Despite operating at high capacity and enjoying favourable market conditions, Bosch Mahle Turbosystems (BMTS) is seeking a buyer.
Bosch Mahle Turbosystems
Despite a positive market forecast for turbochargers, Bosch and Mahle have decided to seek a buyer for the Bosch Mahle Turbo Systems (BMTS) joint venture, which was founded in 2008. BMTS with its 1,400 employees develop and manufacture turbochargers for passenger cars and commercial vehicles. Its main production sites are located in St. Michael, Austria and in Shanghai, China. In Germany, BMTS is based in Stuttgart and Blaichach.
More investment required
In a press release, Mahle and Bosch openly stated that BMTS is not yet large enough to achieve a critical mass. Although the plants are operating at high capacity and growing, BMTS’ sales volume is still too low compared to its larger competitors and needs to be expanded. Dr Rolf Bulander, Chairman of the Mobility Solutions division at Bosch, states, “High volumes and the associated economies of scale are a major competitive advantage.”
He added that more investment will be necessary in order to achieve the required market share. Furthermore, both parent companies do not intend to push ahead with expanding BMTS since Bosch and Mahle will have to first and foremost invest in new research and development. Wolf-Henning Scheider, Chairman of the Mahle Group Management Board, states, “We are confident that we can find a prospective buyer who will succeed in developing the business based on BMTS’ state-of-the-art facilities and quality products.”