ZF and Foxconn Close on JV for Passenger Car Chassis Systems, Accelerating Strategic Innovation

*As of April 30, 2024, Foxconn acquires 50 percent of the shares in ZF Chassis Modules GmbH

*Strategic partnership strengthens mutual cooperation, business growth and expansion of the customer base 

*Partners explore further fields of innovation

ZF Friedrichshafen AG, one of the world’s largest automotive suppliers, and Hon Hai Technology Group (“Foxconn”, TWSE: 2317), the world’s largest electronics manufacturer, have completed the establishment of their joint venture in the field of passenger car chassis systems on April 30.

The acquisition of a 50-percent stake in ZF Chassis Modules GmbH by Foxconn achieves a 50-50 partnership, which was agreed upon on July 24, 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-percent 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.    

“ZF and Foxconn complement each other perfectly in this joint venture,” affirms Dr. Holger Klein, Chairman of the Board of Management of ZF Friedrichshafen AG. “It uniquely combines engineering competence, agility, know-how and customer orientation on a global scale. This secures our presence in today’s growth segments and paves the way to engage in future markets. Together, we will meet the needs of existing and new customers in an even more targeted manner and bring innovative technologies to series production.”    

“I am very pleased about the partnership that has been sealed today. Foxconn’s global network and supply chain management expertise will have a positive impact on the growth strategies of our two companies,” said Young Liu, Chairman and CEO of Foxconn. “We are very interested in opening up further partnership opportunities in the transportation and mobility sector with ZF Foxconn Chassis Modules.”   

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).

About ZF 
ZF is a global technology company supplying advanced mobility products and systems for passenger cars, commercial vehicles and industrial technology. Its comprehensive product range is primarily aimed at vehicle manufacturers, mobility providers and start-up companies in the fields of transportation and mobility. ZF electrifies a wide range of vehicle types. With its products, the company contributes to reducing emissions, protecting the climate as well as enhancing safe mobility. Alongside the automotive sector – passenger cars and commercial vehicles – ZF also serves market segments such as construction and agricultural machinery, wind power, marine propulsion, rail drives and test systems. With some 168,700 employees worldwide, ZF reported sales of €46.6 billion in fiscal 2023. The company operates 162 production locations in 31 countries.

Please find more information on: www.zf.com