Bosch Sales Drop Due To Eurozone Crises

Robert Bosch is seeing a drop in orders because of Europe’s worsening debt crisis, weak recovery in the United States and a slowing down of car sales in China. Bosch CEO Franz Fehrenbach said the debt crisis in Europe is causing uncertainty that is already hitting order intake and may lead to a recession.
“The chaos has gotten bigger and so the crisis has worsened. I fear that the crisis atmosphere is weighing on demand,” Fehrenbach said in an interview. “We can no longer rule out a recession if the uncertainty continues,” the CEO continued. Fehrenbach also mentioned that Bosch is beginning to see the first fall in orders because of weak southern European markets and slow recovery the U.S. ”The economic situation in the U.S. has not shown the desired recovery and the country is showing a disappointingly slow growth,” he said. Fehrenbach said China is a worry too, with an expected increase in car sales of 3 percent this year as the government deliberately puts the brakes on growth.