Chairman of the Board of Management (CEO), Robert Bosch GmbH
Stefan Hartung Talks Tech, Chinese EV Production | Bloomberg Talks
Robert Bosch CEO Dr. Stefan Hartung talks global demand, Chinese EV production, and geopolitical news with Bloomberg's ...
About Stefan Hartung
Stefan Hartung, CEO of Robert Bosch, has addressed Germany's economic trajectory and the role of technology companies. Speaking at the MMK event in June 2025, Hartung said that 80% of Bosch's turnover is generated outside Germany and emphasized the need to "inspire many people in our country to study technical subjects," stating that without technical education "innovation and technological development will come to nothing." He described his role as requiring a focus on seeking opportunities and addressing competitiveness challenges directly. In a Bloomberg interview in October 2024, Hartung discussed a shift in Bosch's strategy toward the United States, citing investments in a semiconductor facility in California and the acquisition of JCI for the air conditioning business. Commenting on the Chinese market, he described a shift from a "pure production manufacturing based system" toward one driven by domestic innovation, with highly demanding, tech-driven consumers. On the subject of potential US tariffs, Hartung remarked that he was "not a big fan of tariffs" as they "hinder global collaboration."
Transcript (17 segments)
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Oliver Kook0:02
Bloomberg audio Studios podcasts radio news. Let's go to Berlin right now. Bloomberg's Oliver Kook standing by with an interview with a key player from the under-pressure auto industry. That's right Tom, and listen, it's not just the auto industry because this is a sort of story that sits at the very center of the biggest stories we've been talking about for the last few months, whether it's AI, semiconductors, the auto industry, tariffs, and of course the German economy. So I'm very pleased to speak to somebody who really sits at the heart of all of these stories brought together. It is the CEO and chairman of Bosch. Because Bosch, we should just say, in addition to being one of the biggest companies and employers in Germany, its technology is in half of all smartphones, almost in everybody's home, and in literally almost every single car on the planet. So Stefan Hartung, thank you so much for your time today. Um, we should start in the auto industry because we have more difficult news out of Volkswagen today, and probably your order book is one of the clearest indications of what is to come in terms of demand for the auto sector. What are you seeing there?
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Stefan Hartung0:59
Well, we are still growing in the auto industry also this year, but let's be very honest: the auto industry didn't grow as much as we anticipated. So the overall production of vehicles will be pretty much flat, it will be a very small growth. Just a few pockets of growth are left, like India for example, or the Chinese export. Yeah, there's still some growth in battery electric vehicles, but we see a big shift actually. Not only that there is no volume growth, but the shift is away actually from the big growth numbers of battery electric cars to plug-in hybrids. So that is challenging in this industry because if you change production programs in this industry, that's a big thing, it takes a very long time.
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Oliver Kook1:35
So do you see any reason to be sort of more optimistic about things turning around, or do you think we're in this for at least another two years or so?
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Stefan Hartung1:41
Well, long term we know things will change towards better electric vehicles and that's a good thing, but definitely the IC technology, so the engines, will be needed longer. That's what we always thought. So there is a technology-open approach now coming by the consumer because the consumer freely decides what he wants to buy. First you see with a flat production line that the consumer decides less, so it just waits and takes the car a bit longer, which is bad for the industry. On the other hand, the consumer is deciding to buy more plug-in hybrids, which is more to see neutral. But in the long run, I'm still optimistic full electrification will happen.
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Oliver Kook2:16
And I'd like to also get your broader picture in terms of global demand because you're in obviously homes, you're in consumer goods, you're in obviously cars, you're in smartphones. What is the sort of picture of global demand across all of your different businesses?
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Stefan Hartung2:28
Well, if you look at consumers which drive most of it, which is our home kitchen appliance business but also our power tools, consumers are hesitant in spending. You see that in China and Europe; you see it less in the US by the way. The US consumers are always much more resilient in these terms. But in these two sectors you see quite strong resilience, so people wait a moment to buy also for cars. So in all the durables, you see that hesitation which comes from unclear regulation or unclear view if this is a good case for the consumer. They calculate, they don't just do emotional things.
