Bosch is spinning its automotive parts unit into a separate company

The Mobility activities, along with Bosch Digital, Global Business Services and Global Real Estate, will become four wholly owned limited liability company subsidiaries within the Bosch Group. Bosch said the business fields in its Industrial Technology, Consumer Goods, and Energy and Building Technology sectors operate as separate subsidiaries today, and Mobility and the service units will follow that model in Germany.

Roughly 62,500 staff based in Germany, most of them working in Mobility, are due to be moved over to the newly created units, according to Reuters. Robert Bosch GmbH will become a headquarters and central research body with a workforce of over 3,000, according to Reuters.

Bosch intends to phase in the restructuring before the close of 2027, and the new companies are due to start work on Aug. 1, 2027, according to Reuters. Reuters also reported that Bosch said the arrangement could pave the way for strategic tie-ups and new ways of doing business.

Bosch is not planning an IPO or sale of Mobility, nor a merger of the unit with another auto supplier, a company spokesman said, according to Bloomberg.

"We are operating in an increasingly challenging environment across our markets," Chairman Christian Fischer said in a statement, according to Bloomberg. "New competitors, particularly from Asia, are intensifying the competitive pressure," Fischer said. According to Bloomberg, he said the restructuring will give the car-parts business room to adapt faster to shifting markets and to better match what customers now want.

Mobility is Bosch's largest business sector. It brought in €55.8 billion in sales in 2025, while profitability slid to an operating margin of 1.8%, down from 3.8% the previous year, according to Bloomberg. Bosch has said that reaching its profitability target means eliminating a yearly shortfall in costs of roughly €2.5 billion, according to Bloomberg.

Last year, Bosch revealed a plan to cut roughly 13,000 positions, with most of the reductions falling in the Mobility business, according to Bloomberg. Mobility sales edged down to €27.8 billion in the first six months of this year, and Bosch has cautioned that difficult conditions in the car market will probably continue, according to Bloomberg.