ZF Friedrichshafen AG has announced a 50-50 partnership with Hon Hai Technology Group (Foxconn) for passenger car chassis systems, a key move to accelerate and expand automotive and supply chain opportunities with top-tier customers.
Accordingly, Foxconn will acquire a 50% stake in ZF Chassis Modules GmbH, a unit of ZF Group which bundles the passenger car axle systems assembly and has an enterprise value of approximately €1 billion, enabling a strategic partnership that will further grow opportunities for ZF Chassis and widen new perspectives for Foxconn in the automotive sector. The partnership will leverage each other’s capabilities and expand product offerings in the internal combustion engine, especially the electric vehicle (ICE/EV) space.
Dr Holger Klein, CEO, ZF, 'ZF as a globally active automotive supplier and Foxconn as a leading electronics manufacturer complement each other excellently to jointly open new customer groups and expand its presence, especially in growing markets. With this step, we are implementing our strategy to grow specific business areas of ZF with the support of external partners beyond current limits.“
Young Liu, Chairman and CEO, Foxconn, 'Foxconn’s global network and supply chain management know-how, plus the expertise, diligence, and commitment that ZF Chassis brings will result in a successful execution of value-added creation for both our shareholders. We are also keen to explore more partnership opportunities with the ZF Group in the broader transportation and mobility space.”
The enterprise value of ZF’s business unit is approximately €1 billion or more. ZF and Foxconn expect the JV agreement to be effective within six to nine months after signing and following regulatory approvals.
ZF Chassis Modules GmbH, serving global premium and volume car manufacturers, is represented at 25 locations worldwide. It has about 3,300 employees, of which 100 are in Germany. The business unit’s sales are expected to exceed €4 billion in 2023.