Bosch warns of rising cost pressure in 2026, delays margin target

FRANKFURT, Jan 30 (Reuters) - Bosch, the ⁠world's largest car ⁠parts ‍supplier, on Friday warned of another tough year in 2026 and postponed a 7% margin target as it expects no let-up in cost ‍and competitive pressure in a sector hit by tariffs worldwide.

Bosch last ​year announced a further 13,000 job cuts, or around 3% of its total workforce, to protect ​margins and ensure it remains competitive in light of import tariffs and price declines that have hurt its business.

CEO Stefan Hartung told Reuters last year that 2026 would be tough, warning ​the automotive industry would "remain a highly competitive sector where there will be a fight over every cent".

As a result, the company said it now expected ​to begin achieving its 7% profit margin in 2027 at the earliest, having previously forecast to hit it ‌this year.

"There are many indications of a slight slowdown in global economic growth," Bosch finance chief Markus Forschner said in a statement. "Competitive ​and price pressure are likely to increase ⁠further and the increased tariffs will have their full impact for the first time."

In 2025, sales rose 0.8% to 91 billion ‌euros ($108 billion), while the operating margin fell to 1.9% from 3.5%, the company said, as it released preliminary results for the past year.

The German group and the wider auto sector last ‌year were also rattled by a shortage of chips made by Dutch company Nexperia, some of ‌which cost less than a cent, according to Bosch.

The dispute at Nexperia erupted last year when the Dutch government seized control of the company, citing fears it was transferring operations and ‍intellectual property to China. The government later revoked the move, but a court fight continues.

Hartung said on Friday that the ⁠crisis is not over. "We hope that definitive solutions will be in place in six months," the CEO said, adding that sourcing chips from other suppliers is extremely expensive.

($1 = 0.8404 euros)

(Reporting by Christoph Steitz, additional reporting by Ilona Wissenbach in Stuttgart and Thomas Seythal in Berlin, editing by Kirsten Donovan)

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