Taiwan’s Foxconn will acquire a 50% stake in the ZF Group (ZFF.UL) axle system assembly unit, creating a joint venture aimed at growing automotive and supply chain opportunities, the companies said on Monday. The deal, which values ZFs Chassis Modules GmbH at 1 billion euros ($1.11 billion), will allow the companies to expand the range of product offerings in the internal combustion engine and electric vehicle space, they said.
The two partners will develop, manufacture and distribute products for automotive driveline systems, especially for front-wheel and rear-wheel drives of passenger cars, trucks, and buses. ZFs global network of plants and development sites will be critical to this. The companies will also collaborate on research and development, focusing on the four mobility systems technology areas of vehicle motion control, integrated safety, autonomous driving, and electric drives.
In electromobility, ZF will focus on developing hybrid and electric motors for different vehicle types – from hybrid and electric axle drives for electric passenger cars to electric central drives for commercial vehicles. These components help reduce CO2 emissions while allowing maximum driving comfort and high power levels.
ZF is the market leader in several axle systems for electric vehicles, such as the rear-wheel-drive e-axle for electric SUVs and the front-wheel-drive e-axle with integrated drive units for compact electric vehicles. The company also offers an electric central drive for commercial vehicles based on its CeTrax 2 platform, which can replace the engine, transmission, and conventional axle in CV applications, enabling OEMs to completely rethink the vehicle design and offer new, low-emission drive solutions for their customers.
Among the main obstacles that prevent drivers from switching to an electric car are the significantly higher acquisition costs and the limited range compared to drive systems powered by internal combustion engines. To address these issues, ZFs developers are working on efficient electric motors and energy management systems that optimistically use the available energy, from charging to recuperation during braking.
The partnership with Foxconn will also support the expansion of ZFs activities in China, where the company has been active for decades. ZF established its first production plant in Shenyang in 1981 and has since set up additional facilities in Shanghai, where it is headquartered today. ZF has six worldwide R&D centers to ensure the company can quickly respond to local customer requirements.
The joint venture will have a share capital of 750 million euros and is expected to become operational within six to nine months after signing, subject to approval by relevant regulatory bodies. ZF said the joint venture was part of its strategy to grow specific business areas beyond current limits with external partners’ support and to increase sales in Asia.
