The double impact of high tariffs and weak consumption! Bosch warns: Profits may decline sharply in 2025, and the business situation is still grim in the new year

The Zhitong Finance App learned that the CEO of German auto parts supplier Bosch said in an interview on Thursday that due to the impact of tariff policies and the double impact of weak economic growth dragging down consumer spending, the company expects profits to drop sharply in 2025, and the business situation will remain grim for the next year.

Bosch is also planning to lay off about 22,000 employees, and says the pressure of high tariff costs and layoffs and resettlement compensation will continue until 2026. Currently, the growth rate of the German automobile industry is slowing down, and competition in overseas markets is intensifying, and German auto parts suppliers are facing serious challenges.

Bosch CEO Stefan Hartung said in an interview that due to this, Bosch's profit before tax in 2025 is expected to fall significantly below the target value, and further decline from 2024, when the performance was already weak.

“Consumer acceptance of price increases is declining,” Hartung notes.

He added, “In 2026, growth in the US and China markets will slow, and the outlook for the European and German markets is also not optimistic. These factors will all be reflected in the company's 2025 and 2026 operating results.”

Hartung also stated that Bosch will not achieve its long-term goal of operating profit margin of less than 7% until 2027.