.jpg/dims/resize/740/optimize) |
| Frank Schaefers, CEO of Robert Bosch Korea, speaks during a press conference at the Federation of Korean Industries Building on Yeouido, Tuesday. He said the German auto parts maker will offer connectivity and automated driving technologies to Korean carmakers to bolster sales this year. / Courtesy of Robert Bosch Korea |
By Lee Hyo-sik
Bosch, one of the world's largest auto parts makers, has seen its sales growth in Korea slow down over the past two years, hit by the country's declining car production.
Intensifying competition with Denso, Hyundai Mobis and other rivals has also made it harder for the German industrial giant to increase its sales here.
Robert Bosch Korea said Tuesday it earned about 2.3 trillion won ($2 billion) in sales in 2016, up 1 percent from a year earlier. But the 2016 sales growth was lower than 2015's 6 percent increase when the revenue reached about 2.2 trillion won. In 2014, sales soared 21 percent to about 2.1 trillion won.
"Market conditions are quite volatile and we are facing issues in global markets," Frank Schaefers, CEO of the local branch, told reporters. "But we performed well in the first quarter of 2017 and I am optimistic for the rest of the year. We will be able to reach the sales growth target of 3 to 5 percent this year."
The firm's slower sales growth is in line with Korea's shrinking car production.
According to the Korea Automobile Manufacturers Association (KAMA), Korea's five carmakers produced 4.23 million cars in 2016, down 7.2 percent from 4.56 million the previous year, due to falling outbound shipments and frequent strikes by union members.
KAMA expects the nation's car production will continue to head south as Hyundai and Kia choose to build new plants outside Korea, which will adversely affect Bosch's auto parts business. Besides car parts, Bosch also makes industrial tools, energy and building management systems and consumer goods.
But Schaefers remains optimistic for Bosch's business in Korea, saying the company will continue to invest in Korea.
In 2016, the firm spent 23 billion won to expand its production and research capabilities, but it was less than 34 billion won in 2015.
"Korea is an important market for Bosch and we saw stable development also in the first quarter of 2017," the CEO said. "We are stepping ahead to shape the transformation of future mobility in Korea by strengthening our product portfolio in the domestic market. In addition, we are seizing new opportunities with the increasing demand for connectivity, driver assistance and automated driving systems."
Bosch will make every effort to provide innovative products and services Korean carmakers look for from parts suppliers, Schaefers said.
The company, headquartered in Yongin, Gyeonggi Province, operates three plants here and employs about 1,900 workers.
![[INTERVIEW] Ecolab helps Korean partners profit from ESG management](https://img.koreatimes.co.kr/upload/thumbnailV2/7a924189dbb7426ab12275ba98702309.jpg/dims/resize/178/optimize)
![[ANALYSIS] Has N. Korean leader's daughter been confirmed as heir apparent?](https://img.koreatimes.co.kr/upload/thumbnailV2/e65868a1b5834cc3aef853378637d1fd.jpg/dims/resize/178/optimize)
![[INTERVIEW] 'Lifeline for migrant workers in Korea' - Rev. Kim fights for foreign employees' rights](https://img.koreatimes.co.kr/upload/thumbnailV2/8fb4b5d381da49df90276394550f2889.jpg/dims/resize/178/optimize)
![[INTERVIEW] Korea to work with US, Japan to fight climate change](https://img.koreatimes.co.kr/upload/thumbnailV2/800d9054a14b4a0f9cc576366cc1b914.jpg/dims/resize/178/optimize)
![[INTERVIEW] Hip-hop group Uptown returns after 13 years with new lineup](https://img.koreatimes.co.kr/upload/thumbnailV2/0eae35da5e9c40c38cf439e550a2eb3e.jpg/dims/resize/178/optimize)
