Boysen Remains Optimistic Despite Revenue Decline, Driven by Renewed Focus on Combustion Engines and Battery Enclosures
Despite a significant downturn in revenue, Boysen, a leading exhaust specialist, maintains a positive outlook for the future, buoyed by a renewed focus on internal combustion engines and the expansion of its battery enclosure business.
Rebounding Revenue from Combustion Engines
The decision by an undisclosed German premium automaker to contract Boysen for the production of three model series will provide the company with an additional annual revenue stream of approximately €500 million starting in 2026, according to Rolf Geisel, Boysen’s Managing Director. This development has instilled confidence within the company, leading to projections of significant revenue growth and a return to the €3 billion revenue mark in 2027.
Diversifying into Battery Enclosures
In addition to its traditional combustion engine-related business, Boysen is actively pursuing new opportunities in the electric vehicle market. The company aims to ramp up its production of battery enclosures for EVs, responding to the growing demand for electric mobility.
Cautious Outlook Amidst Uncertainties
Despite its positive outlook, Boysen acknowledges that its projections are subject to uncertainties. The company is closely monitoring developments in the Chinese automotive market, the world’s largest, as well as the potential impact of U.S. President Donald Trump’s proposed tariffs on German automakers.
2019: Revenue Decline Amidst Industry Challenges
As anticipated, Boysen experienced a 21% decline in revenue in 2019, with overall revenue dropping to €2.64 billion. This downturn is attributed, in part, to a decline in the price of precious metals, which Boysen uses in its catalytic converters for exhaust purification. The company does not disclose its profit figures.
Global Workforce Expansion
Despite the revenue downturn, Boysen’s global workforce has grown slightly to around 5,300 employees. This growth has been primarily driven by the creation of jobs in Boysen’s overseas facilities in China and the United States, which have secured jobs for German workers.
Call for Policy Change in Germany
Managing Director Geisel criticized the current business environment in Germany, stating that the country’s economic landscape is no longer sustainable under the current framework. He emphasized the urgent need for substantial policy changes to ensure Germany’s future competitiveness.
Expansion into Battery Enclosure Production
Boysen has established two new facilities in Nagold, Germany, and Hungary, specifically dedicated to the production of battery enclosures. This move represents a significant diversification from the company’s core combustion engine exhaust technology business. Production of battery enclosures for customers Mercedes-AMG and BMW is expected to commence this year.
Conclusion
Boysen’s strategic shift towards a dual focus on combustion engines and battery enclosures positions the company to navigate the evolving automotive landscape. While the company remains cautious about potential market uncertainties, its positive outlook is supported by strong partnerships with automakers and a commitment to expanding into new growth areas. The success of Boysen’s battery enclosure business will be a key factor in determining the company’s future trajectory as the automotive industry transitions towards electric mobility.
