OREANDA-NEWS. September 30, 2014. Commercial vehicles fitted with cruise control move at a constant speed – developments in the commercial vehicles business, by contrast, tend to be not as smooth. Currently, this business is developing very dynamically at Bosch.

Three things characterize our business: efficiency, connectivity, and growth. My talk today will address all three.

First, there is still considerable potential to reduce the operating costs of trucks, transporters, and buses. We can do this both with conventional and new drive systems.

In addition to this, we are networking our systems. Not only are we doing this inside the vehicle, we are also taking the cloud to the streets. We are developing new services via the internet.

In so doing, we are making commercial vehicles even more useful - and this is also benefiting our own business. At the moment, we are growing particularly fast. Global commercial vehicle production is expected to expand between 2 and 3 percent this year. At Bosch, our sales in this segment are set to increase more than 10 percent. Our growth in the truck and bus market is in the fast lane.

On growth course: clean diesel gets a boost in China

Let us first stay on the topic of our business development. Bosch Automotive Technology makes a quarter of its sales with equipment for trucks, vans, and buses, and half its sales with diesel systems. As a result of the dynamic growth in our commercial-vehicles business, the business sector is developing significantly better than the market. In 2014, we expect Bosch automotive technology sales to grow by 7 to 8 percent. At the same time, global automobile production will see 3 to 4 percent growth. The positive state of our business is reflected in our headcount: By the beginning of 2015, our Automotive Technology business sector will employ a good 193,000 associates, almost 13,000 more than at the start of 2014. This increase will mainly take place in Asia.

In particular, demand from China is giving our commercial-vehicles business an extra boost, especially in the area of diesel systems. This is largely attributable to the China4 emissions standard, which calls for electronically controlled high-pressure injection and exhaust gas treatment systems. Bosch is well prepared for this development. Our technology for trucks and buses is helping cities like Beijing and Shanghai reclaim their clean air. This year, we expect to sell twice as many common-rail systems in the Chinese commercial-vehicle market as in 2013.

Demand for our diesel systems is also high outside of China. This year, we will be delivering almost a million Denoxtronic exhaust-gas treatment systems worldwide to the truck sector – the first time we have done so. Moreover, unit sales of our common-rail systems for commercial vehicles are developing very encouragingly across the globe. These systems are installed not only in trucks, vans, and buses, but also in off-highway vehicles such as tractors and construction machinery. We are preparing for stricter emissions standards here as well. Diesel systems are not the only thing we supply to the off-highway segment. We also offer large starters and generators, as well as the mobile hydraulics of our Bosch Rexroth subsidiary.

Our portfolio for commercial vehicles of all types is broad, as is our global presence. And we continue to expand this presence. We already manufacture diesel systems for commercial vehicles in seven countries: the United States, Brazil, Germany, the Czech Republic, Japan, India, and China. This year, will be adding another Chinese location to this manufacturing network. When it comes to the Asian growth market, we are developing special solutions. Our lubricated common-rail pumps, which are robust even in the event of lower-grade fuel quality, are a strong example. We developed this product in China, for China, but also for Russia and India.

In addition, we are stepping up our innovative capabilities. Over the course of this year, our Automotive Technology business sector will see its research and development workforce grow from almost 35,000 to more than 37,000 associates. Of these, 19,000 will be located in Europe, 2,000 in the Americas, and 16,000 in Asia-Pacific. This team is coming up with innovations for the efficient and connected commercial vehicles of the future.

More efficiency: fuel savings with conventional and new powertrains

The currently good development of our business is one thing I wanted to talk about. Another is efficiency, and in the first place fuel savings and climate protection. One percentage point at a time, our engineers are working on further reducing the fuel consumption and thus also the CO2 emissions of trucks and buses. This is technology “Invented for life,” technology that clearly reflects Bosch's strategic imperative. It is a green technology that pays off, in economic terms as well. Logistics companies notice its value in their books. Overall, our measures can reduce the fuel consumption of commercial vehicles another 15 percent by the end of this decade. At current fuel prices, this will mean a reduction in operating costs of 10,000 euros per truck each year for vehicles driving an average of 135,000 kilometers.

