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Bosch's new R&D center and production base in Wuxi were officially completed. This is already the third R&D center in China that is ranked as the world's first auto parts manufacturer. "At present, we have a total sales of 1.2 billion euros in China, of which the automotive sector has reached 650 million euros. We believe that our sales in China will at least double by 2007." Franz Ferenbacher, Chairman of the Bosch Group Fehrenbach stated at the press conference that Bosch's development in China is accelerating.
At sunset, Wuxi's production base mainly produces diesel engines. It is reported that the equipment and personnel of the Bosch research and development center in China, the Suzhou R&D center, will all be transferred to Wuxi. In Wuxi's production base, we can personally experience various technical experiments of diesel engines, including the limit laboratory of minus 10 degrees.
Diesel common rail high pressure injection technology is one of Bosch's best automotive technology areas. "We are the first in the diesel common rail high-pressure injection technology field and we have now developed the second generation (technology)." Fehrenbach said with certainty.
Bosch clearly has high hopes for the application of diesel systems in China. "Currently, in Western Europe, one in every two new cars uses diesel. In China, this proportion is still quite low. In the next 10 years, this ratio will probably rise to around 15%." Phaeon Bach said electronic control The diesel injection system will gradually become the dominant product in the Chinese market.
Maybe Bosch's technology is indeed trustworthy, but it is undeniable that some local governments still have considerable restrictions on diesel cars. Beijing does not even allow diesel cars to be licensed. Therefore, the media attending the meeting are more concerned about how Bosch changed its views on diesel engines. "Although fuel cell vehicles are highly sought after by the market, they are unlikely to be popularized in the short term. The most mature and realistic solution at present is the diesel sedan. The Chinese government is also investigating to see which solution is better, and we put our own. The survey figures and statistical results are provided to the government, and the next step depends on the government's development.†According to the information disclosed by Philip Brunbach, Bosch may always carry out government public relations and hope to change restrictions on diesel vehicles.
As the world's largest auto parts manufacturer, Bosch is undoubtedly a strong opponent of China's domestic parts and components companies, but at the same time, it cannot be denied that Bosch's expansion in China's purchase volume will bring development opportunities to many domestic parts and components manufacturers. "Taking into account the lower production costs in China, and also in order to comply with China's import policy on the automotive industry, we will strengthen our localization efforts and increase our purchases in China. We also hope to incorporate Chinese sources into global procurement. In the network, "Feirunbach explained the reasons for expanding the amount of purchases in China.
"Our total purchase in China this year will reach about 670 million euros, and we expect it to double by 2007." This part of the procurement may cover gasoline and diesel injection system products and components, igniters, starter motors, and alternators. And ABS anti-lock braking system and ESP electronic stability program will bring business opportunities to local manufacturers in related fields.
Although the current pace of development of the Chinese auto market has slowed down from two to three years ago, it is still one of the fastest growing markets in the world. "We expect that China will maintain its growth momentum in the ranks of major automobile manufacturers - it may surpass Japan and Germany in the next six years and become the world second only to the United States."
The temptation of this big cake for Bosch can be imagined. "We believe that China is the core of the entire Asia Pacific region. From 2005 to 2007, Bosch's total investment in China will reach 650 million euros. As of 2004, Bosch invested approximately 550 million euros in building and expanding in China. In each business, Bosch's total number of factories in China has doubled in the past five years, from 10 to 20.
Feirunbach said that this speed of development may accelerate in the next two years. "This year, the total sales of our companies in China are expected to exceed 1.2 billion euros, an increase of 20% over last year. Bosch's sales in China will be at least doubled in 2007 and will rise to 2.5 billion euros."
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