Bosch Predicts 5% Drop in Global Auto Output

Robert Bosch GmbH expects the world’s output of passenger vehicles will shrink 5% this year, compared with the 3% drop it predicted earlier this year.

Global production also isn’t likely to revive until about 2022, Chief Financial Officer Stefan Asenkerschbaumer tells the Boersen-Zeitung.

As a result, he says, Bosch won’t achieve its target of a pretax margin of 6%-7% in 2019. On the other hand, Asenkerschbaumer says the company will likely collect €5 billion in revenue from electrification products, much of it from sales in China.

Bosch has supplied components used in more than 1 million electrified vehicles to date.