(Bloomberg) — Robert Bosch GmbH expects the semiconductor shortage and materials-cost increases that have weighed on automakers to continue hampering vehicle output this year.
While the biggest auto-parts maker sees global production rising to around 85 million units in 2022, that’s still about 8% below pre-pandemic levels, it said Wednesday. Bosch plans to spend 400 million euros ($457 million) to expand chip facilities in Germany and Malaysia to help ease the bottleneck.
“There’s great uncertainty,” Chief Executive Officer Stefan Hartung said on a call with reporters. Bosch expects to grow revenue again this year, from 78.8 billion euros in 2021, provided there are “no major additional disturbances.”
READ MORE: Bosch Picks Hartung as New CEO to Tackle Industry Transformation
Hartung, who took over as CEO at the start of the year, is pushing to make Bosch fit for the industry’s shift toward battery power and digital services. Last month, the supplier announced it’s partnering with Volkswagen AG to develop a common software platform to bring hands-free driving functions to the carmaker’s entire fleet in a bid to catch up to Tesla Inc.
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