Bosch Group, the German auto component major, plans to seek a partner for a joint venture or a buyer for its Starter Motors and Generators division. The company said that it is convinced that this can further improve the division's growth prospects in a market characterized by tough competition and cost pressure.
"The Starter Motors and Generators division has successfully managed to transform itself over the past few years and is posting positive results. The division is well positioned internationally, and has technically and commercially competitive products that are very well received by our customers," says Dr. Rolf Bulander, the Bosch board of management member responsible for the Mobility Solutions business sector. "Nonetheless, in a market characterized by tough competition and cost pressure, the division has better growth prospects together with a partner or buyer."
The division develops and manufactures starters and alternators for passenger cars and commercial vehicles which help reduce fuel consumption, for example as part of the start-stop system. It employs around 6,500 associates at 13 manufacturing sites and multiple sales locations worldwide.
Securing long-term viability Bosch hopes that the partner or buyer will give an additional boost, and further expand the division's international presence. Furthermore, this may enable the division to tap into additional growth opportunities in those regions in which it does not yet have such a broad presence.
Apart from the growth prospects for the division, one of the main reason for Bosch to look for an alliance or a buyer is for the German company to devote more attention to other strategic areas.
