The Russian state entity NAMI said on Wednesday it had acquired a 100% stake in a factory producing anti-lock brakes and other systems for cars that was formerly owned by German technology group Robert Bosch. The company did not disclose a price for the deal, but it is the latest in a series of assets that has seen Russia snap up factories from global carmakers that left the country over Russia’s invasion of Ukraine.
NAMI, Russia’s Central Automobile and Engine Research and Development Institute, has been snapping up assets that were previously run by carmakers Renault (RENA.PA), Nissan (7201.T) and Toyota (TMK.TO). The institute, which has been founded over a century ago, is known as one of the world’s leading automotive research centers and is responsible for designing numerous vehicles and engines, including President Vladimir Putin’s Aurus Senat limousine.
Nissan has kept its production on hold in the country since March, while Renault decided to suspend operations in April and take a 2.2 billion euro non-cash writedown on the impact of sanctions that were imposed on it by the West over Russia’s actions in Ukraine. Toyota has since been forced to halt production, and the Japanese company has said it will shutter its St Petersburg plant in October.
Bosch, which does not operate a factory in Russia, said its business there had improved last year despite the uncertainty. Its industrial equipment division saw sales rise, while its consumer electronics division sold a record number of washing machines and vacuum cleaners. The firm’s contact center in Kazan continued to provide high quality customer support by conducting more than 860,000 telephone consultations and resolving about 206,000 technical requests.
The firm’s automotive components division also had a strong year, with the eXtra loyalty program for its service stations and car parts stores continuing to grow. The company’s mobile diagnostic tools were also popular among car owners as they allow them to check their vehicle’s condition from anywhere with an internet connection.
Other highlights included the work of specialists at its research center in Moscow, who used machine learning to develop noise vibration recognition and cavitation erosion forecasting for injectors. In addition, the unit worked to create a system for serialization and aggregation of products for pharmaceutical producers.
As the year ends, Bosch has a clear strategy for future growth. The company is working to synchronize production build-ups around the world, while taking into account geopolitical risks and the need for high levels of supply chain reliability. It is also focusing on collaboration with universities and scientific and technological institutions, including the Skolkovo Innovation Center, on artificial intelligence-based technologies. The aim is that within ten years all of the company’s products will either contain built-in AI or be created with it. The company has already signed cooperation agreements in the field of applied mathematics and information security, among others.
