ZF-Foxconn JV Enhances Car Chassis

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ZF Friedrichshafen AG and Hon Hai Technology Group (“Foxconn”) solidified their partnership by establishing a joint venture focused on passenger car chassis systems. This collaborative effort resulted in Foxconn acquiring a 50% stake in ZF Chassis Modules GmbH, heralding a new era for both entities in their respective sectors.

Key Highlights

• Equitable Share Distribution: Foxconn secures 50% of ZF Chassis Modules GmbH, establishing a balanced partnership.
• Strategic Growth: Both companies anticipate enhanced business growth and expansion, tapping into new markets and innovation opportunities.
• Global Impact: The joint venture is poised to operate globally, leveraging mutual strengths in engineering, manufacturing, and customer relations.
• Financial Insights: The venture encompasses a total enterprise value of approximately €1 billion (about $1.1 billion), with a strong focus on profitability and market adaptation.

The joint venture, named ZF Foxconn Chassis Modules, serves as a cornerstone in the strategic future of both ZF Friedrichshafen AG and Foxconn. ZF benefits from augmented resources for growth and innovation, while Foxconn expands its footprint in the automotive industry, traditionally outside its core electronics manufacturing domain.

“ZF and Foxconn complement each other perfectly in this joint venture,” stated Dr. Holger Klein, Chairman of the Board of Management of ZF Friedrichshafen AG. He emphasized the unique blend of agility and customer focus that will propel the venture forward.

Young Liu, Chairman and CEO of Foxconn, expressed his enthusiasm about the partnership, highlighting the synergy between the two giants and the potential for further collaborations in transportation and mobility.

The leadership of the venture includes Eike Dorff (CEO) and Urs Rienhoff (CFO), both seasoned ZF executives, who are expected to steer the joint venture towards capturing growth in the global market, particularly in axle system assembly. The joint entity now serves major automotive manufacturers worldwide, with a workforce of approximately 3,800 employees, and boasts a significant sales revenue, reflecting its major role in the industry sectors it serves.