Bosch Sells Unit

Bosch sells motors and generators unit to China; announces earnings

Speculation and rumor. They even permeate the world of motors and generators…at least when it comes to multi-million dollar business deals. Just over a month ago, Motherson Sumi’s billionaire owner Vivek Chaand Sehgal hinted during an interview that he was considering a purchase of Bosch’s motors and generators division. In the 38 days since that “no comment” teaser, the post-sale destination of that division has changed trajectory from India to China.

Stuttgart, Germany-based Bosch, the world’s largest auto parts supplier, announced Tuesday it had sold its subsidiary making starter motors and generators to Chinese buyer Zhengzhou Coal Mining Machinery Group Co. (ZMJ) and Hong Kong-based China Renaissance Capital Investment. Terms of the deal included an agreement not to disclose its value, but some industry sources have estimated it at more than $550 million.

The purchase is still subject to approval by antitrust and other authorities, but ZMJ said it would keep the subsidiary’s staff of almost 7,000 at 16 locations in 14 countries.”ZMJ will support SG in further expanding its competitive product portfolio,” said the Chinese company’s CEO Chengyao Jiao in a statement. “Improved regional presence, especially in Asia, will allow SG’s business to be expanded sustainably and profitably.” ZMJ, also an automotive supplier, makes engine components as well as starters and generators.

Bosch’s total roster includes 390,000 employees worldwide, also providing tech services and manufacturing industrial products, appliances, and power tools. If there were any doubt as to the impetus for the sale, the company clarified Thursday it was not about overall earnings. Chief executive Volkmar Denner announced Bosch’s first quarter sales had risen 12 percent, so far surpassing its 2017 target of 3 to 5 percent growth, according to the Financial Times’ Patrick McGee. 2016’s sales were also reported: $73.1 billion, with $44.7 billion in revenue. The company, which is privately owned, added that it will be investing in advanced technologies such as the Internet of Things and artificial intelligence in the coming decade.

Advertisements

No comments yet... Be the first to leave a reply!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: