Bosch sees a possible easing of the global chip shortage in the second half of 2023 if demand dips under the weight of inflation, CEO Stefan Hartung said.

“We need stronger growth than before to reach our margin goals… we are still far below our target. Independently of economic circumstances, we must make progress on this,” Hartung said

Hartung said Germany’s government was interacting more than previous administrations with business leaders to get an overview of how supply chains in industry were faring.

“It is good that business is being listened to in this situation,” Hartung said.

Natural gas makes up only a small proportion of Bosch’s direct energy use, with a shortage likely to have a greater impact on the company’s suppliers.

Bosch announced on Wednesday a new partnership with U.S.-based IBM to use quantum computing to establish which materials could replace critical minerals for carbon-neutral powertrains.

“We will not be able to tackle climate change with today’s technology,” he added.

Bosch ranks No. 1 on theAutomotive News Europelist of the top 100 global suppliers, with worldwide parts sales to automakers of $49.14 billion in 2021.