BERLIN, Jan 8 (Reuters) - German automotive supplier Bosch expects a slump in 2025 earnings with another difficult year ahead as tariffs bite and weak growth weighs on consumer spending, its CEO said
Bosch Prepares for 2025 Profit Decline and Challenging Year
BERLIN, Jan 8 (Reuters) - German automotive supplier Bosch expects a slump in 2025 earnings with another difficult year ahead as tariffs bite and weak growth weighs on consumer spending, its CEO said in a newspaper interview on Thursday.
Costs from steep tariffs and redundancy packages will continue into 2026, with some 22,000 job cuts planned at Bosch as German suppliers struggle with a slowdown in the domestic auto industry and competition from abroad.
As a result, Bosch expects 2025 earnings before tax to come in significantly below target and be lower than 2024, already a weak year for the supplier, Bosch Chief Executive Stefan Hartung told German newspaper Die Zeit.
"Customers' willingness to pay higher prices is declining," Hartung said.
"In 2026, growth in the U.S. and China will slow down, and the forecasts for Europe and Germany are not good either. All of this will be reflected in our business figures for 2025 and 2026," he said.
Bosch will not reach its long-term target of an operating margin of at least 7% before 2027, he added.
(Reporting by Rachel MoreEditing by Madeline Chambers)
