In his first interview at the top of Bosch, Christian Fischer explains how he wants to make the company more independent of cars - and why the company is now building apartments.
The new Bosch boss Christian Fischer: The caricature of company founder Robert Bosch has his eyes firmly on him. Photo: Bosch
Stuttgart. The new boss of Bosch, Christian Fischer, does not give his first interview in the Gerlingen company headquarters, but in the rooms next to the company founder's villa with a wonderful view over Stuttgart. Fischer wants to realign the 140-year-old company with comparable foresight.
“Bosch needs an improved operating system,” says Fischer and in the interview gives the first concrete insights into how the company should become faster and more decisive. The Swabians must develop urgently needed new growth areas beyond cars and household appliances.
In the midst of a huge downsizing in Germany, Fischer also wants to send positive signals for the location and specifically invest 100 million euros in German start-ups. Fischer is also good for surprises: he wants to have apartments built.
Read the complete interview with Christian Fischer here:
Mr. Fischer, the economy constantly places demands on politics. Let's start the other way around. Germany is facing major changes. What can Bosch contribute?
One thing in advance: I think we should have a little more respect for the work of the federal government. We have a massive reform backlog, a difficult economic environment, high interest rates and major geopolitical challenges. The Federal Republic is a tanker. It takes enormous effort to turn it. The good thing is: the course is changing slowly.
Where do you see initial progress?
The business as usual has stopped. The government is tackling once-in-a-century reforms: pensions, health care, care. It is therefore acting more responsibly, also with a view to future generations, than many governments before it.
Germany summit
What Germany needs for a new economic miracle – and what business leaders are demanding for it
And what is Bosch's contribution?
As a company, we have to do our own part. We bear responsibility for Germany and our home region.
Does that mean specifically?
Two examples, the first: Bosch is launching a new venture capital fund with 100 million euros - with a clear focus on Germany. This is in addition to the billion that we have already made available to start-ups worldwide through our previous funds. With the fund we want to tap potential in growth areas and at the same time express our trust in the innovative power of German start-ups.
Why only now?
The start-up scene in Germany has matured significantly over the years. The location today has a successful start-up landscape with an attractive range of technologies. There are also strong connections between industry and science, especially in Baden-Württemberg. Bosch has been investing in start-ups worldwide for almost 20 years - including in Germany. Now we want to get even more involved in this country. With our new “Spark” fund, we are also setting an example for Germany as an “innovation ecosystem”.
They cut the research budget by 200 million euros in the first half of the year. How does that fit together? Is Bosch not coming up with enough ideas himself?
We develop ourselves, and if an innovative company fits into the portfolio, a purchase is certainly an option.
In which areas do you want to invest in start-ups?
We definitely won't finance a pizza service [laughs]. We primarily look at start-ups in the area of deep tech or with innovations that can fundamentally change entire industries. By the middle of next year, we want to define eight future areas for Bosch in which we want to grow, both with our own innovations and through targeted acquisitions.
If you already know the exact number, then you probably also know the business areas.
No. We approach the process in a structured manner. We are currently analyzing 120 search fields, including robotics, medical technology and quantum technology. Basically, we are always concerned with the question: What will Bosch look like in 2036, when the company turns 150 years old?
Semiconductor production at Bosch: The company should become faster and more decisive. Photo: Sven Döring for Bosch
Will Bosch then be the world's largest supplier of humanoid robots?
Who knows? One thing is clear: the global robotics market is growing rapidly and has great potential for the industry. We are well positioned to be part of this. But today I don't have a clear target image yet.
But surely you have a plan?
Before we set off into new growth areas, we first have to do our homework. Firstly, where necessary, we must continue to adapt capacities to the falling demand. This is especially true in the automotive business in Europe. There will also be a continuous need for adjustments in other business areas. Secondly, we need to realize the full potential of our existing businesses. We currently remain below our potential in many areas, and that needs to be changed. Being a leader in patents is good - but we also need to bring innovations to market faster and lead to business success. The third step is then to open up new future fields. Our aim must be to play forward and attack again.
Your predecessors have already said that.
And they were right. This requires more speed at Bosch. We have to decide and implement faster. My credo is: “Discuss, Decide, Do”. In many areas, the lead market for innovations is no longer Europe, but China - and the Chinese are fast. We must therefore free ourselves from the shackles we have placed on ourselves. Bosch needs an improved operating system; the old one is too rigid.
Industry
The world's largest automotive supplier Bosch is growing - but only through acquisitions
What is important about this?
We come from a culture where it is important to avoid mistakes at all costs. This is the right approach in the automotive industry, especially when it comes to safety aspects. But this cannot be the basic principle for all entrepreneurial activities. Because if you decide faster, you will inevitably make mistakes - and it is precisely this courage to make mistakes that I explicitly want to demand. This will be the biggest change under my leadership.
Do you have an example so we can imagine it better?
We have decided on immediate measures. For example, we are increasing the value limits for transactions requiring approval by 50 percent. This increases the scope for action and noticeably speeds up decisions - this applies immediately.
Do you also want to remove entire management levels?
Not across the board, but we will fundamentally realign the interaction between headquarters and stores. The operating units should be given significantly more entrepreneurial freedom. Bosch has a very broad base. Our foundation's mission is diversification - in the business portfolio and regionally. So far we have overemphasized the topic of synergies. Of course there are those in technology and purchasing. But household appliances, building technology and automotive have completely different customer groups, speeds and quality requirements. The latter are many times higher in a car than in an ice cube machine.
