Parts supplier will close its Cardiff factory in summer 2011
15 January 2010

Car parts manufacturer Bosch has announced it will close its South Wales plant with the loss of around 900 jobs.

Bosch will shift the work at the Cardiff plant to Hungary from 2011 and said it needed to restructure its business if it was to prosper in the long term.

In a statement, Stefan Asenkerschbaumer, president of the Bosch starter motors division, said: “I deeply regret that we could not find a solution for the Cardiff plant. I have spent time in a previous role as plant manager in Cardiff and I know first-hand the dedication and commitment of the employees here.

"Therefore, this is for me personally one of the toughest decisions in my career. Without structural adjustment the long-term commercial future of the whole division is at serious risk."

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9

15 January 2010

The reduction in sales for bosch alternators appears greater than that for cars. Are they losing market share? Is it the switch to integrated starter/alternators? Or have they been transferring work back to the homeland already. Whatever the cause, the timing seems poor when the age of the electrically powered car is dawning. Alternators and motors are very similar.

15 January 2010

The greater fall in Bosch's production to the car maker's production is to do with supply line effects: the car maker has stocks of finished cars, finished engines, delivered alternators and starters, which he will use up first against a crash in car demand, plus Bosch would have had finished goods stocks, which basically means the supplier sees amplified fluctuations in demand and production schedules from that experienced by the car maker; a feast to famine and possibly back to feast scenario. Although just in time is often spouted there will nearly always be stocks/inventory in the supply pipeline and thus amplified fluctuations as slack is created and then take uo, like a whip effect.

Think the real reason for Cardiff's closure is Bosch concentrating on being near its customers. I would doubt that they would have got the majority of the contracts in UK from Toyota(Denso) and possibly Nissan and Honda. Hungary is near major engine plants like Audi Gyor and main assembly centres like VW Bratislava and of course Skoda in Czech republic. The centre of gravity of European car production has moved to the east, away from Japanese transplant dominated UK, which seemed the way ahead for Europe-wide auto making, when Bosch set up in Cardiff some twenty years ago. How times and perceptions of winners and losers change.

15 January 2010

Pity that Messrs. Broon & Co. couldn't have paid the international freight bill at Cardiff given that a significant number of ex-Boschers will now be signing on. Good job there are many more countries now sailing under a European flag else we'd already have our 'sick man' status back - whose big idea was it to vote the Scots in anyway?

15 January 2010

[quote ThwartedEfforts]whose big idea was it to vote the Scots in anyway?
[/quote]

Thwarted, it's not solely the Jock mafia to blame. Anyone who saw the recent BBC programme on Rhodri Morgan, Wales' First Minister, done on the occasion of his retirement, would have been left speechless and depressed at the incomptence and corruption of Morgan and the whole Welsh administrative apparatus, put in place for 'Devolution'.

The man was shown going around Washington D.C., at UK taxpayers' expense of course, telling baffled Yanks about how Wales was the new 'Green' economy, at the forefront of the next industrial revolution, in this 'green'/renewables economy thing, and yet receiving phonecalls from lackeys back at base in Cardiff on almost daily closures in what was left of Wales' existing economy, like Bosch's alternator plant, for which he never seemed to see the contradiction.

But, best of all, the buffoon Morgan, was seen openly lying for a high-paid flunkey, a woman who had been accused of going around the world on first-class flights, at taxpayers' cost, ostensibly to promote Wales and its location for inward investment, having taken the word of another flunkey, who had 'checked out' the allegation, only to have to retract his defending of the woman flunkey, when it turned out she had been flying first-class; whilst telling everyone else in Wales to minimise their carbon footprint. Best of all, Morgan neither sacked the woman - who had prima facie defrauded the public purse - nor called in the police to investigate the suspected fraud, nor sacked the second(of course highly-paid flunkey), who investigated the woman flunkey - conspiracy to defraud between the two flunkeys? - nor of course he(Morgan) himself resign, nor offer to resign.

So there you go, a First Minister, who is pathetic, a hypocrite, not to mention a bore with zero innate leadership ability, covers for the looting of the public purse. But then, with the Robinsons in N.Ireland, the near 100% looting in Westminster, it is no wonder almost all high officials in UK almost feel obliged to go with the flow and help themselves to whatever they can get - before the whole festering heap falls over.

Cardiff/Wales is nothing but a rotten borough, like those of the 18th/early 19th century in England, utterly corrupt, run by a small clique, whose only interest is to preserve and maintain their parasitic status and the high life it gives them. N.Ireland and UK as a whole same.

So good wishes to Bosch, best of out of it and concentrate on those parts of the world where they still value the making of things over the looting of the common wealth - what's left of it.

