Bosch plans to separate its Mobility business in Germany and three central service units from Robert Bosch GmbH into four independent legal entities, according to Quartz. The restructuring is scheduled to take effect on August 1, 2027, with implementation expected to be completed before the end of that year.
The Mobility business, along with Bosch Digital, Global Business Services and Global Real Estate, will become wholly owned limited liability company subsidiaries within the Bosch Group. The move follows a structure already used by Bosch's Industrial Technology, Consumer Goods, and Energy and Building Technology businesses, which operate as separate subsidiaries.
According to Reuters, around 62,500 employees based in Germany, most of them working in Mobility, are expected to transfer to the new entities. Robert Bosch GmbH will focus on its role as the group's headquarters and central research organisation, with a workforce of more than 3,000.
Bosch Mobility Business Faces Profitability Pressures
Mobility is Bosch's largest business sector, generating €55.8 billion in sales in 2025. However, its operating margin declined to 1.8 percent from 3.8 percent a year earlier, according to Bloomberg. Bosch has indicated that it needs to address an annual cost shortfall of around €2.5 billion to achieve its profitability target.
The company announced plans last year to cut approximately 13,000 jobs, with most of the reductions expected to affect its Mobility business, Bloomberg reported. Mobility sales declined to €27.8 billion in the first half of 2026, while Bosch has warned that challenging conditions in the automotive market are likely to persist.
Restructuring Intended to Increase Operational Flexibility
Bosch intends the new structure to help its automotive components business respond more quickly to market changes and customer requirements. The restructuring could also create opportunities for strategic partnerships and new business models, Reuters reported.
The company has ruled out an initial public offering or sale of its Mobility business, as well as a merger with another automotive supplier, according to Bloomberg.
Bosch chairman Christian Fischer said the company was operating in an increasingly challenging market environment, with new competitors, particularly from Asia, adding to competitive pressures. The restructuring is intended to give the business greater scope to adapt to changing market conditions.