Business Information Bosch Corporation Press Release

• Largest engineering base for braking systems outside Germany
• Investment of 3.5 billion Yen

Tokyo, Japan - Bosch Corporation today announced the expansion of its Technical Center Memanbetsu in Hokkaido. With the land purchase completed, the area now increases from approximately 30ha to nearly double that size. As a first step, Bosch will invest some 3.5 billion Yen into the new facilities within the current planning timeframe.

The center is part of the companies' Chassis Systems Control division in Japan. The major focus lies on the expansion of the vehicle proving ground used for development and testing of ESC (Electronic Stability Control) and driver assistance systems. The Bosch Group operates ten proving grounds for braking systems around the world, all designed to the same standard. With the extension at the Memanbetsu site, Bosch also plans to establish a large area for dynamic driving maneuvers, used for ESC application. The track designed will be similar to the proving grounds in Boxberg (Germany), especially known for its R&D capacities of advanced braking systems near the division's German headquarters.

This latest investment will further strengthen Japan's position as the largest engineering base of the Bosch Chassis Systems Control division outside of Germany, serving Japanese vehicle manufacturers all over the world. In 2008, Japan became the key development base for ABS (Antilock Braking System) within the Bosch Group.

While in Japan, 89 percent of passenger vehicles were already equipped with ABS in 2008, the demand for ABS is rising especially in Asian emerging countries. For example in India, China and ASEAN, ABS installation rates in 2008 were far below the worldwide average of 76 percent. Therefore the importance of having ABS development and testing facilities available in the region has increased.

Furthermore, Bosch expects the demand for ESC to increase substantially as a result of legislative initiatives worldwide. In 2008, around 33 percent of passenger vehicles produced in Japan were equipped with ESC. ESC has already become mandatory for all new passenger cars in the US (by 2012) and Europe (by end of 2011 for new models and by end of 2014 for all new vehicles). In Japan, an ESC regulation for passenger vehicles is currently discussed.

Dr. Wolfgang Hiller, President of the Chassis Systems Control division Japan explains: "Worldwide, there is an increasing trend to active safety systems (preventing accidents) such as ABS and ESC cooperating with passive safety systems (mitigating the damage of an accident) such as airbags and seat belts. We expand our development and application capabilities in Japan in anticipation to the manufacturers increased demand for ABS and ESC technology."

Bosch has long been striving to contribute to road safety and provide innovative solutions to vehicle manufacturers. As early as 1978, the company brought ABS to the market, laying the foundation for all subsequent active safety systems in motor vehicles. The first ABS in Japanese passenger cars was launched by Bosch in 1984. Bosch started to develop ABS for motorcycles in Japan in 1989. In 1995 Bosch followed with the market launch of the ESC, a system which integrates the function of the ABS, but has an added functionality to prevent skidding. In its concept of "Vehicle Motion and Safety" (VMS), Bosch is expanding the scope of ABS and ESC, linking them with passive safety systems, new sensors, chassis and steering domains in order to create innovative safety functions that further reduce the risk of traffic accidents.

In addition to the expansion of the Technical Center Memanbetsu, Bosch has already started to enlarge its Chassis Systems Control Yokohama headquarter to double the available office space by the end of 2009.

Press contact:
Masao Nagasaki, Tel.: +81 3 5485-3393