Bosch seeks to expand business with Korean automakers
By Lee Hyo-sik
Frank Schaefers, CEO of Robert Bosch Korea, speaks during a press conference at the Plaza Hotel in downtown Seoul, Tuesday. He said the German auto parts maker will expand its business ties with Korean automakers in the areas of fuel-efficient, low-emission engines and automotive mobility solutions. / Courtesy of Robert Bosch Korea
Bosch, one of the world’s largest auto parts makers, is seeking to expand its business with Hyundai, Kia and other local automakers in the areas of a fuel-efficient, low-emission power train systems and automotive mobility solutions, the head of its Korean operation said Tuesday.
At a press conference marking the company’s 30th anniversary in Korea, Frank Schaefers, CEO of Robert Bosch Korea, said he will make every effort to provide innovative products and services Korean carmakers look for from parts suppliers.
“Korea is an important market for Bosch,” Schaefers said. “We do our best to offer innovative products and services to Korean automakers in a sustainable manner. We expect our business opportunities will continue to grow in the country, particularly in the areas of automated driving, Internet connectivity and electrification.”
The company, headquartered in Yongin, Gyeonggi Province, operates three plants here and employs nearly 2,000 workers.
Bosch will enable Korean automotive customers to meet the carbon dioxide emission limit of 97 grams per kilometer by 2020, according to Schaefers, who came to Korea in January.
“By 2025, 15 percent of all new vehicles will feature an electrified power train. Our exhaust gas treatment systems for diesel cars improve fuel efficiency, reduce greenhouse gas emissions,” the 51-year-old CEO said. “We will reduce fuel consumption by 10 percent for diesel engines, and 20 percent for gasoline-powered ones.”
In addition to offering the eco-friendly power train system, the German auto parts maker has introduced a wide range of automotive mobility features such as automation, electrification and connectivity.
“Bosch renamed its automotive technology business sector to mobility solutions to underline our focus on newly emerging automotive functions,” he said. “This meets the growing demand for improved energy efficiency, expanded safety and increased comfort in Korea.”
Future vehicles will be automated, efficient and, moreover, connected, Schaefers said, stressing that the Internet will play a pivotal role in the development of various mobility solutions in Korea.
“Connected driving will result in a growing business with mobility services,” the CEO said. “Korea stands as one of the highly developed countries in Internet with huge business potential concerning connected driving services. Bosch can play an active part in realizing this potential with its technological expertise in both hardware and software.”
He said Bosch has introduced advanced automotive safety technology to realize automated and accident-free driving in Korea. “We are the global leader in the accident-and injury-free driving. Our adaptive cruise control adjusts the vehicle’s driving speed to the flow of traffic by automatically accelerating and braking.”
Schaefers then said Bosch Korea’s sales will increase by up to 4 percent this year from 2.1 trillion won ($1.9 billion) in 2014.
“We will continue to expand our investment in Korea. In the past five years, the company invested a total of 260 billion won and plans to spend 30 billion won in 2015,” the CEO said. “Our healthy performance in Korea has been based on our long-term strategy of continued investment and business diversification. We intend to grow our business along these lines in the future.”
As part of Bosch’s efforts to boost its local presence, the company has established a 50-50 joint venture with KyungChang Wiper to develop, manufacture and sell advanced wiper systems in Korea.