The president of Bosch in Spain and Portugal, Javier González Pareja, is on the front line of technological changes in the industry. His company has been manufacturing in Spain for almost 60 years and incorporating innovations into products such as automobiles and household appliances. For this reason, he has his own discourse when addressing the great challenge of decarbonization. It is necessary, as he says, not to neglect employment and take advantage of all technological potential. Everything contributes, including the arrival of Chinese manufacturers in Europe.
When they hear the name Bosch, many people think of home appliances. What other things do they do in Spain?
Our name is associated with products where the end consumer is behind it, such as dishwashers, refrigerators, washing machines or induction hobs, which by the way were invented in Zaragoza by BSH, a Bosch group company. We employ around 8,000 people in the country, with six plants, four of them for household appliances, in Zaragoza, Santander and Navarra. In mobility we have a factory in Madrid and another in Aranjuez where automobile sensors and components are made.
Do you also do something in Barcelona?
We have three locations for business process outsourcing services in Vigo, Barcelona and Madrid. An important service we provide for several European premium car manufacturers is eCall, in case of accidents. In Barcelona there is a Bosch call center for all of Europe. And we also have the Bosch Rexroth industrial automation part in Barcelona and San Sebastián.
What does it consist of?
It is the unit related to large engines of industrial action, such as those that make the Caja Mágica in Madrid open, the locks of the Panama Canal or the London Eye. We are also proud to have built the M-30 tunnel boring machine. In Spain we have more than 400 people dedicated to research and development, also in Barcelona, ??where we also acquired a software company in 22@ that has gone from five employees in 2017 to 50 currently.
How much does the business bill in Spain and how has it evolved?
We invoice about 2,400 million euros a year, of which more than 1,000 are in the automotive sector. Spain is the second largest automobile producing country in Europe and the ninth in the world. Since before Covid, global car production has fallen by 12%, but we sell between 1% and 2% more because cars now have more technological systems.
After the chip crisis and inflation, interest rate increases came. Was 2023 a year of financing problems?
Bosch is not listed on the stock exchange. The owner is a foundation, which makes us proud that more than 90% of the dividends go to social interest assets. Much financing is internal, so we have not suffered too much from the tightening of credit conditions.
Do you see a future for hydrogen?
The electric car continues its rise, but as the weight of the vehicle increases, the weight factor of the batteries is very limiting. In a 30 ton truck the batteries would weigh too much. It is one of the reasons why Bosch invests heavily in the hydrogen economy. And also in the generation of hydrogen itself through electrolysis. We cannot reveal it yet, but we have green hydrogen production projects in Spain.
Are there more decarbonization solutions?
It can be done with an electric or hydrogen car, but there is another option that unfortunately is not talked about as much, that of synthetic fuels. It would be very interesting to be able to use current combustion engines with biofuels that do not generate emissions. It would be a very efficient way of decarbonization. The fleet could be decarbonized in one fell swoop. We defend technological neutrality when it comes to decarbonizing.
Does the 2035 date for the end of the sale of combustion cars cause you concern?
Let’s say that it generates a need for adaptation. There are already manufacturers that have announced that they are not going to develop more combustion engines. What is going to be banned, combustion engine cars or cars that emit CO2? Because perhaps by that time there will already be synthetic fuels at a reasonable price that do not emit CO2.
Is the ecological transition choking the industry?
We say that the green transition has at least three dimensions. One is ecological, of course. Another is the social one: if it is done too quickly, how many jobs can be lost? And another is the economic one. A car with a certain technology can be prohibitive for a part of the population.
Is employment going to suffer?
If ten people are used to make a diesel engine and three or four in another gasoline engine, in the electric one it is only one. There is going to be a reduction in work in terms of direct labor. New ones will also be created. Therefore, one of the biggest challenges is upskilling and reskilling. That is the social component.
Have you already noticed that there are fewer jobs?
Of course. In 2021 and 2022 we had to close two factories that happened to be in Catalonia. In both it was due to technological change. Of course it already has influence on the job market.
Spain is also quite behind in sales of electric cars. Do you defend purchase incentives?
The stimuli are welcome, but above all we must encourage technical achievement, as happened with photovoltaic energy. The goal should be for production to be profitable enough so that it can operate without subsidies.
Chinese manufacturers seem willing to take a good part of the market.
They arrive with price models with the aim of being around 20,000 euros. The electric car is now for people with a certain economic level. Perhaps these price levels will help democratize the electric vehicle.
Will Chinese brands end up manufacturing cars in Spain?
If we want to at least aspire to maintain Spain’s position as the second largest car manufacturer in Europe, Chinese manufacturers have to come.
How are the Pertes going to reactivate the industry?
We are in several of the Perte, including that of the electric and connected vehicle. We are waiting to see what is going to happen with the semiconductor industry, if a manufacturer is going to establish itself here. A semiconductor factory in Spain would be more than welcome. In European funds, the intention is good. However, the bureaucracy to access them, as an Anglo-Saxon would say, is subject to improvement.