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The ZF Group has implemented a significant restructuring of its divisions to improve competitiveness and adapt to changes in the mobility sector. This effort focuses on optimizing efficiency at its German locations, merging them and organizing them more effectively. The company is increasing its investments in the divisions of commercial vehicle technology, chassis solutions, industrial technology, and aftermarket.
Holger Klein, CEO of ZF, emphasized the importance of these strategic decisions, although he acknowledges that some will be difficult but necessary to ensure ZF's long-term sustainability and competitiveness. Part of the restructuring includes a particular focus on the Electrified Powertrain Technologies division, due to strong competition and cost pressure in the automotive transmission market.
Peter Laier, Head of Production on ZF's Board of Management, explained that the aim is to consolidate locations to create a more efficient production network and research and development organization. The large acquisitions of recent years, such as TRW in 2015 and Wabco in 2020, have expanded ZF's structure in Germany, which is now being transformed into a more sustainable and efficient network of locations.
Furthermore, ZF is strengthening its electric propulsion technology division, despite current market challenges, including low demand for electric vehicles and excess capacity in electric propulsion system production lines. Klein emphasizes that, despite these challenges, the future belongs to electromobility and ZF will continue to invest heavily in this area.
