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The world's largest auto supplier warns profit margin may fall below 2%

The world's largest auto supplier warns profit margin may fall below 2%

格隆汇格隆汇2026/01/17 23:14
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By:格隆汇
Glonghui January 18|According to Yicai, Bosch, the world's largest auto parts supplier, will face significant financial pressure in 2025. Recently, Germany's "Manager Magazine" reported that Bosch CEO Stefan Hartung stated in an internal email to employees that Bosch Group's profit margin in 2025 will be significantly lower than 2%, far below the expected target. In 2024, Bosch's operating profit margin has already dropped from 4.8% in 2023 to 3.5%. In the email, Hartung pointed out that part of Bosch's profit decline in 2025 stems from high restructuring costs of up to 3.1 billion euros, which are provisions for plans such as layoffs, accounting for about 3.5% of sales. The report also states that Bosch's revenue in 2025 will be about 91 billion euros, slightly higher than the 90 billion euros in 2024. However, this growth is mainly due to the contribution of about 4 billion euros in revenue from the acquisition of Johnson Controls-Hitachi. Excluding the impact of this acquisition, on a comparable basis, Bosch's actual revenue last year actually declined. Bosch will release its 2025 financial report data on January 30. On January 8 this year, Hartung had already issued a warning about the 2025 financial report, predicting that Bosch's profit in 2025 would experience a sharp decline, and bluntly stated that 2026 would also be full of challenges, with the company unlikely to achieve its long-term operating profit margin target of 7% until at least 2027. He attributed the reasons to high tariffs and weak economic growth suppressing consumer spending.
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