Bosch Set for Growth in Steering Business

FARMINGTON HILLS, MI – Having bought out its 50/50 partner ZF in a joint venture dedicated to automotive steering systems, Bosch now has an important strategic piece allowing a holistic approach to automotive-vehicle technology.

With its established expertise in electronics, chassis control and electrical drives, the addition of a wholly owned steering division is an excellent fit, says Mike Mansuetti, president of Bosch in North America.

As part of its long-term $455 million investment in North American operations, Bosch has expanded its Plymouth, MI, technical center, which now is a new home for 200 employees (mostly engineers) who moved in from ZF facilities in nearby Northville.

To avoid antitrust concerns, ZF sold Bosch its stake in the steering joint venture after ZF last year acquired TRW, one of the world’s largest producers of automotive steering systems.

Bosch electric power steering system.

The global headquarters for the steering business is in Schwäbisch Gmünd, east of Stuttgart, but the regional integration in Plymouth sets the stage for cross-divisional collaboration, Mansuetti says.

“Now in Plymouth we have all the divisions that are working, for example, on automated driving all in one facility,” he tells journalists during a media roundtable here. “That means chassis folks, steering folks, the electronics group and electrical-drives group are all in one building. Steering is essential on the road to automated driving. Now we have all the competencies in house.”

With the steering business comes manufacturing plants in Florence, KY, employing more than 1,000 people, and Aguascalientes and Querétaro, Mexico.

Bosch is expanding the Querétaro plant to meet demand for steering systems from a growing number of auto plants in the region, while the Aguascalientes facility is being tooled to manufacture next-generation ABS, Mansuetti says.

In 2013, the steering joint venture, with 20 locations in the world’s established automotive markets, reported global sales of $4.6 billion (€4.1 billion) and had 13,000 employees. Bosch is not disclosing revenue associated with the steering business in 2014 or 2015.

With complete control of the steering business, Bosch can concentrate on expanding its customer base, particularly in the area of commercial vehicles, where automated steering functions are under development.

“Really all the (steering) customers in North America were focused on passenger cars and light trucks,” Mansuetti says. “We did little on the commercial vehicle. But I’d say we have a solution for all (customers).”

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