Europe’s vehicle business way too reliant on other regions, claims Bosch chairman

A worker at the Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. Swen Pfoertner/Pool by way of REUTERS

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FRANKFURT, Dec 11 (Reuters) – Europe’s automotive sector has come to be too reliant on Asia and other regions for essential components this kind of as semiconductors and battery cells, Bosch’s (ROBG.UL) outgoing chairman informed a German newspaper.

Automotive Chips and battery cells have come to be the two most vital elements in the age of electrical and autonomous autos, forcing European carmakers to rely on Asian suppliers as local market has been slow to create ability shut by.

“Of course, we have come to be too dependent on other locations, and a change of class is needed,” Bosch’s Supervisory Board Chairman Franz Fehrenbach, who techniques down at the close of the yr, informed Frankfurter Allgemeine Zeitung.

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“Having said that, this is not the fault of politics, but is related to value optimisation in the supply chain,” he said. “The car sector is slowly but surely asking alone how raw content offer will look like, particularly for battery cells.”

German companies have outlined designs to claw back manage, including Volkswagen (VOWG_p.DE) which plans to create 6 massive battery cell factories with companions in Europe by 2030.

A international scarcity of automotive chips has highlighted the problem, causing the European Union to launch subsidy programmes to catch the attention of chipmakers to the continent.

Bosch, the world’s premier automotive supplier, opened a 1 billion euro ($1.1 billion) chip plant in Germany this 12 months, its most important-at any time investment decision, as it stakes a assert to equipping the most recent electrical and self-driving automobiles. read through extra

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Reporting by Christoph Steitz Enhancing by Edmund Blair

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