Bosch Issues Warning on Coronavirus
Robert Bosch, probably the world’s largest supplier of car components, has issued a warning that the Nova Coronavirus may well disrupt their global supply chain. Bosch Chief Executive, Volkmar Denner, stated in a press meeting on Tuesday that whilst there was no disruption just yet, they do anticipate that this may change if the outbreak becomes worse.
Bosch has been active in China since 1909 and now has some 23 manufacturing facilities in what is the world’s largest car market and also the largest Bosch workforce outside of Germany. The company has two plants in Wuhan, making steering systems and thermotechnologies, and where they have about 800 employees. Thus far, there is no report of infection amongst the employees.
In Asia, Bosch had a turnover of 22.5 billion Euros last year and almost half of that came from China. Now they are predicting a 2.6% fall in global car demand due to lower demand in China, Europe and America or, in other words, just about everywhere. They are very dependent on China as their global manufacturing base for electric motors, transmissions and the powertrains for electric car manufacturing.
All businesses in China has been shut for a government-extended Chinese New Year holiday, which of course may well also impact production capabilities. However, for now, Denner has said that the company will wait to see how the situation develops over the next few days before they take any action.