Bosch CEO warns coronavirus could hit global auto supply chains
The chief executive of Robert Bosch, the world’s biggest auto components supplier, warned that coronavirus could impact its global supply chain, which is heavily dependent on China.
“We are naturally concerned, but on the basis of the facts today, we have no disruption to our business or supply chain,” Chief Executive Volkmar Denner said at a meeting with journalists in Fellbach, Stuttgart.
Bosch is relying on China as a global manufacturing base for exporting electric motors, transmission and power electronics for electric cars.
“We need to wait to see how things develop. If this situation continues, supply chains will be disrupted. There are forecasts that predict the peak for infections will drag on until February or March,” Denner said.
“In Wuhan Bosch has two plants making steering systems and thermotechnologies, with around 800 employees. There have been no reports of infections,” Denner said.
Bosch’s China plants have been shut for Chinese new year and the holiday has been extended to February 3, an extension which will not disrupt Bosch’s global business, Denner explained.
Bosch has been in China since 1909 and has 23 automotive manufacturing facilities in more than 60 locations in the world’s largest auto market, which is home to the largest Bosch workforce outside of Germany.
Bosch employs 403,000 people globally.