Automotive supplier Bosch wants to drive forward the development of new energies and the establishment of hydrogen production in Europe in light of climate change and the war in Ukraine. "Where dependence on fossil fuels is instrumentalized in international conflicts, we must do what we need to do to protect the climate," said Bosch CEO Stefan Hartung at the annual press conference in Renningen on Wednesday. Investments of a good three billion euros over three years are planned in climate-neutral technology such as electrification and hydrogen.

In the short term, the war in Ukraine will slow down the reduction of_{CO2 emissions}, but in the long term it will accelerate the technological transformation, especially in Europe. The Group announced that it was entering the components business for hydrogen electrolysis. Bosch plans to invest around 500 million euros in this area by the end of the decade. The components for the production of hydrogen are set to go into series production in 2025. A global volume of around 14 million euros is expected for this market in 2030.

"The successful 2021 financial year gives us confidence that we will also be able to overcome the challenging environment of the current year," said Hartung. However, Bosch will probably have to cut back on profitability in the current financial year due to rising costs. According to CFO Markus Forschner, Bosch will probably not quite reach the previous year's profitability target.

Costs will be passed on to OEMs

With regard to the high costs in production, it was said that Bosch intends to pass these on to customers - this applies to car manufacturers. "The burden on our earnings is growing considerably, particularly due to cost increases for energy, materials and logistics," said Forschner. Cost pressure is particularly high in the high-revenue supplier division. "It is not only the car manufacturers, but also the suppliers who are dependent on passing on price increases," said Forschner. Only then can Bosch continue to operate its supplier business profitably, said Markus Heyn, head of the division.

Sales rose by 5.2% in the first quarter compared to the same period last year. For the current year, the company expects to exceed the forecast sales increase of 6%, said Forschner. However, a more precise estimate remains difficult in view of the considerable uncertainties.

Another 10 billion euros for the digitalization of the business

At the end of 2021, Bosch had 402,614 associates, 7580 more than in the previous year. The company generated sales of 78.7 billion euros. According to the annual report, net profit amounted to around 2.5 billion euros in 2021, compared to around 750 million euros in the previous year, which was, however, heavily impacted by the coronavirus pandemic. According to Hartung, further investments of EUR 10 billion are planned for the digitalization of the business over the next three years.