ZF Friedrichshafen AG, a leading global automotive supplier, and Hon Hai Technology Group (Foxconn), the largest electronics manufacturer worldwide, have officially completed their joint venture, establishing a new entity known as ZF Foxconn Chassis Modules.
The joint venture officially commenced on April 30, with Foxconn acquiring a 50% stake in ZF Chassis Modules GmbH. The deal values the enterprise at approximately €1 billion (around $1.1 billion), marking a significant investment into the future of automotive chassis systems.
ZF aims to leverage this partnership to secure profitable growth avenues, gain new customer access, and explore additional development fields beyond its core market of axle system assembly. For Foxconn, this move signifies a strategic expansion into the automotive sector, complementing its extensive expertise in electronics manufacturing.
Dr Holger Klein, Chairman of the Board of Management at ZF Friedrichshafen AG, said, 'ZF and Foxconn complement each other perfectly in this joint venture, combining engineering competence, agility, know-how, and customer orientation on a global scale. This partnership not only secures our position in today's growth segments but also paves the way for future market engagements.'
Young Liu, Chairman and CEO of Foxconn, said, 'Our partnership, sealed today, benefits greatly from Foxconn's global network and our supply chain management expertise. We look forward to exploring further opportunities in the transportation and mobility sector with ZF Foxconn Chassis Modules.'
The joint venture will be led by ZF executives Eike Dorff as CEO and Urs Rienhoff as CFO. With approximately 3,800 employees globally—nearly 100 of whom are based in Germany—ZF Foxconn Chassis Modules aims to capitalise on expansion opportunities in the global market for axle system assemblies and continually optimize processes to adapt effectively to market needs and partner requirements.
The company already boasts an impressive footprint, represented at 25 locations worldwide and reporting sales of about €4.3 billion ($4.7 billion) in 2023. This new alliance between ZF and Foxconn is set to drive significant advancements in automotive chassis technology, meeting the demands of both existing and new customers while fostering innovative solutions for the industry.
Also Read:
ZF Group Elevates Safety Innovation With ZF LIFETEC Rebranding