Brose reveling in fierce contest for market share

Running a company is like doing a sport, said Philipp Schramm, CEO and CFO of Brose, one of the five largest family-owned automotive suppliers in the world.

The German company develops and manufactures systems for vehicle doors, liftgates and seats. It also produces electric motors for various applications such as steering, thermal management or drives for e-bikes and e-scooters.

"If you do sports, we need to come to a point where we are more agile, more flexible, and we have to get rid of our belly fat," said Schramm in an interview with China Daily.

This is especially true with the automotive industry charging forward with a host of new concepts and technologies and consequently intense competition.

But Schramm likes competition. He, with a good command of the Chinese language, even says juan, a Chinese word which sometimes can refer to undue competition, is the right way to move forward.

"This industry is a war. We are fighting the war for the best products, best technology and best customer experience, and that is making the difference," he said.

The mindset may have something to do with the Chinese vehicle market. Schramm explained that Chinese car manufacturers expect the same quality like everyone else, but they expect totally different agility and flexibility.

"Therefore, we need to become to some extent, more Chinese, but doing it smart, and they'll see huge benefits for a company like us. We should be open to the change to embrace it and not reject it," he said.

Brose started its activities in the Chinese market in 1996 and has been growing ever since. It employs around 4,200 people in China, which generated a fifth of Brose's total turnover in 2023.

"China has always been a power for us for growth, but not just for growth in regard to producing, but also getting impulses and taking the next step," said Schramm.

Brose has 10 manufacturing facilities in the country. Schramm said the company has invested more than 790 million euros ($859 million) in China in last 10 years and the figure is continuously growing.

"And I feel that we are becoming a Chinese company with German heritage, and a global footprint," he said.

In China, Brose has achieved a localization rate of over 85 percent in terms of production equipment through cooperation with local suppliers, significantly reducing manufacturing expenses.

Also, Brose's development teams in China work closely with global engineering resources, shortening the product development life cycle and adapting quickly to project adjustments.

Schramm said Brose can also work with Chinese carmakers that are expanding their presence overseas.

"With our heritage, with our global footprint, we can offer Chinese manufacturers opportunities (as they are) going abroad, because we have sites everywhere.

"Also, with our knowledge of the different markets, we can provide them with the insight, the regulatory requirements others are facing in these markets to be successful," he said.