The Diesel Scandal Haunts Bosch’s Hopes to Be a Global Giant

There’s a saying in Stuttgart, where Robert Bosch GmbH was founded in 1886: “Halt dei Gosch, i schaff beim Bosch.” It’s a dismissive retort—roughly “Shut up, I’m the one working for Bosch”—suggestive of the company’s culture of engineering brilliance, which has made it an icon of German industry. The world’s largest automotive supplier, with revenue of €73 billion ($86 billion) last year, Bosch is largely responsible for the development of everything from fuel injection and antilock brakes to onboard navigation systems and so-called clean diesel technology.

That prowess has convinced management that the company can transform itself into a broader global technology giant in line with the Googles of the world. Bosch poured €6.95 billion into research and development in 2016 in an effort to expand its focus to the internet of things. This year it reportedly won orders to supply motion sensors for the next iPhone. It will begin shipping a home robot called Kuri in December. And in June, Bosch announced it would build a €1 billion factory to make semiconductors for self-driving vehicles, the biggest single investment in the company’s history.