The Bosch plant in Modugno is an important symbol for Italian industry, especially for the automotive sector. Bosh, in Modugno, has been the “backbone” of the local economy for many years, employing thousands of people. The factory specializes in the production of components for internal combustion engines, especially injection systems. Like many companies in the automotive sector, Bosch is facing the challenge of the transition to sustainability and electric mobility. This transition brought about major changes in the factory.
Bosch, the origin of the problem and the implications of the situation
The crisis at the Bosch plant in Modugno is strongly linked to the green transition that also involves the automotive industry. The growing demand for electric vehicles and new emissions standards have reduced the production of internal combustion engines and related components produced at the Bosch plant in Modugno putting the entire automotive sector in crisis. This technological transition has inevitably led to a state of crisis with a forced restructuring process of the company.
The situation of the Bosch plant in Modugno in recent years it has been pervaded by a series of eventsthe first is the one that concerned theredundancy of employees. To be fair, the company has repeatedly stated that it wants to reduce the number of employees, which has caused concern among workers and local businesses. Several negotiations have also been started between unions and the company to reduce the social consequences of these adjustments, and to find alternative solutions.
(Above, the Bosch production site in Modugno, Puglia, seen from above)
The Apulian region and local industries have proposed changes and industrial training programs to support the factory and try to protect jobs. In addition, workers have organized various demonstrations and strikes to protect their rights and claim the future of the company.
What will happen to the Bosch plant in Modugno
As of today, the Bosch plant in Modugno is still evolving. Despite the problems that the company has had to (and continues to) go through, the same company has reaffirmed its commitment to maintaining a large area in Italy and to reconvert the factory to new productssuch as electric bicycles.
In any case, Bosch does not plan to close its Modugno factory. The company’s main goal is to find new products and a new business strategy to include in its global renewal plan. This was stated by Bosch Italy’s general manager, Renato Lastaria, who stated the following during the press conference held in Milan:
“We need to find a new industrial identity for Bari, ensuring the site a medium and long-term future. The strategy is based on the retraining of personnel for internal and external needs. But the new products require fewer workers, there will be a voluntary and incentivized adjustment of personnel“.
Bosh, staff reduction inevitable
There will be a real reduction in staff at the entire Modugno plant, as foreseen in the contract signed between the company and the unions last year. Specifically, there will be 700 exitsout of a total of 1,700 employees in 5 years.
The confirmation that the plant will not close, despite the reduction in staff, follows the protests of March 29 by the unions – when they demonstrated in via Gentile, with a strike in front of the headquarters of the Puglia Region -. At the time of the facts there were many hesitations regarding the industrial plan, presented almost two years earlier (July 2022), in order to find new products beyond the automotive sector.
Subsequently, a request was made to set up a crisis table as soon as possible at the Ministry of Business and Made in Italyso as to find a concrete solution that can save the 1,600 jobs still at risk today.
The words of the general secretary of Fiom Cgil of Bari
Ciro D’Alesiogeneral secretary of Fiom Cgil of Bari, announced these exact words:
“We already know that the plant will not be closed, there is an agreement with the company until 2027 signed a year ago and which provides that no layoffs can be made. What Bosch must tell us is how they intend to relaunch production, which products will be put into the field for the Bari plant. On the subject for the moment zero answers“.
The words of the CFO of the Bosch group
Markus Forschner, CFO of the Bosch Group, explained during the conference call on the 2023 financial results:
“All necessary staff adjustments will take place without layoffs and only after consultation with the social partners. Reducing costs benefits profitability and ensures economic sustainability“.
Bosh, hypothesis on the future of the Modugno plant
The future of the Bosch plant in Modugno depends on various factors, including:
- Automotive market development: the speed with which the automotive sector evolves towards electric mobility will have a direct impact on the plant’s operations.
- Bosch’s strategic decisions: the company must clearly define its investment plans and the new products to be activated in Modugno.
- Institutional support: The support of the Puglia Region and local institutions will be essential to support the transition of the factory and promote the recovery of workers.
- Negotiating capacity of trade unions: Workers’ representatives have a key role in protecting workers’ rights, and in trying to ensure the best possible conditions.
Read also other articles that talk about the crisis in the automotive sector
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