Peter Marks, president, chairman, and CEO, Robert Bosch LLC, and member of the Bosch Board of Management, gives his thoughts on the coming year and what he thinks the future holds for the North American automotive industry.

The North American International Auto Show begins this week. What is the major trend at this year’s show?

Peter Marks: Most important for me is that the energy has returned to the show. You can feel the excitement, and see it in the new products and technologies on display. Automakers continue to focus on fuel-efficiency, advanced safety technologies and electrification of the vehicle. The electric vehicle is at the forefront of new products from the automakers. In fact, the Chevrolet Volt was named 2011 North American Car of the Year. We are excited about electrification and are actively involved in preparing for it today. We feel that we need to put the technology – and hence consumer’ expectations – in the right perspective. There is no doubt the driving will be electrical in the future, but it will still need some time before the major challenges such as battery cost, battery weight, range and infrastructure are solved. As we continue to make improvements in the internal combustion engine, we are also advancing EV innovation.

What emerging technologies have the most growth potential in the coming years?

Peter Marks: Because of recent legislation and consumer demand, there is strong growth potential for advanced technologies for improved fuel efficiency. Our second generation gasoline direct injection technology, paired with turbocharging technology, enables both the reduction of CO2 emissions and fuel consumption, each by up to 18 percent. Additionally, our emission-reducing diesel engine technology includes high-pressure common rail and unit injector systems that increase fuel economy up to 30 percent, reduce carbon dioxide emissions by nearly 25 percent and increase torque by 50 percent as compared to a traditional port fuel injection engine.

Another example is our Start/Stop system that allows the vehicle to shut down when at a standstill, helping to increase fuel economy and reduce CO2 emissions. Depending on the circumstances, this product can result in approximately eight percent fuel economy savings; in heavily congested city driving savings can be as high as 15 percent.

Are automakers and consumers ready to spend more on advanced systems now?

Peter Marks: We are working with the automakers to bring advanced technologies to consumers as economically as possible, and we will continue to collaborate to bring affordable products to market. As the penetration rate of these technologies grows, the cost often times is reduced.

New vehicle sales grew about 10% to 11.6 million units last year, how do you think the industry will fare this year and next?

Peter Marks: The industry will continue its rebound. For 2011, we estimate the North American market will produce approximately 12 million vehicles with some upside potential. This represents modest growth from 2010 of just over two percent.

What factors driving the economic recovery concern you most?

Peter Marks: The greatest risks to the US automotive industry recovery are the US economy – specifically, unemployment – as well as increasing raw material prices.

With regard to the economy, there are a number of key indicators that are troublesome, including the high unemployment rate of 9.4 percent. Also housing starts, home sales and durable goods manufacturing have not rebounded as quickly as many industry watchers would have liked. 

In addition, we continue to monitor raw material prices, which we expect will be higher in 2011, especially for copper and platinum. To help mitigate price increases, we are bundling our purchasing activities where possible, to further leverage economies of scale. 

How will Bosch’s automotive business continue to grow in North America?

Peter Marks: We continue to see growth opportunities for the automotive technology sector in North America for 2011, primarily in fuel economy, safety and convenience. As we saw at this year’s auto show in Detroit, automakers continue to integrate these advanced technologies into their new product offerings, including gasoline direct injection with turbocharging, lane departure and blind spot detection.