Bosch Critiques Proposed EU Combustion Engine Ban

Executives at Bosch voiced their concerns on Thursday regarding proposed EU regulations aiming to prohibit the internal combustion engine by 2025. They contend that legislators are avoiding a thorough discussion of the potential employment ramifications of such a sweeping change.

Job Market Implications

While Bosch acknowledges job creation within its emerging sectors, notably its fuel cell division, and reports filling over 90% of these roles from within, the company anticipates potential workforce impacts from a predominantly electric vehicle transition.

For example, the production of a diesel powertrain currently requires ten Bosch employees, while a gasoline system needs three. However, an electric powertrain necessitates the involvement of only one employee.

Alternative Fuel Technologies

Bosch advocates for the integration of renewable synthetic fuels and hydrogen fuel cells alongside the ongoing electrification of transportation. It’s important to note that renewable synthetic fuels, derived from hydrogen, represent a distinct technology from hydrogen fuel cells themselves.

Fuel cells directly convert hydrogen into electricity, whereas hydrogen-based fuels can be utilized in modified internal combustion engines (ICE).

The Potential of Synthetic Fuels

“A significant opportunity will be lost if renewable synthetic fuels, created from hydrogen and CO2, are excluded from the future of road transport,” stated Bosch CEO Volkmar Denner.

He further clarified that “climate action isn’t focused on eliminating the internal-combustion engine; it’s about phasing out fossil fuels.” Denner emphasized that both electromobility with green energy sources and renewable fuels can achieve carbon-neutral road transportation.

Limitations of Electric Solutions

Denner pointed out inherent limitations within current electric solutions, particularly when it comes to powering heavy-duty vehicles. Bosch recently formed a joint venture with Qingling Motors, a Chinese automaker, to develop fuel cell powertrains for a trial fleet of 70 trucks.

Investment in Multiple Technologies

Bosch’s commitment to hydrogen fuel cells and synthetic fuels doesn’t diminish its focus on battery-electric mobility. The company, a leading global supplier of automotive and industrial components, reports nearly 40% growth in its electromobility business.

They project annual sales of electric powertrain components to reach approximately €5 billion ($6 billion) by 2025, representing a fivefold increase.

Nevertheless, the German company is strategically “keeping its options open” by investing €600 million ($721.7 million) in fuel cell powertrains over the next three years.

The Importance of a Hydrogen Economy

“Europe’s ability to achieve climate neutrality ultimately depends on the development of a robust hydrogen economy,” Denner asserted.

Semiconductor Shortage Concerns

Bosch has also been affected by the ongoing global semiconductor shortage, which is continuing to impact 2021. Board member Stefan Asenkerschbaumer cautioned that this shortage poses a risk of “hindering the anticipated economic recovery” for the year.

Executives at Taiwan Semiconductor Manufacturing Company have indicated to investors that the supply chain issues may persist well into 2022.