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Bosch and MAHLE plan joint venture to develop and manufacture exhaust gas turbochargers


· Joint venture planned to start at beginning of April 2008

· Company to be based in Stuttgart

Stuttgart – Robert Bosch GmbH and MAHLE GmbH have agreed to establish a fifty-fifty joint venture to develop, manufacture, and market exhaust gas turbochargers. It is planned to commence the joint venture in April 2008. The company, which will be called “Bosch Mahle Turbo Systems,” will be headquartered in Stuttgart. The joint venture partners plan to work together to develop and manufacture turbochargers for gasoline and diesel engines, and to market them worldwide. Series production is supposed to start in 2010. The foundation of the joint venture is still subject to approval by the antitrust authorities.

As part of the downsizing concept for the engines of the future, exhaust gas turbochargers are one of the key technologies for achieving a sustained cut in fuel consumption and CO2 emissions. The use of exhaust gas turbochargers is already common in modern diesel engines, and they are expected to become more prevalent in gasoline engines as well. This also calls for more widespread use of advanced injection technologies. This is an area in which Bosch already occupies a globally leading position, both with gasoline direct injection and with common-rail technology for diesel engines. MAHLE has many years of experience in the development and manufacture of high temperature-resistant turbocharger components. In addition, its subsidiary MAHLE Powertrain specializes in the development, design, and application of turbocharged engines. Both partners in the new joint venture can therefore draw on extensive engine-systems know-how, as well as competence in large-scale series production of ultra-precision components in and around the engine.

“This joint venture will now allow us to offer our customers from a single source a complete product portfolio for reducing fuel consumption and emissions,” said Dr.-Ing. Bernd Bohr, chairman of the Bosch Automotive Group. Prof. Dr. Heinz K. Junker, chairman of the Management Board and CEO of the MAHLE Group, added: “With their systems and components know-how, MAHLE and Bosch complement each other ideally as partners for the development of new exhaust gas turbochargers. Moreover, the two companies are names to be reckoned within the automotive powertrain field.”

The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 272,000 associates generated sales of 46.1 billion euros in fiscal 2007. The Bosch Group comprises Robert Bosch GmbH and its roughly 300 subsidiary and regional companies in over 50 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spends more than three billion euros each year for research and development, and in 2006 applied for over 3,000 patents worldwide. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.”

The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

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As the leading development partner of the automotive and engine industry worldwide, MAHLE offers its customers unique systems competence in the areas of internal combustion engines and engine peripherals. MAHLE is among the top 3 suppliers globally for piston systems, cylinder components, valve train systems, air management systems and liquid management systems. Our circle of customers includes all renowned combustion engine manufacturers.

MAHLE has a local presence in all important world markets. The Group has more than 40,000 dedicated employees in 110 production plants and seven research and development centers. Worldwide, nearly 2,300 development engineers and technicians work as partners for our customers on forward-thinking concepts, products and systems focused on the continuous development of the combustion engine. In 2007, the MAHLE Group expects sales of approximately EUR 5 billion (USD 7.5 billion), positioning the company among the top 30 automotive suppliers globally.


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