“The success of the auto industry has generated two key challenges – dependence on oil imports, and global warming,” Dr. Bohr said. “The growing demand for energy has become more urgent over the past years … across the world global warming has become an issue of undeniable urgency. At Bosch, we see these mega trends as challenges that require solutions. We believe technological innovation will provide solutions.”

Dr. Bohr discussed specific Bosch initiatives and activities that highlight the company’s focus on innovation.  For example, Bosch spends more than $4.2 billion USD each year on R&D activities which provides a pipeline of solutions. In 2006 alone, Bosch associates applied for more than 3,000 patents worldwide, almost 40 percent were for technologies and processes targeted at protecting the environment.

And while innovation is flourishing in established markets such as the United States and Europe, Bosch also is focused on bringing environmentally conscious technologies to emerging markets. In India, Bosch has developed fuel-saving gasoline direction injection and diesel injection systems for the $2,500 USD car that India’s Tata Motors is building. In China, this year Bosch will sell 100,000 fuel-saving common rail diesel systems, with that number expected to grow to 1.2 million systems by 2010 when China institutes stricter emission standards.

“This is no accident,” Dr. Bohr said. “We have chosen to grow in a specific way; in alignment with a very specific philosophy. ‘3-S’ stands for the German ‘sich, sauber, sparsam’ – ‘safe, clean and economical.’ Bosch developed this after the first world energy crisis in 1973.”

While innovation is critical, Dr. Bohr also called for world’s automakers, particularly U.S.-based OEMs, to strive for a heightened level of collaboration to develop solutions. The three key areas that suppliers and OEMs must find ways to cooperate:

• Investment in innovation
• Standardization and
• Marketing new technologies to consumers

Dr. Bohr highlighted the sometimes restrictive agreements and combative relationships that U.S. automakers have had with suppliers as a particular area that needs improvement.

“Today we are faced with more challenges than ever. The waters we are rowing in are full of hidden rocks and waterspouts. Some of these obstacles only affect the row boat we’re in. But, some affect all participants of the regatta,” Dr. Bohr said. “We, as an industry, have to find clever solutions. Including a way of working together that will stimulate investment in innovation, standardization of products, and joint marketing of innovative new products.”