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Oliver Kook3:01
And one of the things they're obviously going to be paying attention to as well is the election in the United States. How prepared are you for potentially 10, 20% tariffs in the event of a Trump administration? Does that make you look at your manufacturing and production footprint?
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Stefan Hartung3:12
Well, definitely I'm not a big fan of tariffs, that's clear, because tariffs kind of hinder global collaboration and that's important for technology. But you know, the election also brings certain clarity. So over the next month, some clarity will come what the direction is, and then industry will adjust. Everybody will be able to adjust. That's a good thing by nature of the election. Um, how the policy actually will evolve, we have to see. But in general, the US is still the strongest figure, I would say, globally. So probably the recovery is coming there fastest, the growth is coming most eminent. So you have to be there, and that's why we shift in Bosch big time towards US investments. We did the investment for the semiconductor in California, we bought JCI for the air conditioning business. That's a strategy.
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Oliver Kook4:01
And the other question is of course the Chinese economy where we've seen a lot of distinct weakness. But I have a theory I'd like to test on you, which is that when demand comes back within the Chinese economy, is it really for the same items that we've been talking about historically? Because demand has been out for about four years. Is it for German companies? And is it for really the same components because China's really been trying to make its own component industry as well?
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Stefan Hartung4:21
Well, China is changing from a pure production manufacturing-based system and a market for importers towards a technology-based system which is driving its own innovation and bringing great products in China for the Chinese people. The consumer is extremely demanding, very high-tech driven, loves high-tech functions. So you see way more level 2+ driving, which is fully automated driving but you are still responsible. So it's a thing which is much cheaper but still very comfortable. And you see these things in China. So the most advanced functions are now asked by Chinese consumers and customers, and that's actually a change. So will China be the same when demand comes back? Definitely not.
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Oliver Kook4:58
And then the other question I have also for you is that you said this is going to be a very challenging year for you, the road ahead, and that obviously where demand is absent, then cost cuts need to happen. Are there going to be more cost cuts at Bosch? Where are you looking to cut cost? Are jobs on the table? Are you going to have to cut some jobs?
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Stefan Hartung5:11
Now, most important for us are not the cost management questions of our plan. The real core thing of the plan, which includes cost management, is the innovation plans because we go for new innovation to face with better value to the consumer in different areas. So we force to go more to the US, we force to go more into new product, new innovation, and be on the forefront on these new trends also in China, also in Europe, but also in the US. So let's not be totally pessimistic in terms of those new trends.
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Oliver Kook5:40
Where is Bosch right now spending the most in R&D? Where are you seeing that promise?
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Stefan Hartung5:44
Well, still a lot of money is spent for semiconductors because it's an investment-based approach. You need to build these factories first. There is one in the US and there are some in Germany we still build. And then there is obviously the electrification story because long-term, better electric, this will be the way to go. And automation of vehicles, including full automation, but majorly the trend is now not going for full automation which some players show, but the semi-automation, so we are still responsible, the car does most of the work. That seems to be the way where the next wave is really coming.
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Oliver Kook6:15
Is that a category where you think you could see an acquisition for example in Bosch? Because you said a number of times that you need to be prepared for inorganic growth. Where are you sort of looking at inorganic growth?
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Stefan Hartung6:26
Well, I think on the inorganic side we are not so much looking at the automotive because automotive we can do from our own, we invest heavily on our own capacities. But inorganic growth we did this now with the air conditioning because of the heat pump business which is also transforming the industry. And there in this non-automotive side always we are quite active. You saw that also with the building integration where we acted in Canada and the northern US with Paladin, and that's the right way to do it because this is the moves we need to do to shift more to North America, to shift more to these non-automotive businesses. The automotive we are strong enough to shape this ourselves.
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Oliver Kook6:59
All right, well listen, Stefan, thank you so much for your time today. I really appreciate really going around the world and around the different industries that Bosch is involved in, which is again in half of the world's smartphones and in literally every single car. So really a very thorough appraisal of demand on the global stage.