New business 1960–1989
The 1960s through to the 1980s were marked by transformation at Bosch, turning it into a diversified group with self-managed divisions, a global company, and the market leader in automotive electronics.
New structure — divisions are formed
Between 1950 and 1960, the number of Bosch associates increased from 15,000 to 70,000. The centralised structure of a medium-sized enterprise no longer sufficed, and so during the 1960s the business fields gradually became more independent, starting with the Power Tools division. During this time of economic boom and full employment, Bosch made acquisitions in other sectors and thousands of associates were retrained to manufacture automotive electrics.
From hydraulics to packaging
Even if the automotive industry in the most important market for Bosch at that time, western Europe, was booming, the diversification drive into other sectors was still important. After moving into mobile hydraulics, medical electronics, and radio technology during the 1950s, Bosch bought into a packaging machinery company in 1963 and expanded its activities with further acquisitions to form the Packaging Technology division.
The founder’s legacy — the Robert Bosch Stiftung
Research, development, and acquisition — with the power of innovation
Bosch pooled its research and development resources in a new research centre in 1968. This combined effort was needed to germinate the ideas that Bosch later turned into the innovative products that gave it the competitive edge. From the mid-1960s, the company’s own research institutes also focused on special projects, such as integrated circuits.
Semiconductors and the computerised car — electronics at Bosch
The determination of the researchers and managers to turn electronics into a linchpin of the company started to pay off from the 1970s, and that originally uncharted territory has shaped the entire company’s success to this day. A prime example of this is the ABS antilock braking system launched in 1978, which Bosch turned into a technical standard in automotive engineering thanks to its expertise in digital electronics.
Thinking global — a new start in the U.S. and Asia
In the United States, the world’s largest economy, it took until 1983 for Bosch to get the full usage rights reinstated for its own brand. This freed the way for the company to regain its former sales success. In Asia, Bosch established its presence in a special way. It manufactured high-quality goods, such as photographic and video technology, more cost-efficiently in countries such as Malaysia. It also formed joint ventures in key markets such as Japan. Bosch started manufacturing electronic gasoline injection there in 1973 and the ABS antilock braking system in 1984.
Telecommunications — a new focus
At the start of the 1980s, Bosch ventured into telecommunications and started constructing technology for space satellites and cell phones and implementing public and private telecommunications networks. After two successful decades of this sector generating up to 25 percent of the company’s sales, unfavorable developments prompted Bosch to withdraw from several segments. The Security Systems division continued in business and remains successful to this day.