ZF Invests in Mexican Chassis Facility

TOLUCA, Mexico – ZF has announced an investment of approximately €39.6 million through 2024 to expand its manufacturing capabilities in Toluca, Mexico.

ZF will establish a new manufacturing site which is expected to create an additional 150 jobs in the next two years and will be approximately 8,000 square meters larger than the existing plant it replaces.

The new plant will feature high-capacity assembly lines for just-in-sequence manufacturing of front and rear axle and corner module suspensions (which include brake components along with drive components) for passenger electric vehicles.

Construction will begin immediately and is scheduled to be completed in the third quarter of 2023. The company will begin hiring new employees during the third quarter, in anticipation of the start of production in the first quarter of 2024.

“As the automotive industry evolves to become more electrified, automated and connected, our manufacturing capabilities are evolving as well, and we are thrilled to establish this new, advanced manufacturing plant in Toluca. This investment demonstrates our commitment to our customers and employees in the region, as well as our commitment to advance Next Generation Mobility,” said Dale Chon, Vice President, Region North America, Car Chassis Technology, ZF Group.

Investment in Mexico

ZF’s investment in Toluca is the latest in a series of significant investments the company has made in Mexico in the past several years. In 2022, ZF invested over €46 million to increase production of control arms, stabilizer bar links and steering knuckles at a separate site in Toluca.

A global technology company that is developing and supplying systems for passenger cars, commercial vehicles and industrial technology to enable the next generation of mobility, ZF has 18 locations in the country, including 11 manufacturing facilities for chassis, steering, braking and other components, and three production sites dedicated to aftermarket. ZF opened a new Research & Development and Shared Services Center in Monterey in 2022 and is building a manufacturing plant on the same site to begin production of advanced electronics and safety devices in 2023.


Mike Geylin
Mike Geylin

Mike Geylin is the Editor-in-Chief at Hagman Media. Geylin has been in automotive communications for five decades working in all aspects of the industry from OEM to supplier to motorsports as well as reporting for both newspapers and magazines on the industry.