With our new CRSN3-25 common-rail system, we have already reduced fuel consumption by 1 percent. This amounts to savings of almost 700 euros per truck each year. It offers high-tech in two ways:

First, with leakage-free injectors, which prevent even the smallest drop of fuel from being returned unused into the rail.

Second, with injection pressure of 2,500 bar, which enables the fuel mixture to be so finely adjusted that the system can flexibly employ exhaust-gas treatment or recirculation as needed. This allows us to deliberately save AdBlue.

When I say deliberately, I mean that we are reacting to the cost of AdBlue, which can vary widely from region to region. Where the urea solution that is needed to reduce nitrogen oxide emissions is expensive, we reduce its use. Doing so requires higher pressure and more exhaust-gas recirculation. Even in the fight against emissions, Bosch takes efficiency into account. This also enables logistics companies to reduce their operating costs.

All this is the result of the deep systems expertise that our engineers bring to the table. It should be noted here that we can only design the full system so flexibly because we also offer all the necessary components, from sensors and injectors to Denoxtronic. When it comes to technology for diesel commercial vehicles, we are the global market leader and a full-service technology provider. And we can improve efficiency and emissions with two additional levers.

With our Bosch Mahle Turbo Systems joint venture, we have been offering exhaust-gas turbochargers for commercial vehicles since 2012. The activities of this joint venture focus on our diesel business. The aim is also to deliberately address the needs of truck manufacturers. Its range of turbochargers covers engines delivering between 30 and 520 kilo-watts. In other words, they are just as suitable for small machines as for heavy trucks. And this year, we are opening a new turbocharger plant in Shanghai, so that we can serve Asian customers from a local manufacturing base.

With our Bosch Emission Systems subsidiary, we offer full exhaust-gas treatment packages - solutions that can be tailored to special vehicles. This business is growing as a result of increasingly strict emissions standards for off-highway vehicles. And demand is also growing in the conventional truck segment. To meet this demand, we are expanding our plant in Neunkirchen, Germany.

All this clearly shows that our product portfolio is based on a profound systems expertise. This know-how is what allows us to keep optimizing the diesel engine in commercial vehicles. When it comes to the necessary efficiency targets, however, we think beyond conventional powertrain systems by complementing them in three areas:

First, we offer powertrain technology for natural gas, an alternative fuel that is especially affordable and less CO2-intensive. Here, too, we offer a full portfolio of products that includes control units, sensors, and injection valves. Infrastructure is currently growing with the market, for instance with gas service stations along long-haul routes in the United States, or with local networks in China. As early as 2015, Bosch will fit almost 50,000 commercial vehicle engines with natural gas drives – twice as many as in 2014. In the long term, the exploitation of large gas reserves will support growth in China and North America. Globally, the number of trucks and buses running on CNG will increase by an annual average of 13 percent between now and 2020.

Second, we are working to electrify powertrains for commercial vehicles. To this end, our EM-motive joint venture will also produce electric motors that are designed for use in trucks as well. By the end of the decade, we aim to develop an electric hybrid for trucks that will pay for itself within two to three years. With a hybrid solution, the fuel consumption of heavy-duty vehicles on long-haul runs can be reduced by as much as 6 percent, while the figure for vans on delivery runs is between 10 and 15 percent. As a result of their higher mileage, long-haul trucks fitted with an electric hybrid can significantly reduce their operating costs by up to 4,000 euros per truck each year.

And third, using engine heat recovery allows a 5 percent decrease in the fuel consumption of commercial vehicles. Here, too, we expect the corresponding solutions to be market-ready by the end of the decade. It's important to note that heat recovery reduces fuel consumption in instances where the electric hybrid's strengths come less into play: at constant speeds over long distances.