ZF Friedrichshafen AG, one of the world’s largest automotive suppliers, has entered into a joint venture with Hon Hai Technology Group (“Foxconn”), the world’s largest electronics manufacturer, for work in the field of passenger car chassis systems.
The acquisition of a 50% stake in ZF Chassis Modules GmbH by Foxconn has created a 50-50 partnership, which was agreed on July 24, 2023, and approved by regulators. Both shareholders say the joint venture, called ZF Foxconn Chassis Modules, is a central element in their future strategy.
Benefits of the partnership for ZF Friedrichshafen AG include securing resources for profitable growth, and access to new customers 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 US$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,” stated 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.”
The joint venture, which is headed by the ZF executives Eike Dorff (CEO) and Urs Rienhoff (CFO), will strive 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 optimisation.
“Foxconn’s global network and supply chain management expertise will have a positive impact on the growth strategies of our two companies,” added 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.”
ZF Foxconn Chassis Modules GmbH is represented at 25 locations worldwide and 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 (US$4.7 billion).
