ZF Friedrichshafen AG, a global leader in automotive supply, and Hon Hai Technology Group (Foxconn), the preeminent electronics manufacturer, have completed their strategic formation of ZF Foxconn Chassis Modules.
Operations commenced on April 30 with Foxconn integrating a 50% stake in ZF Chassis Modules GmbH. This valuation, set at €1 billion (approximately $1.1 billion), marks a significant investment aimed at propelling the evolution of automotive chassis systems.
ZF sees this partnership as a vehicle to access new profitable growth trajectories, expand customer base, and explore novel development areas beyond its foundational axle system assembly expertise. For Foxconn, this move strategically augments its robust electronics manufacturing prowess with an entry into the automotive sector.
Dr. Holger Klein, Chairman of the Board of Management at ZF Friedrichshafen AG, noted, “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, added, “This partnership benefits immensely from Foxconn’s extensive global network and our mastery in supply chain management. We anticipate exploring further opportunities in transportation and mobility with ZF Foxconn Chassis Modules.”
Guided by ZF veterans Eike Dorff as CEO and Urs Rienhoff as CFO, ZF Foxconn Chassis Modules, with a workforce of approximately 3,800 worldwide—nearly 100 stationed in Germany—aims to expand its influence in the global market for axle system assemblies. The company is committed to optimizing its operational efficiencies to align with evolving market requirements and partner expectations.
With a robust presence in 25 locations globally and reporting revenues of about €4.3 billion ($4.7 billion) in 2023, the alliance between ZF and Foxconn is poised to drive substantial innovations in automotive chassis technology, serving the needs of both current and future customers while fostering cutting-edge solutions for the industry.
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