Bosch. Suppliers die first.
Bosch is the world's biggest automotive supplier, and it's cutting 13,000 jobs. The parts you can name are the last to disappear.
THE GIST ON BOSCH: "Check Engine"
Who is Bosch?
One of those German engineering companies you know from the green drill in your toolbox. It's actually a 140 year old industrial giant, privately owned by a foundation. It invented fuel injection, and 60% of its revenue comes from car parts. It built the invisible plumbing in nearly every car of the last 50 years.
Why are car parts disappearing?
A modern petrol car has about 30,000 parts. A modern EV has about 7,000. Most of the 23,000 that go missing are made by Bosch. EVs don't need spark plugs or complex multi-gear transmissions. The whole product line Bosch was built around is becoming obsolete one component at a time.
What has Bosch done about it?
It's now laying off 13,000 people and has delayed its profit targets twice. It did see this coming. It spent the last decade pouring billions into EV components and automated driving. But China got there cheaper. The same thing is happening to Continental, ZF and Schaeffler.
What is the bigger lesson?
Every industry dies from the suppliers up. It's a bit like a breakup: the decision happens weeks before the conversation. The same is true of careers, relationships and health. The signs are always there, and the hardest ones to see are the ones that threaten what you're best at.
Would you buy an electric car?
Your take. One tap, then see how everyone else voted.
Quick answers
How many jobs is Bosch cutting?
13,000.
Why do EVs hurt Bosch?
A petrol car has about 30,000 parts and an EV about 7,000, and EVs don't need spark plugs or multi-gear transmissions.
Which other suppliers face the same problem?
Huw names Continental, ZF and Schaeffler.
See you on the next one.
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