Zero-emission vehicle sales remain strong in California
Aston Martin introduces new V12

Foxconn acquires 50% of the shares in ZF Chassis Modules GmbH; strategic partnership

ZF Friedrichshafen AG, one of the world's largest automotive suppliers, and Hon Hai Technology Group (Foxconn), the world’s largest electronics manufacturer, have completed the establishment of their joint venture in the field of passenger car chassis systems on 30 April.

The acquisition of a 50% stake in ZF Chassis Modules GmbH by Foxconn achieves a 50-50 partnership, which was agreed upon on 24 July 2023, and approved by regulators. The new joint venture, called ZF Foxconn Chassis Modules, is a central element in the future strategy of both shareholders.

Through the partnership, ZF Friedrichshafen AG secures resources for profitable growth, new customer access and additional development fields beyond the growing core market of axle system assembly. For Foxconn, the acquisition of a 50% stake in ZF Chassis Modules GmbH, with a total enterprise value of around €1 billion (around $1.1 billion), opens up new perspectives in the automotive sector. The joint venture will use core competencies and process expertise from existing business areas and jointly develop them for new markets.

The joint venture, which is headed by the two experienced ZF executives Eike Dorff (CEO) and Urs Rienhoff (CFO), strives to take advantage of expansion opportunities in the global market for axle system assembly. It aims to achieve the greatest possible adaptation to markets and contractual partners through continuous process optimization.

The enterprise value of the ZF division is around €1 billion (around $1.1 billion). ZF Foxconn Chassis Modules GmbH supplies global premium and volume manufacturers and is represented at 25 locations worldwide. The company employs approximately 3,800 people, almost 100 of whom are based in Germany. The division’s sales for 2023 amounted to roughly €4.3 billion ($4.7 billion).

Comments

The comments to this entry are closed.