Bosch hasn't always been so successful in developing new businesses recently. This is shown by the example of stationary fuel cells. What should be different now?
To date, Bosch has generally entered into new businesses when we have seen sales potential of at least one billion euros. In the future we will also go into smaller fields. If a business only brings in 200 million euros in sales but a return of ten percent, then we find that interesting and look at how we can make it bigger. However, in every business we have to answer the question of how we achieve a leading position.
Vita Christian Fischer
Born in Hamburg, he studied and received his doctorate in economics in Hohenheim. He then began his professional career at Bosch in 1996 as a trainee. After working at Roland Berger, Walter Bau, Smartrac and Roland Berger again, he returned to Bosch in 2018 directly to the top management. In January 2022 he was promoted to Stefan Hartung's deputy. His most important tasks include the company's strategy and M&A. On July 1st, the now 58-year-old surprisingly replaced Hartung at the top of the company.
In addition to car parts, the foundation company also produces chips, household appliances, power tools, energy, building and industrial technology. In the first half of the year, Bosch increased sales by 3.6 percent to 46.4 billion euros thanks to an acquisition. The return on sales fell from 5.1 to 4.6 percent. The group has announced the reduction of over 25,000 jobs in Germany, mainly in the mobility division due to the car crisis, high location costs, but also management errors.
Won't Bosch then become even more confusing?
No, quite the opposite: We bundle these activities in a specialized unit that focuses on building such businesses in an agile manner. Our goal is to noticeably simplify Bosch at its core and remove complexity - we are working hard on this.
When it comes to future fields and returns, Bosch would have to invest much more heavily than before in semiconductors. The margins there are clearly in the double digits?
Semiconductors are a capital-intensive business. We now have three of our own plants and a ten percent stake in ESMC in Dresden for 500 million euros. We could certainly go deeper into the business, but as a foundation company we have to pay attention not only to returns, but also to our rating, capital allocation and risk profile. In addition, the socially acceptable implementation of the necessary workforce reductions in Europe costs us billions that are not available for investment. Bosch can also only spend the euro once, and we invest a lot in our core business.
That no longer grows.
Although the automotive sector is highly innovative, it is no longer a growth market in terms of the number of units produced worldwide. We also currently see largely saturated markets for household appliances in North America, Europe and China.
Sounds gloomy...
This is a sober inventory. We are seeing strong growth in building and energy technology, and the industrial business is also recovering. So there are also bright spots.
Then you would actually have to get rid of the household appliances?
How come? We are the market leader in Europe and have the largest service organization here with over 10,000 technicians. This is a huge advantage that cannot be copied so quickly. We won't let ourselves be displaced so easily by Asian providers.
Are you worried about the takeover of Media Markt by the Chinese company JD.com?
We are taking a close look at the developments.
And the auto industry? One has the impression that the crisis is getting worse.
The German auto industry must become more competitive again. This also includes the current discussion about working hours and flexibility. It's about working more where there is a lot to do and working less where demand is falling. If we are honest, we should also talk about the high level of sickness in Germany.
Industry
“Nobody knows when the crash will stop” – losses in China endanger the overall balance sheets of the car companies
Why don't we talk about it?
Sick leave is still a sensitive topic and the debate quickly becomes emotional. Don't get me wrong: If you're sick, you belong in bed and not at the assembly line or at the desk. From a macroeconomic perspective, we in Germany can no longer afford to ignore the issue. We have to talk about it openly and objectively.
Where would you start?
This is the task of politics together with the social partners. But that's not my point. Rather, I am concerned with strengthening competitiveness and the necessary adjustment of capacities. We have to find individually appropriate answers.
What can that look like?
One example is our Leinfelden location: We have found a partner in the defense company Hensoldt who wants to rent space from us there - this opens up concrete opportunities for our employees to apply for new positions locally.
An isolated case, right?
Another example is Bretten. We cannot continue to operate the site in this form, but the local production of extractor hoods is a business that can be interesting for other companies. That's why we're currently looking for a potential partner. It's complex, but that's exactly what I expect: intelligent solutions that take into account both the perspective of the location and that of the individual employees. Despite our best efforts, we will not always succeed.
Christian Fischer
This is how the new Bosch boss ticks
Will the unions take part or will Bosch have to withdraw from the collective bargaining agreement?
We are clearly committed to social partnership. And we have entrepreneurial-minded works councils with whom we work constructively. At Bosch, agreements also exist at site level. This allows us, for example, to secure employment by reducing working hours or making them more flexible. One thing is clear: the cake is not getting any bigger.
This is not good news for Chancellor Friedrich Merz...
The global auto industry has largely only experienced growth through 2017. At that time it was assumed that production would increase to more than 100 million vehicles annually, i.e. that it would continue to grow. We are currently at around 90 million vehicles per year. The car world has changed radically. It took a while for the entire industry to respond to this.
Is Bosch cutting more than 20,000 domestic jobs enough?
What level of cars produced in Germany and Europe and what level of added value for the supplier industry are we aiming for in the end? That is the core question that needs to be answered. The adjustment process of the German and European auto industry will continue until the new balance is found.
Where is there still high potential for growth?
The Indian market now includes around six million vehicles produced and is larger in terms of the number of units than the German one. In perspective, it is heading towards eight million. This is the third largest car market in the world. We have been in India for over 100 years and participate disproportionately in the growth. We are one of the few suppliers that operate in all major parts of the world
