ZF Group Realigns for Future Competitiveness

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ZF Group is restructuring to enhance competitiveness and adapt to changes in the mobility sector, particularly in electromobility. The company will focus on strengthening its Commercial Vehicle Technology, Chassis Solutions, Industrial Technology, and Aftermarket divisions. The restructuring includes creating larger site networks in Germany and implementing leaner structures. This move will result in a gradual reduction of 11,000 to 14,000 employees in Germany by 2028.

Key Highlights:

  • Strategic Focus: Strengthening Commercial Vehicle Technology, Chassis Solutions, Industrial Technology, and Aftermarket divisions.
  • Site Consolidation: German locations to be organized into larger, more efficient site networks.
  • Workforce Reduction: 11,000 to 14,000 jobs in Germany to be cut by 2028 due to restructuring.
  • Electrified Powertrain Technologies: Restructuring focus on this division due to competition and weak demand for electric vehicles.
  • Future Competitiveness: Measures to enhance agility and respond to market changes.

Dr. Holger Klein, ZF CEO, emphasized the importance of positioning ZF for future competitiveness:

“Our corporate responsibility is to position ZF for the future and to further develop our locations in Germany in such a way that they are sustainably competitive and solidly positioned. We are aware that we also must make difficult but necessary decisions to achieve this. But we want to come up with the best possible solutions for everyone involved.”

The restructuring aligns with the “Transformation” collective agreement concluded in 2020, aiming to enhance the competitiveness and flexibility of ZF’s German locations. The plan includes evaluating individual locations and their long-term viability, with potential restructuring or closure if competitiveness cannot be improved.

Prof. Dr. Peter Laier, responsible for Production on the ZF Board of Management, stated:

“We want to consolidate the German locations and merge them into several location networks. The aim is to create an efficient production network on the one hand and an efficient organization of the research and development areas on the other.”

The company will also adjust capacities to match expected market demands, focusing on the Electrified Powertrain Technology division. The market for passenger car drives is highly competitive, with cost pressures and weak demand for electric vehicles impacting production.

Despite these challenges, ZF is committed to electromobility. CEO Klein explained:

“Despite the current market situation, one thing is clear – the future belongs to electromobility. We have made proactive investments here and will continue to invest heavily in this area.”

ZF will explore cooperation and partnerships to advance in the electric mobility sector. Klein emphasized the need for decisive action to adapt to the market environment and secure ZF’s future:

“The seriousness of the situation calls for decisive action to be able to adapt the company to the tougher market and competitive environment and to fulfill the foundation’s mission of securing the future.”

With these measures, ZF Group aims to enhance its competitiveness and solidify its position as a leading global supplier.

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