With virtually all European automakers expanding into Russia as the new vehicle market is growing to about 3 million units annually, mega suppler Robert Bosch is following them. Next year Bosch will start construction on a €40-million plant in Samara in the southern European part of Russia, which will supply the western automakers. Ford, GM, Renault and Volkswagen are all expanding in Russia as the Eurozone heads for its fifth straight year of sales declines. (read AutoInformed on EU Car Sales Continue to Evaporate in October – Off -5%)
The irony here is that Bosch opened it first sales office in Russia during 1904 under the Kaiser and the Czar. Certain political disputes resulted in devastating wars and revolutions during the next decade that changed the ruling orders in both Germany and Russia, among other places with future dire consequences. That is history. We are now talking about the wealth creation of that the automobile industry makes possible.
As it stands, Bosch plans to employ more than 500 workers in Samara by the end of 2017, the 100th anniversary of the Russian revolution. Bosch will locate three divisions at the new site: Chassis Systems Control, Starter Motors and Generators, and Diesel Systems. Manufacturing will concentrate on automotive technology such as antilock braking systems and alternators, mainly for local customers. These will later be joined by starters and common-rail injectors for commercial vehicles.
Bosch Thermotechnology division also recently announced plans new €21-million manufacturing plant at its existing location in Engels. The plant will make industrial boilers and wall-mounted conventional boilers. The Bosch Automotive Aftermarket, Gasoline Systems, Diesel Systems, and Power Tools divisions already have a presence in Engels.
In addition, a new €100 million company headquarters in Moscow is due to be completed in the second half of 2013.