Europe’s vehicle field way too reliant on other areas, suggests Bosch chairman

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A employee at the Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. Swen Pfoertner/Pool via REUTERS

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FRANKFURT, Dec 11 (Reuters) – Europe’s automotive sector has develop into far too reliant on Asia and other areas for crucial components these as semiconductors and battery cells, Bosch’s (ROBG.UL) outgoing chairman told a German newspaper.

Automotive Chips and battery cells have turn into the two most significant components in the age of electric powered and autonomous vehicles, forcing European carmakers to depend on Asian suppliers as nearby business has been slow to make ability near by.

“Indeed, we have turn into too dependent on other locations, and a modify of study course is wanted,” Bosch’s Supervisory Board Chairman Franz Fehrenbach, who actions down at the conclusion of the yr, instructed Frankfurter Allgemeine Zeitung.

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“Nevertheless, this is not the fault of politics, but is linked to cost optimisation in the offer chain,” he stated. “The car market is bit by bit inquiring by itself how raw content source will appear like, especially for battery cells.”

German corporations have outlined options to claw again handle, which include Volkswagen (VOWG_p.DE) which options to establish six substantial battery cell factories with partners in Europe by 2030.

A world scarcity of automotive chips has highlighted the trouble, producing the European Union to start subsidy programmes to entice chipmakers to the continent.

Bosch, the world’s biggest automotive supplier, opened a 1 billion euro ($1.1 billion) chip plant in Germany this yr, its largest-ever expense, as it stakes a declare to equipping the newest electric powered and self-driving cars and trucks. read more

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Reporting by Christoph Steitz Modifying by Edmund Blair

Our Expectations: The Thomson Reuters Have faith in Ideas.