|- CEO Peter Marks encourages constituents to accelerate use of efficient vehicle technology and alternative energy sources
- Threat of energy scarcity looms as oil demand to outpace extractability
- Clean diesel vehicles present solid business case for U.S. as widespread electrification will take several years
|DETROIT, Mich. – Industry, government, utilities, labor and academic leaders must mutually take action to improve vehicle efficiency and the use of alternative energy sources in order to confront an imminent period of energy scarcity, said Peter Marks, chairman, president and CEO, Robert Bosch LLC, while speaking June 15, 2009 at The National Summit convened by the Detroit Economic Club. |
“It will take us a long time to get to energy abundance. And the scarcity scenario will materialize first – and much faster than most would expect. The duration of these scenarios - however - is up to us,” said Marks. “We need to quickly and intensively improve existing combustion technology to conserve fossil fuels, and at the same time, ramp-up the use of alternative propulsion and renewable energy sources.”
Referring to studies that predict that the demand for oil will outpace extractability as early as 2016, Marks stated that both scarcity and abundance scenarios will occur. Their duration, he added, would be determined in our leverage of alternative energy technologies already known.
He contended “it would require just 0.01 percent of the sun’s energy output per year to cover the world’s yearly demand. With continued technology development in solar, wind and sea-energy generation and storage – the gap between supply and demand could quickly be closed.”
Marks believes a range of existing vehicle technologies, including clean diesel, will play a key role in response to new CAFE standards targeted to increase the fuel efficiency requirements for new U.S. light duty vehicles to 35.5 miles per gallon (mpg) by model year 2016. Diesel vehicles, commented Marks, provide a solid business case for the U.S., offering a double-digit gain in fuel economy, reduced greenhouse gas emissions and higher residual value. He remarked, “In my opinion, automaker roadmaps to achieve 35.5 mpg must include clean diesel.”
Marks referenced Bosch activities supporting his call to action. The company’s joint venture with Samsung SDI to develop and manufacture automotive lithium-ion batteries will support future electrification. Battery development and charging infrastructure, commented Marks, are critical steps that must first be addressed before electric vehicles become widespread. He forecast “by 2015, global automobile production is expected to near 90 million vehicles. Of that, we expect to see between three and five million hybrid vehicles and some 500,000 electric vehicles.”
The company’s holistic approach to energy utilization and generation has spurred considerable R&D investment in solutions not only for vehicle efficiency, but in all its business segments. In 2008, Bosch generated some $1.5 billion in sales of systems for utilizing renewable energies.
Marks concluded that success in achieving energy abundance and addressing the urgent need for climate protection relies on companies’ ability to technologically respond quickly to a new landscape and the concerted support by all constituents, including conscious consumers who must be motivated to invest in energy-efficiency.
For a copy of Peter Marks’ remarks, please go to: http://www.bosch-press.com/tbwebdb/bosch-usa/en-US/index.cfm
For more information on the National Summit, please visit www.nationalsummit.org. For more information on the Detroit Economic Club, please visit http://www.econclub.org/.
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 280,000 associates generated sales of 45.1 billion euros ($66.4 billion) in fiscal 2008. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. Including sales and service partners, Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3.5 billion euros ($5.7 billion) or eight percent of its sales revenue, for research and development and applies for over 3,000 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.
In North America, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, power tools, security and packaging technology, thermotechnology, household appliances, solar energy and healthcare. Bosch employs nearly 24,000 associates in more than 70 locations throughout the U.S., Canada and Mexico, with reported sales of $8.6 billion in fiscal 2008. For more information on the company, visit www.boschusa.com.
Note: Figures based on 2008 conversion rate of 1 Euro = $1.4710 U.S.; 2007 rate of 1 Euro = $1.3704 U.S.
Peter Marks Speaks at National Summit - June 2009