Charles R. Goulding and Preeti Sulibhavi explain how ABB’s robotics spinoff could reshape automotive manufacturing through 3D printing, AI integration, and powerful R&D tax advantages.
In a move that has surprised industry observers, Swiss industrial conglomerate ABB announced plans to spin off its robotics division, the world’s second-largest industrial robot manufacturer after Japan’s FANUC. The decision, slated for execution in the second quarter of 2026, marks ABB’s most significant structural change since selling its power grids business to Hitachi in 2018. The robotics unit generated US$2.3 billion in 2024, about 7% of ABB’s total sales, but its 12.1% profit margin lagged behind the group’s 18.1%, impacted by weak demand in the automotive sector.
ABB’s robotics division has long been recognized for its strength in automotive applications, providing intelligent automation solutions to help its global customer base achieve improved productivity, flexibility, and simplicity. The company offers a broad range of robotics platforms, including Autonomous Mobile Robots (AMRs), software, and AI, combined with proven domain expertise.
The automotive sector, a traditional stronghold for ABB, is undergoing significant transformations, with major players like Hyundai and Honda announcing plant expansions. Hyundai, for instance, has been investing in advanced manufacturing technologies to enhance production efficiency. Similarly, Honda’s expansion in the U.S. market underscores the growing demand for innovative manufacturing solutions. If an industry buyer with automotive strengths emerges, it could become a major force in the automotive robotics area, capitalizing on ABB’s established expertise.
Japan has a leading presence in the automotive robotics sector, with companies like Nikon making significant strides in 3D printed automotive components. Nikon’s collaboration with Honda in the U.S. expansion has been particularly noteworthy, as they have been integrating advanced metal additive manufacturing into Honda’s production lines, enabling the creation of complex components with improved efficiency.
3D printing has become increasingly integral to automotive manufacturing, offering benefits such as rapid prototyping, customization, and the production of complex geometries. Here are three recent and relevant examples involving Hyundai, Honda, and Kia:
- Honda’s Use of LPBF Technology: Honda has employed Laser Powder Bed Fusion (LPBF) technology to fabricate parts with complex geometries and reduced weight. Notable applications include pistons and turbine housings for their Formula 1 endeavors, leading to components that are both lightweight and capable of withstanding high combustion pressures.
- Honda Access’s 3D Printed Prototypes: Honda Access Company Ltd. has incorporated Stratasys 3D printing into the product design process, allowing for accurate fit and functional testing. This approach has enabled rapid design cycles and the creation of customized accessories for Honda vehicles, enhancing customer satisfaction.
- Nikon’s Collaboration with Honda: In a landmark collaboration, Honda partnered with Nikon to enhance its 3D printing capabilities. This alliance aims to integrate advanced metal additive manufacturing into Honda’s production lines, enabling the creation of complex components with improved efficiency.
The table below presents the research and development (R&D) expenses for ABB in recent years.
These developments underscore the transformative impact of 3D printing in the automotive industry, offering new avenues for innovation and efficiency. As ABB prepares to spin off its robotics division, the integration of such advanced manufacturing technologies will likely play a pivotal role in shaping the future of automotive production.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
ABB’s decision to spin off its robotics division reflects the dynamic nature of the manufacturing industry, where technological advancements and market demands continually reshape business strategies. The company’s established expertise in automotive robotics, combined with the growing adoption of 3D printing technologies by major automotive players, positions the new entity to capitalize on emerging opportunities and drive innovation in the sector.
