Bosch Corporation Press Release

• 14 % of new vehicles registered during 2007 in Japan equipped with ESC
• A third of all passenger cars and light commercial vehicles under 6 tons produced worldwide in 2007 equipped with ESC
• ESC mainly reserved for luxury car segment in Japan
• European Commission submits legislative proposal for mandatory ESC in Europe from 2012
• Bosch to invest 60 Mio Euro in its Japanese technical center and test course to meet increasing demand for ESC

In 2007, approximately one third of the 73 million passenger and light commercial vehicles below 6 tons produced worldwide were fitted with ESC. This figure is projected to reach 44 percent by 2010, and by 2012, every second vehicle is expected to have ESC on board. This worldwide increase can be attributed largely to the legislative developments regarding ESC in the US and Australia. Of the 27 percent of ESC-equipped vehicles produced in Japan last year, only around half were designated for the domestic market.

The domestic ESC installation rate for newly registered vehicles in 2007 stands at approximately 14 percent, compared to the 10 percent recorded in 2006. An analysis by vehicle segment indicates that the increase is due primarily to the standardization of ESC in the upper, luxury car and SUV segments. The Mini and Minivan segments, however, which together account for approximately 50 percent of all new car registrations in Japan, reflect either no ESC or an ESC installation rate below 10 percent. Even in the Small and Compact segments, which together comprise the next largest market share (25 percent), the installation rate has increased only marginally.

As an active safety technology that prevents accidents, ESC contributes to a reduction in traffic accidents and fatalities. ESC integrates ABS (Anti-Lock Braking System) and TCS (Traction Control System), and is an intelligent safety system that uses sensors to constantly monitor vehicle performance. If the system detects a risk of skidding, the appropriate wheel brakes instantly, and where necessary, the system controls engine output in order to stabilize the vehicle and put it safely on track.

It has been demonstrated that loss of vehicle control, or skidding, remains a dominant risk factor during the pre-crash phase. An international comparison of skidding occurrence in the pre-crash phase has proven that at least 20 percent of all accidents resulting in injury occur during this timeframe. And, in the case of fatal accidents the figure rises to 40 percent.

Broad proliferation of ESC across vehicle fleets has enabled evaluation of its effects in actual crash situations in many countries. Studies to assess the effectiveness of ESC have now been conducted in Japan, Germany, Sweden, France, the United Kingdom, the United States and Australia. There is clear evidence that ESC is highly effective in reducing single-vehicle accidents in cars and SUVs with studies estimating that ESC can reduce fatal single-vehicle crashes by between 30 and 50 percent for cars, and approximately 50 to 70 percent for SUVs.

Following the introduction in 2007 of US legislation requiring mandatory installation of ESC for all vehicles up to 4,5 tons from September 2011, the European Commission submitted its own proposal to the European Parliament and Council in May 2008 demanding that ESC be installed in all new vehicle types from October 2012 and in all vehicles from 2014.

Bosch, the first company in the world to market the ESC (Electronic Stability Control) system, is actively engaged in raising awareness on ESC and promoting its adoption in major markets worldwide. The company has actively sought to increase ESC adoption in Japan since 2002.

Bosch will invest approximately 60 Mio Euro in extending its Yokohama Chassis Systems Control headquarter and its test course in Memanbetsu, northern Hokkaido. Wolfgang Hiller, President of the Chassis Systems Control Division Japan, explains: “Considering the worldwide legislative developments, we are expecting that demand for ESC in Japan will rise considerably. We are ready to serve our Japanese customers both for their domestic and international projects.”