15 January 2010

BBC News...

It said that compared to 2008, sales of its alternator products made at the site near Miskin were down 45% in 2009.

Ouch...That’s a hell of sales hit.

Plant director Adam Willmott said move was one of "pure economics" after a feasibility study had concluded the switch to Hungary, where labour costs were 65% of those at the plant, was necessary to gain the benefit of economies of scale.

Well at least it’s not German jobs.


Bloomberg...

Bosch is seeking to cut costs after suffering its first operating loss in 60 years in 2009 amid a 1.6 percent drop in European auto sales. The Cardiff plant has been selected for closure because it supplies BMW, Daimler AG’s Mercedes-Benz unit and a number of truck manufacturers, markets where demand has been weakest, spokeswoman Emma Hills said in an interview.

It's being closed because they can build the same part a hell of a lot cheaper in Hungary.


Sales at luxury carmakers including BMW and Daimler AG slumped last year as they failed to benefit from government incentive plans which spurred sales of less costly vehicles. Deliveries fell 15 percent at BMW and 14 percent at Mercedes, according to the European Automobile Manufacturers’ Association.

And yet Merkel continues to subsidize salaries at these plants to maintain output for cars no one can presently afford.

You don’t need a weatherman
To know which way the wind blows
—Robert Allen Zimmerman

15 January 2010

[quote BigEd]So good wishes to Bosch, best of out of it and concentrate on those parts of the world where they still value the making of things over the looting of the common wealth - what's left of it.[/quote]

The only looting I see is that Germany is happy to sell cars to the UK; they just don’t seem to care much about preserving jobs there. Another reason to not totally abandon homegrown manufacturing, it leaves you at the mercy of carpetbaggers.

You don’t need a weatherman
To know which way the wind blows
—Robert Allen Zimmerman

15 January 2010

[quote jackjflash]

Sales at luxury carmakers including BMW and Daimler AG slumped last year as they failed to benefit from government incentive plans which spurred sales of less costly vehicles. Deliveries fell 15 percent at BMW and 14 percent at Mercedes, according to the European Automobile Manufacturers’ Association.

And yet Merkel continues to subsidize salaries at these plants to maintain output for cars no one can presently afford.

[/quote]

You do know that these 'Merkel-subsidized plants' don't just produce for Europe? Yes? No?

Before you get your knickers in a twist best you understand that Europe was a bust for all premium makers in 2009, as was the US, but for the German premium marque trio this was somewhat offset by gains in China, and a few other expanding markets. Plus, VW did ok in Europe anyways: VW group 1% up on 2008 for full year 2009 and VW brand 5% up.

Like the Bosch spokesman said Hungary is cheaper for wages, although the Hungarian Forint has appreciated quite a bit against the euro in the last 11 months, but it also - the reason to move to Hungary - is to be nearer to the centre of its major customers. Since 1991, Bosch Cardiff's inception, Rover Group has gone, Vauxhall Luton car plant has gone, Ford UK car production has gone - although alternators may be supplied for engine dress at Ford's engine plants in UK - and Peugeot Coventry has gone, with only MINI's opening offsetting the downward UK trend. Meanwhile the old Iron
Curtain countries have expanded in leaps and bounds in auto production. This was bound to happen.

15 January 2010

[quote BigEd]Before you get your knickers in a twist best you understand that Europe was a bust for all premium makers in 2009, as was the US, but for the German premium marque trio this was somewhat offset by gains in China, and a few other expanding markets. Plus, VW did ok in Europe anyways: VW group 1% up on 2008 for full year 2009 and VW brand 5% up.[/quote]

I’m not talking about your VAG Cart; I was referring to the premium manufacturers Bimmer&Merc.

[quote BigEd]Like the Bosch spokesman said Hungary is cheaper for wages, although the Hungarian Forint has appreciated quite a bit against the euro in the last 11 months, but it also - the reason to move to Hungary - is to be nearer to the centre of its major customers. Since 1991, Bosch Cardiff's inception, Rover Group has gone, Vauxhall Luton car plant has gone, Ford UK car production has gone - although alternators may be supplied for engine dress at Ford's engine plants in UK - and Peugeot Coventry has gone, with only MINI's opening offsetting the downward UK trend. Meanwhile the old Iron
Curtain countries have expanded in leaps and bounds in auto production. This was bound to happen.[/quote]

That is just fantasy BS Cart, it was cheaper to manufacture in Hungary, so the locust left town.

You don’t need a weatherman
To know which way the wind blows
—Robert Allen Zimmerman

17 January 2010

Next Jag production to move to India !

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