German car parts supplier and home appliance maker Robert Bosch GmbH yesterday called for action to boost competitiveness in Europe’s struggling top economy as it reported falling profits and sales for last year.
Operating profit fell by a third, from 4.8 billion euros (US$5 billion) to 3.2 billion euros, with the firm blaming a weak global economy and slow growth in its electric vehicles (EVs) business.
Sales dipped 1 percent to 90.5 billion euros, the company said.
Photo: AFP
It was the latest sign of problems for Germany’s traditional manufacturers, particularly the flagship auto sector, which is facing a slowdown in EV sales, high manufacturing costs and fierce competition in key market China.
Bosch chief executive officer Stefan Hartung added his voice to calls for changes to improve the business climate in Germany, criticizing high energy prices and burdensome bureaucracy.
“Anything that makes doing business easier is a step in the right direction,” he said. “Then Germany and Europe can be among the world’s economic and technological frontrunners in the future.”
The number of Bosch staff fell last year by 11,500, to around 418,000, and the company said it could not rule out “painful decisions” in the future.
Bosch is the world’s biggest auto supplier, making products ranging from braking and steering systems to sensors. It also has other units making goods such as household appliances, heat pumps and air conditioners.
Continental AG, another car parts maker, on Thursday said that it would close five sites in Germany, putting 580 jobs at risk. That came on top of the 7,150 job cuts the company announced last year. The bad news comes after business groups organized demonstrations in cities across Germany earlier this week to send an “economic distress signal” to the government and demand urgent reforms.
Federal statistics agency Destatis on Thursday reported that GDP shrank 0.2 percent last year, in line with its earlier estimate and marking the second straight year of contraction for the German economy. The government this week slashed its growth outlook for this year to just 0.3 percent, down from a previous forecast of 1.1 percent.
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