Bosch Warns of Revenue Decline and Job Cuts

BERLIN (Reuters) – The chairman of German auto parts supplier Robert Bosch warned on Thursday of declining revenue in the coming year, stating that he cannot rule out further job cuts in Germany in addition to the 7,000 already announced.

The announcement, made in an interview with chairman Stefan Hartung published by Der Tagesspiegel newspaper on Thursday, adds to the gathering gloom in the auto industry that underpins Europe's largest economy.

Profit at Volkswagen (ETR:VOWG_p) plunged to a three-year low in the third quarter, according to Europe's largest carmaker's report on Wednesday. Workers are threatening to strike over VW's cost-cutting plans, which include closing plants in Germany and cutting pay.

Hartung noted that Bosch's turnover is expected to be slightly below last year's 92 billion euros. Additionally, the return on sales, which the company aimed to grow by two percentage points over last year's 5%, is projected to reach only 4% at most.

"I cannot rule out that we will have to further adjust personnel capacities," Hartung said, urging the government to enhance support for the industry.