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Bosch Reports Double Digit Automotive Sales Growth in 1997

24 February 1998

Bosch Reports Double Digit Automotive Sales Growth in 1997

    DETROIT, Feb. 24 -- Robert Bosch Corp. saw 1997 North
American OEM sales rise by more than 10 percent compared with 1996 figures,
from $2.9 billion to $3.3 billion.  Overall, Bosch North American net sales,
including automotive and non-automotive operations, rose from $4.8 billion in
1996 to $5.3 billion last year.
    Robert Bosch Corp.'s automotive OEM operations consist of two companies:
the Automotive Group, based in Farmington Hills, Mich., and Bosch Braking
Systems, currently headquartered in South Bend, Ind., but slated to move to
Farmington Hills in 2000.  The combined groups give the company 18 automotive
facilities and 13,900 automotive associates in North America.

    Bosch Group Continues Worldwide Growth
    The Bosch Group's business performance in 1997 was influenced by new
acquisitions with overall sales increasing by 14 percent to $27 billion.  Four
percent of this can be attributed to consolidation of new acquisitions and an
additional four percent was due to fluctuations in the exchange rate.
Worldwide, sales of the automotive equipment rose 17 percent to $16.5 billion.
    The number of Bosch employees rose by approximately 4,000 worldwide, from
176,500 in 1996 to 180,500 at the end of 1997.
    The Bosch Group invested almost $1.55 billion in fixed assets in 1997, 53
percent of which were invested in Germany.  Investments for the current year
are projected to reach more than $1.72 billion.  This amount reflects the
highest level of annual investment in the history of the Bosch Group.
    The major area of investment lies in the production of diesel fuel-
injection systems.  In this area, new high-pressure injection systems for
direct injection diesel engines in passenger vehicles will almost completely
replace conventional injection systems in the future.  Bosch began producing
VP 44 in 1996; production of the common rail and unit injector systems began
last year.
    In addition, the vehicle dynamics control ESP (Electronic Stability
Program) is now standard on all Daimler-Benz A-Class vehicles.  As a result,
demand for the ESP has increased considerably among other automotive
manufacturers as well.  This is marked by expanded application in mid-size and
compact cars.
    Bosch was the first manufacturer of ESP, introducing it to the market in
1995.  Bosch is presently the only system supplier of ESP worldwide.  A
further development of the antilock braking system and the traction control
system, ESP prevents swerving of the vehicle and increases driving safety in
curves on wet or slippery streets.  Approximately 50,000 automobiles were
equipped with Bosch's ESP system in 1997.
    Bosch designs and produces precision automotive components and systems
sold to vehicle and powertrain manufacturers in the U.S. and abroad.  These
include systems and components for gasoline and diesel injection, airbag
components, ABS and conventional brake systems, lighting components, as well
as small motors, electrical equipment and electronics.
    Robert Bosch Corporation is the wholly owned U.S. subsidiary of Robert
Bosch GmbH, headquartered in Stuttgart, Germany.
    Editor's note:  Conversion rate:  DM 1.7348 = $1.00 U.S.

SOURCE  Robert Bosch Corp.