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Bosch Sees Growth in Commercial Vehicle Business

- Long-term growth strategy focused on safe, clean and economical technologies

- 2010 commercial vehicle technology sales expected to reach more than $8.9 billion

- Revenue of $9.7 billion expected for 2011

FARMINGTON HILLS, Mich. – Bosch is setting its sights on future growth for the commercial vehicle industry. With its real-world experience in the global commercial vehicle industry, Bosch has the technology know-how to meet the global commercial vehicle industry’s ever-changing needs – from common rail diesel systems and exhaust gas aftertreatment, to truck multimedia navigation systems and complete safety systems.

“There are a great many long-term growth opportunities, specifically with technical solutions that improve the efficiency of trucks, vans, buses and off-highway equipment,” explained Peter Marks, president, chairman, and CEO, Robert Bosch LLC, and member of the Board of Management. “We continue to offer and develop technologies that will accelerate our growth in this important market.”

The company’s 2010 commercial vehicle technology sales are expected to reach more than $8.9 billion and $9.7 billion are expected for 2011.

Bosch sees significant growth in commercial vehicle market
“For Bosch, the foundation for further growth lies in a broad range of innovative technologies for commercial vehicles and the ever-changing world in which they operate,” Marks said. “Much like our passenger car strategy, our long-term commercial vehicle focus is on safe, clean and economical technology.”

Bosch’s growth prospects for commercial vehicles are based on the state of the economy, supported by the company's “Invented for life” slogan and its innovation policy, with three major technology objectives: safe, clean and economical.

Safety technologies lead the way towards accident-free driving
Fatigue and falling asleep at the wheel are often causes of serious motor vehicle crashes. In fact, the National Highway Traffic Safety Administration (NHTSA) calculated in 2006 that driver fatigue was a major factor in 20 percent of all accidents. Driver drowsiness detection from Bosch can improve road safety, especially for commercial vehicles where drivers have rigorous on-road schedules. This new safety feature analyzes steering patterns, determines level of driver fatigue and alerts the driver if needed. Specifically, it is a software module that uses inputs from either the electric power steering or steering-angle sensor, making it a cost effective solution. Driver drowsiness detection will go into series production this year and can be used in passenger cars and light commercial vehicles.

Clean technology helps meet strict emission standards
According to the U.S. Environmental Protection Agency (EPA), the heavy-duty sector, from the largest pickups to 18-wheelers, emits about 20 percent of U.S. transportation greenhouse gas emissions, and the federal government is looking to significantly reduce that number. Bosch engineers have developed, and are continuing to improve, technology to help their customers stay ahead of increasingly strict emission standards around the world.

One technology assisting in meeting emissions standards is Bosch’s Start/Stop system. It is seeing a veritable boom in interest in the technology, which can reduce fuel consumption by up to 8 percent in urban driving. Even greater reductions are possible in urban delivery traffic, which is the area light-commercial vehicles are typically used. Bosch already has a total of six customer projects in the light-commercial vehicle area either for development or series production. In 2010, Bosch will deliver nearly 10,000 Start/Stop systems for light-commercial vehicles; and in 2012, the figure will exceed 100,000.

Improved efficiency reduces operating costs
According to a report from the National Research Council (NRC), using advanced diesel engines in tractor-trailers could lower fuel consumption by up to 20 percent by 2020 and improved aerodynamics could deliver an additional 11 percent reduction in fuel use, significantly reducing overall operating costs.

Bosch’s innovative technologies help save money – from diesel and hybrid technology to navigation – and the company is focused on improved efficiency for the end user.

Bosch’s navigation data can help the industry reduce costs. The only necessary equipment is a control unit with satellite positioning and a digital map. Based on information about inclines and curves, the control unit calculates an efficient driving strategy for engine management and transmission control. Bosch’s network of systems offers electronic opportunities that go beyond the range of radar and video sensors, making it possible to accelerate at precisely the right time before an incline and to avoid unnecessary shifting. With these systems, trucks will achieve fuel savings of up to 5 percent. According to Bosch calculations, that equates to an annual reduction in operating costs of nearly $5,300 per vehicle for logistics operators.

Another technology designed to lower fuel consumption is Bosch’s high-efficiency alternator for commercial vehicles, the HD series, which comes with efficiency up to 77 percent significantly higher than competitive products. The HD series utilizes sophisticated proprietary technology to achieve higher electrical performance and efficiency with a compact size. This technology can reduce annual operating costs per vehicle up to $200. In 2010, Bosch is providing nearly 1.7 million alternators to commercial vehicle manufacturers and expects its market share to continue to grow.

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 275,000 associates generated sales of $53 billion (38.2 billion euros) in fiscal 2009. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is repre¬sented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for growth. Each year, Bosch spends more than $5 billion (3.5 billion euros) for research and development, and applies for some 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.

In the U.S., Canada and Mexico, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, power tools, security and communication systems, packaging technology, thermotechnology, household appliances, solar energy and healthcare products. Having established a regional presence in 1906, Bosch employs over 20,000 associates in more than 70 locations, with reported sales of $7.3 billion in fiscal 2009.

For more information, visit www.boschusa.com.

Commercial Vehicle Growth - October 2010


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