 with two acquisitions. Together with Mann + Hummel, it acquired automobile filter manufacturer Purolator, thereby expanding its American aftermarket business. Bosch is also buying all the shares in Telex Communications Holdings. The appropriate regulatory approvals were granted on August 31, 2006. This acquisition sees Bosch boosting its operations for security systems. Purolator and Telex employ a workforce totaling around 3,000 and generated sales of well over half a billion dollars in 2005. “For us and all our divisions, the U.S. is a key market, which we will also continue to strengthen with appropriate acquisitions,” said Fehrenbach.

Expansion of production and development capacity in the U.S.

Bosch is also expanding its production and development capacity in the U.S. In Plymouth Township, the second engineering center in the Detroit area is currently under construction. Driver assistance systems are just one of the products that will be developed here from 2007 onwards. Some 475 associates will be employed in the new 21,000 m2 (225,000 sq. ft.) premises. Investment in this individual project amounts to approximately 30 million euros ($37 million). “Overall, the Bosch Group is investing approximately 480 million euros ($600 million) in production and development facilities at the North American sites between 2004 and 2006,” said Peter J. Marks, member of the Bosch Board of Management, whose responsibilities include American operations. New production capacity for diesel and gasoline injection is currently being created in Charleston und Anderson (South Carolina).

Bosch sees potential for growth in the U.S., in particular for the Electronic Stability Program ESP® and state-of-the-art high-pressure diesel systems. Rising fuel prices are making economical diesel vehicles increasingly attractive. Tax incentives for low-consumption vehicles through the U.S. government’s “Energy Bill” are also benefiting diesel. “We therefore expect diesel’s market share for cars and light commercial vehicles to rise from the present 5 percent to 15 percent by 2015,” says Marks. The number of new automobiles in North America fitted with ESP® is already much higher. It is currently around 35 percent and is set to double by 2010.

Growth using innovative technology products – road show

In the Consumer Goods and Building Technology sector, the successful market launch of new products is largely responsible for a major rise in sales. Power tools with small, lightweight lithium-ion rechargeable batteries are in heavy demand among DIY enthusiasts. Bosch is also experiencing strong growth in security systems, especially for video surveillance and fire protection. The Industrial Technology sector is also making a major contribution to reviving one of the busiest inland waterways in North America, with Bosch Rexroth planning and supplying lock controls for the Welland canal. This enables the Niagara Falls to be bypassed safely and overcomes a 100-meter (330 ft.) height difference over a 44-kilometer (27 miles) stretch using eight locks.


The Bosch Group is a leading global manufacturer of automotive and industrial technology, consumer goods, and building technology. In fiscal 2005, some 251,000 associates generated sales of 41.5 billion euros. Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering,” the Bosch Group today comprises a manufacturing, sales, and after-sales service network of more than 280 subsidiaries and more than 12,000 Bosch service centers in over 140 countries.

The special ownership structure of the Bosch Group guarantees its financial independence and entrepreneurial freedom. It makes it possible for the company to undertake significant up-front investments in the safeguarding of its future, as well as to do justice to its social responsibility in a manner reflective of the spirit and will of its founder. A total of 92 % of the share capital of Robert Bosch GmbH is held by the charitable foundation Robert Bosch Stiftung. The entrepreneurial ownership functions are carried out by Robert Bosch Industrietreuhand KG.

Additional information can be accessed at www.bosch.com.

PI5538-kurz - September 01, 2006

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Martina Horton

International Press, Americas, Western Europe, Africa

Bosch Group

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