The Brose Group, which is one of the largest family owned companies making vehicle components has revealed ambitious investment plans to overcome the recent sluggish growth in the automotive sector.
The company recently approved a plan that involves investing up to 2 billion euros by 2021. The company’s board expects the negative trend to stabilize shortly and growth to resume its upward trend over the long term. Brose has chosen to participate actively in startups, foster innovation and venture into new areas in the business as part of its strategy to get through this sluggish phase.
The company has an e-bike division that is based in Berlin and this division will also be strengthening its activities, especially in the areas of development capacities and dealer service. The amount planned for investment will be used partly for development expenditure related to future technologies as well as for partnerships and acquisitions geared towards expanding the company’s market position. The Brose Group’s turnover fell by two percent to 6.2 billion euros in 2019, but this was partly due to the high costs associated with the development of new products, which had a negative impact on the earnings
Brose has also revealed that it would be spending more heavily on recruitment of staff IT, software and electronics, but would cut back on expenditure related to sponsorship, especially in the area of sports marketing.
Commenting on the company’s plans for the future, Michael Stoschek, chairman of the Brose Group said, “I am very confident that the newly appointed executive management board will tackle the many different and complex tasks with great élan. And if in doing so we become leaner, faster and more innovative, we will have everything we need to be stronger for a successful future.”
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