ZF Group Announces Strategic Realignment to Boost Competitiveness and Efficiency

ZF Group Announces Strategic Realignment to Boost Competitiveness and Efficiency

(IN BRIEF) ZF Friedrichshafen AG is realigning its structures to enhance competitiveness, focusing on Commercial Vehicle Technology, Chassis Solutions, Industrial Technology, and Aftermarket divisions. The restructuring will consolidate German locations, resulting in a gradual reduction of 11,000 to 14,000 jobs by 2028. The company aims to manage this reduction responsibly while increasing automation and digitalization. The Electrified Powertrain Technology division will undergo improvements to adapt to market conditions. Despite challenges, ZF remains committed to electromobility, seeking cooperation and partnerships to advance in this area.

(PRESS RELEASE) FRIEDRICHSHAFEN, 26-Jul-2024 — /EuropaWire/ — ZF Friedrichshafen AG, headquartered in Friedrichshafen, Germany, has unveiled a strategic realignment aimed at enhancing competitiveness and adapting to the evolving mobility sector, particularly focusing on electromobility. This realignment, under the guiding principle of “Strengthening strengths,” will see increased investments in the company’s Commercial Vehicle Technology, Chassis Solutions, Industrial Technology, and Aftermarket divisions.

A significant part of this strategy involves consolidating its German locations into larger, more efficient site networks. This restructuring is expected to result in a gradual reduction of 11,000 to 14,000 jobs in Germany by 2028, with a particular focus on the Electrified Powertrain Technologies division due to market competition, cost pressures, and low demand for electric vehicles.

Dr. Holger Klein, CEO of ZF, emphasized the importance of positioning the company for future success while maintaining a competitive edge. He acknowledged the necessity of making tough decisions to achieve these goals, aiming to find the best possible solutions for all stakeholders.

Prof. Dr. Peter Laier, ZF Board Member responsible for Production, noted that the restructuring will create an efficient production network and streamlined research and development operations. The company’s recent acquisitions of TRW in 2015 and Wabco in 2020 have expanded its location structure, necessitating a transformation into a more sustainable and leaner network.

The planned reduction in the workforce will be managed responsibly, leveraging the demographic structure of the workforce and natural employee turnover. Options such as partial retirement and severance programs will be considered to minimize the impact on employees. Additionally, increased automation and digitalization will enhance competitiveness.

The Electrified Powertrain Technology division will undergo a thorough review to improve workflows, processes, and structures. Despite the current challenges, ZF remains committed to electromobility and will continue to invest in this area. The company is open to cooperation and partnerships to advance electric mobility further.

Dr. Klein stressed the urgency of adapting to the tougher market environment to secure the company’s future and maintain its position as a leading global supplier. The measures being implemented are designed to strengthen ZF’s core and make the company more agile in responding to rapid market changes.

Media Contacts:

Florian Laudan
Senior Vice President Global Corporate and Marketing Communications+49 151 200 00276
florian.laudan@zf.com

Dr. Jochen Mayer
Corporate News Relations, Finance and Labor Relations+49 7541 77-7028
jochen.mayer@zf.com

SOURCE: ZF Friedrichshafen AG