Can Bosch Keep Supply Chains Secure After 'Painful' Year?

Bosch is working to ensure its supply chain remains economically robust following a 2025 financial year marked by increased tariffs and weak economic growth.

Preliminary sales reached US$107bn, but the company faced increased pressure from high material costs and structural shifts in the automotive industry.

The goal of current restructuring efforts is to ensure the company remains financially independent and secure.

Action taken already includes 13,000 job cuts, to narrow a US$2.9bn cost gap in the Mobility sector, primarily driven by the transition to electromobility and global competitive pressure.

Managing material costs and productivity gains

The company is systematically working on its material costs to restore competitiveness. This includes intensive use of AI to increase productivity across its manufacturing locations.

"We are working hard on our material costs, we are making even more intensive use of AI to increase our productivity, and we are weighing up every investment even more carefully than before," said Stefan Hartung, Chairman of the Board of Management and CEO of Robert Bosch GmbH.

Stefan said that these steps are essential to secure investment capacity.

Bosch’s 140-year engineering journey

• 1886: Robert Bosch opens the "Workshop for Precision Mechanics and Electrical Engineering" in Stuttgart

• 1902: The company patents the high-voltage magneto ignition system with a spark plug

• 1906: Bosch establishes its first sales office in the United States

• 1978: The firm launches the first electronic anti-lock braking system (ABS) for passenger cars

• 2021: Bosch opens its first fully automated semiconductor wafer fab in Dresden.

Expanding North American manufacturing footprint

Bosch continues to prioritise growth in the North American market, particularly the US, where it currently maintains 20 manufacturing locations. Since 2023, the firm has announced more than US$6bn in US-based acquisitions, adding over 5,000 jobs.

These locations span 14 states and produce products for the Mobility, Home Appliances and Power Tools divisions.

"Our dedicated associates across North America continue to focus on profitable growth and delivering quality products and services to our customers," said Paul Thomas, President of Bosch in North America and President of Bosch Mobility, Americas.

Demand-oriented capacities and strategy 2030

Under Strategy 2030, Bosch aims to be a top-three provider in all key global regions.

This requires a focus on demand-oriented capacities and competitive cost levels. The company is currently managing a headcount of approximately 412,400, a 1% decrease from 2024.

While the HVAC business added employees, the sale of Building Technologies and job cuts in Germany reduced the total. Stefan said that Bosch must benefit from its global presence and technological expertise to hold its own.

The company expects increasingly intense competition and does not anticipate significant improvement in individual markets until at least 2027.

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Navigating trade barriers and protectionist policies

Markus Forschner, Member of the Board of Management and Chief Financial Officer of Bosch, highlighted that the company has held its own despite considerable uncertainties and trade barriers.

For 2026, he expects that increased tariffs will have their full impact for the first time

"Competitive and price pressure are likely to increase further and the increased tariffs will have their full impact for the first time," said Markus. Bosch is calling for targeted local content rules in Europe to help level the playing field against distorted competition.