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with a loss of 1.2 billion euros in the previous year. Apart<br />

from cutbacks and growth in sales, important factors in<br />

this marked improvement included improvements in a<br />

number of areas requiring restructuring measures. These<br />

operational improvements more than offset the effects of<br />

the significantly higher raw materials prices that accompanied<br />

the upturn.<br />

Renewed upward trend in headcount<br />

In the course of the year, the number of associates worldwide<br />

rose by 12,800 – or nearly 5 percent – to 283,500. This<br />

growth was centered primarily on Asia Pacific, where more<br />

than 63,000 associates now work for the <strong>Bosch</strong> Group.<br />

Headcount in China increased by some 5,000 to 26,200,<br />

while in India it rose by 2,200 to its current total of 20,800.<br />

However, headcount also grew in other regions. In Germany,<br />

it rose to 113,600, compared with 111,700 one year<br />

previously.<br />

Enhancing capacity to innovate<br />

In 2010, having also maintained a high level of spending<br />

on research and development throughout the economic<br />

crisis, we increased R&D expenditure by some 6 percent,<br />

to 3.8 billion euros. At the end of the year, approximately<br />

34,000 associates were working in this area worldwide.<br />

We further strengthened our global research network<br />

by opening an additional research center in Singapore,<br />

with operations in Shanghai and Tokyo. And in order to<br />

pool our research, advance engineering, and process<br />

engineering activities, we also acquired a substantial area<br />

of land close to Stuttgart.

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