Manila / Febuary 2009 – Robert Bosch Inc., local subsidiary of Robert Bosch GmbH in Germany, reported double-digit growth from its sales operations, attributing its performance to measures the company has taken and the resilience of the Philippines’ economy.

Notwithstanding the global recession, Bosch’s Asian markets, including the Philippines, continued on the path of steady growth. This, in spite of its Car Multimedia Division’s divestment of the Blaupunkt brand from the Philippines.

“Despite the current shift in market conditions that businesses are beginning to experience, Bosch (Philippines) has managed to achieve its year-on-year targets,” said Franz Roland Odenthal, Managing Director of Robert Bosch Inc. “This owes greatly to the unwavering confidence of the local markets.”

Robert Bosch Inc. strengthened its B2B strategy and continued to increase its numeric distribution in 2008. The introduction of new innovations also provided more consumer benefits for end users and business and livelihood opportunities on the B2B level.

Both the company’s business lines in the Philippines, from the mother company’s automotive technology sector and consumer goods and building technology sector, landed within the corridors of its projected growth for 2008. Both also retained market leadership in their respective segments, despite competition from leading Asian brands.

Quality is cheaper in the long run

Bosch Automotive Aftermarket, which is the largest local supplier of automotive technology parts, attributes its sales growth to changes in consumer behavior, most noticeably during the spike in oil prices in 2008. Motorists shifted to quality auto parts to prolong the interval of vehicle service maintenance while independent workshops shifted focus to selling high-performance parts that would not create back jobs and complaints from motorists.

The increase in Bosch’s automotive product portfolio last year also increased its coverage over the local car market, therefore enabling workshops to serve more vehicle makes and models. The company’s automotive line comprises 10 core product fields, including spark plugs, filters, lighting and braking systems, car electronics, fuel systems and automotive diagnostics.

Likewise, the company’s Power Tools business stayed on course due to continued growth in the local construction industry. Bosch Rotary Hammers, Demolition Hammers and Measuring Tools were the company’s growth areas in the said industry while power tool accessories and after-sales service also contributed to its current standing.

Bosch Power Tools currently leads in the country’s largest tool segment and is present in every major construction site in the Philippines. It is also present in the local ship building and home repair industries as well as mining and exploration.

A steady foothold

The Bosch Board of Management and stakeholders are committed to continuously invest in future-oriented technologies. In line with this, the company continues to invest in developing products that preserve and improve living conditions. To date, Bosch has forayed into solar photovoltaics, fuel technologies and other clean sources of energy.

“Our present position will allow us to achieve a successful development for our company over the long term, even under tougher conditions,” said Franz Fehrenbach, Chairman of the Bosch Board of Management. The global organization has invested significantly in resource conservation and environmental protection to benefit future generations in the long-term.

Given the uncertainty in the global market, the Philippines must do its best to mitigate its effects on the local market. “Be more vigilant, so as not to suffer from the same pitfalls,” said Odenthal.

“In the same way that Bosch innovates through its technology, so too should we be innovative in the way we do business. –all within the boundaries of reasonable standards,” he said.

Strong domestic markets

The company remains confident in the domestic markets and the progress of local industries that directly relate to its business lines. In 2008, the local car industry posted a 5.5% growth, translating into more than 124,000 units sold, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI). Likewise, the local mining sector is expecting investments of up to $1.0 billion in 2009, according to the Mining and Geosciences Bureau (MGB).