ZF Friedrichshafen Faces Job Cuts and Powertrain Division Crisis
ZF Friedrichshafen, a significant automotive supplier, is grappling with challenges in its powertrain division due to delayed e-mobility rollout and high costs. The company's three largest customers - Volkswagen, BMW, and Stellantis - are also struggling, impacting ZF's performance. Around 50,700 German employees are concerned about their jobs, with the company planning to cut up to 14,000 positions by 2028.
ZF's powertrain division is facing issues with low margins and high costs, leading the company to explore strategic partnerships and potential sales. The division's problems are exacerbated by the German automobile industry's difficulties, including a 30% global decline in car and light commercial vehicle production since 2018. ZF's net debt stands at around 10.5 billion euros, with high interest payments hindering investment in future products. The company made a loss of 195 million euros in the first half of the year and expects a full-year loss. To address these challenges, ZF plans to restructure its powertrain division and has begun discussions with potential partners.
Mathias Miedreich is set to take over as the new CEO this Wednesday, succeeding Holger Klein. The company's job cuts, totaling up to 14,000 by 2028, aim to secure the company's long-term competitiveness.
ZF Friedrichshafen is navigating a tough period due to industry-wide challenges and internal issues in its powertrain division. The company is exploring strategic partnerships and considering a sale of the troubled division, with restructuring and job cuts planned to ensure its future competitiveness. The new CEO, Mathias Miedreich, will face these challenges as he takes the helm this week.
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