• Development Research Center (DRC) report highlights how engine and vehicle manufacturers can adopt modern diesel technologies
• Diesel powered engines reduce fuel consumption by 30% and CO2 emission by 25% compared to gasoline engines
• Bosch and local engine producers develop fuel efficient, low noise diesel engines that meet Euro III standards
• German Association of the Automotive Industry (VDA): Suppliers and manufacturers are ready to support Chinas goals for resource saving

Beijing, April 12, 2006 – The commitment of the Bosch Group to help China utilize modern diesel technology to save energy, reduce exhaust gas pollution and minimize green-house gases was strongly confirmed during the International Diesel Development Forum held by the Foundation of Development Research on 11 April 06. The forum was attended by representatives of the Chinese government and local automotive industry, as well as international auto experts who explored what could be done at both policy and industry levels to promote modern diesel vehicles in China. At a subsequent press conference, Bosch and the VDA commented on the positive outcome of the event.

“As a company committed to China and the development of its local industries, we are encouraged by the goal of the Chinese government to create an energy-saving and environmentally friendly society, reflected in the Eleventh Five-Year Program”, said Dr. Rudolf Colm, Member of the Board of Management of the Bosch Group and responsible for the coordination of company activities in the Asia-Pacific region. “Yesterday’s Forum clearly showed the need to address environmental issues amid China’s impressive growth in mobility and demonstrated the advantages of Diesel technology. As the pioneer with almost 80 years of innovations in this field, Bosch will support China’s efforts with the localized development and production of modern diesel systems”.

DRC Industrial Economic Research Department’s report highlights Diesel in China

A report by the research group of the industrial economic research department of DRC appeals to adopt diesel technology for its ability to lower fuel consumption by 30% compared to gasoline vehicles, a decrease that could help China lessen its dependence on foreign oil by over 10% in 2020. Furthermore, the report estimates that if the percentage of China’s Diesel-powered passenger vehicles increases from 0.2% to 30% by 2020, the amount of CO2 in China’s air could be decreased by close to 42 million tons. Based on these findings the DRC highlights how tax incentives can encourage Chinese manufacturers to adopt modern diesel technology and also strengthen China’s innovative capabilities in this field.

Leading diesel technologies to contribute to China’s sustainable development

“To meet the specifications of carmakers here in China, local development and application are growing in importance.” said Peter Pang, President of Bosch (China) Investment Ltd. “Our technical center and manufacturing base for diesel systems in Wuxi is only one proof of our long-term commitment to China.”

Bosch enjoys a long term partnership with the Weifu Group. Together they inaugurated Bosch Automotive Diesel Systems’ new site last November in Wuxi in which Bosch will invest close to 200 million euros for advanced diesel systems by 2007. Only this March, the first locally developed heavy duty diesel engine with a Bosch Common Rail System was successfully launched. This engine meets Euro III emissions standards and is upgradeable to the advanced standards of Euro IV and V including low fuel consumption at low noise levels.

Prof. Dr. Bernd Gottschalk, President of VDA commented: “We recognise China’s need for environmental protection, resource saving and global industrial competitiveness. The German suppliers and manufacturers are ready and willing to accept the responsibilities that come with these ambitious goals. Our members will make their contribution in a joint effort to develop modern power train concepts such as diesel and hybrid for the Chinese market. With their innovative technologies for efficient and clean cars, the German automotive industry is a global leader and therefore a strong and reliable partner for China.”

Advanced diesel technology forms part of a wide range of world-leading automotive and industrial technologies that Bosch is introducing in China through joint-ventures, R&D facilities and technical centers.

About Bosch in China

Bosch founded its first trading office in China as early as 1909. In 1926, the first car service workshop opened in Shanghai. Today, all of the Bosch business sectors are present in China: Automotive and Industrial Technology, Consumer Goods and Building Technology. The company operates via a holding company in Shanghai, 14 subsidiaries, six joint ventures, and six trading companies. The 2005 consolidated sales in China reached 1 billion EUR, which represents a 35% increase compared to previous year. Considering non-consolidated entities, Bosch China achieved sales of 1.2 billion EUR in 2005, a 15% increase from 2004. Up to 2005, Bosch had invested around 620 million euros in the establishment and expansion of its Chinese activities. Between 2006 and 2008, it is planned to invest further a total of some 620 million euros in China. In the past five years alone, the number of Bosch manufacturing facilities there has doubled, from 10 to 20.

In China over 14,000 Bosch employees follow Bosch’s “3S principle” – Sicher (safe), Sauber (clean), Sparsam (economical) and are committed to bringing to the Chinese customers the latest technology as well as the most reliable services to help the Chinese people improve their quality of life. Innovation applied to environmental protection has been a corporate principle of the Bosch Group since 1973.

About Bosch Automotive Diesel Systems Co., Ltd.

Bosch Automotive Diesel Systems (RBCD) located in Wuxi, Jiangsu Province, was founded in July 2004 to support China’s rapidly growing automotive industry and to satisfy the increasing demand for vehicles with higher fuel efficiency and lower emissions. The solutions of Bosch Automotive Diesel Systems Co., Ltd. for Passenger Cars, for Light to Heavy Commercial Vehicles and the Off-Highway sector are tailor-made to make Diesel engines cleaner, higher performing and more economical. The company currently employs 1,700 associates.

About the Bosch Group

The Bosch Group is a leading global manufacturer of automotive and industrial technology, consumer goods, and building technology. In fiscal 2005, some 250,000 associates generated sales of 42 billion euros. Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering,” the Bosch Group today comprises a manufacturing, sales, and after-sales service network of some 270 subsidiaries and more than 12,000 service centers in over 140 countries.

The special ownership structure of the Bosch Group guarantees its financial independence and entrepreneurial freedom. It makes it possible for the company to undertake significant up-front investments in the safeguarding of its future, as well as to do justice to its social responsibility in a manner reflective of the spirit and will of its founder. 92 % of the shares of Robert Bosch GmbH are held by the charitable foundation Robert Bosch Stiftung. The entrepreneurial ownership functions are carried out by Robert Bosch Industrietreuhand KG.

About the VDA

The VDA nationally and internationally promotes the interests of the entire German automotive industry in all areas of the motor transport sector, for example in economic, transport and environmental policy, technical legislation, standardisation and quality assurance as well as research and education policy. It strongly supports the notion that individual mobility must remain affordable for everyone. The VDA organises, under its own auspices, the International Motor Show (IAA), the most important automobile exhibition world-wide. In addition, the VDA every year stages a large number of congresses and other events.

For more information on Bosch, please visit www.bosch.com.cn
For more information on the VDA, please visit www.vda.de