December 4, 2012: Bosch has completed its acquisition of SPX Service Solutions, a US automotive diagnostics specialist. The agreement to purchase the company was signed in January this year. SPX Service Solutions develops, manufactures, and sells service equipment, repair-shop accessories, and software for the global automotive market.
Based in Canton, MI (USA), SPX Service Solutions generated sales of around US $ 920 million dollars (Rs 5,038 crore) in 2011. The diagnostics specialist employs around 2,800 associates in 17 countries, and has manufacturing sites in the US, Germany, France, and China. The purchase price is $1.15 billion (Rs 8,214 crore).
“In acquiring SPX Service Solutions, we will become a comprehensive sup¬plier of solutions in the diagnostics and repair business. In expanding our portfolio and extending our global presence, especially in the U.S., we are strengthening our position,” said Robert Hanser, the president of the Bosch Automotive Aftermarket division (pictured). “We will quickly merge our know-how and wealth of experience in this growing market. Our aim is to be¬come the world’s leading supplier of diagnostics solutions for all makes of vehicle.”
Impact on Bosch India Aftermarket operations
In India, the SPX Service Solutions acquisition will result in an enhanced product and service portfolio for the Automotive Aftermarket division along with a gateway to OES (Original Equipment Supplier) customers.
The augmented Bosch India portfolio will now include Technical Information and Services (TIS) offering services like repair manual generation, spare part manuals, labour time study for workshops. Other inclusions include Dealer Equipment Service (DES) and special tools and services (SST). With this augmentation, Bosch India is aiming at provision of complete solutions to OE (Original Equipment) workshop establishments.
Commenting on the development, S Muralidharan, vice-president (Automotive Aftermarket), Bosch Ltd, (pictured) said, “This acquisition opens many exciting new opportunities for Bosch India Automotive Aftermarket. We hope to enhance our position as part, equipment and service providers to complete solution providers in automobile service space. Above all, it gives us the chance to be closer to all categories of customers, thereby opening new avenues for diagnostic services in Indian market."
With automotive electronics becoming increasingly complex, the market for diagnostics solutions has a great deal of potential for growth. Till now, Bosch has catered to this market with products and services for diagnosing, servicing, and repairing passenger cars and commercial vehicles, with brand-independent workshops as its main customers.
SPX Service Solutions’ product portfolio comprises engineering services for automakers, as well as accessories and services for workshops. Combining these complementary areas of compe-tence will provide Bosch with a wider range of customers and a broader portfolio, and open up new market opportunities, especially in Asia Pacific and Europe.
SPX Service Solutions’ business activities will be integrated into the Bosch Automotive Aftermarket division, which generated sales of some 4.3 billion euros (Rs 30,749 crore) in 2011. As part of an integration project, a new ‘Automotive Ser-vice Solutions’ business unit will be set up with the former Diagnostics busi¬ness unit becoming part of this new business unit. The unit’s world headquarters will be in Canton, MI (USA). The European operations of Automotive Service Solutions will be managed from the Plochingen location in Germany.