Automotive parts giant Bosch will shift production capacity to regions including China.
As competition in the automotive industry continues to intensify, competition with Chinese suppliers has markedly increased, forcing Bosch to carry out in-depth adjustments at both the cost and structural levels.
Bosch has explicitly stated that long-term cost pressures and price competition are the core reasons. Connection technology falls under the category of mature traditional auto components, which have limited profit margins and extremely high price sensitivity in the global market. Against the backdrop of automakers continuously squeezing procurement costs, Europe's high-cost production model is no longer sustainable.
The original production capacity in Waiblingen will be phased out and transferred to Bosch's manufacturing bases in China and Thailand. Which means most of Bosch parts will be imported from china.
They explained that this move aims to ensure stable global supply while addressing intensifying price pressures through a more cost-competitive production layout. The Chinese and Thai factories have distinct advantages in labor costs, large-scale production capabilities, and complete supporting supply chains. Bosch emphasized that the production transfer will ensure the continuity of customer orders without causing supply disruptions, with relevant quality standards and technical capabilities being migrated simultaneously.
The media analysis points out that this capacity transfer is a typical example of global manufacturing resource reallocation.
Bosch has announced to elimiate many jobs 2 years ago, mainly concentrated in Germany and other European regions, covering departments related to autonomous driving, electronic control units (ECUs), powertrains, and associated engineering R&D sectors .
In recent years, this multinational giant has launched multiple rounds of layoffs and cost-cutting measures worldwide, with a particular focus on its largest automotive business segment.
