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Bosch Looks to Sell Parts of its Brake Business

( AftermarketNews learned that Bosch may be looking to sell off parts of its North American brake business.


Becky McDonald, a spokeswoman for the company, confirmed the report with an official statement from Bosch.
“Bosch has begun reviewing alternatives for its North American Foundation Brake Business, including discussions with a prospective buyer,” the statement said. ”Included among these alternatives is the possible sale of certain Bosch U.S. assets. No decisions have been made at this time and there can be no assurance that any decision will result in an agreement between the companies.”

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“Foundation brakes” includes the caliper, rotor, brake pads and attached mechanical components used to stop the vehicle. While the components are simple, the cost to engineer a new vehicle’s foundation brake system can be extremely expensive and less profitable when compared to high-value components like the ABS system.

Bosch’s North American brake division consists of seven manufacturing locations in North America, two headquarters locations (engineering, sales and administrative operations) and a proving ground. The North American Foundation Brake business is part of Bosch’s overall North American brake division.

The statements from Bosch indicate the possible transaction will involve just the North American OE operations and not the aftermarket division. (Tire Review/Akron)

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