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ZF And Foxconn Finalize Joint Venture For Passenger Car Chassis Systems, Aiming At Strategic Innovation
In a significant move within the automotive and electronics industries, ZF Friedrichshafen AG, a global leader in automotive supply, and Hon Hai Technology Group (Foxconn), the largest electronics manufacturer globally, announced the completion of their joint venture in passenger car chassis systems as of April 30, 2024. This strategic partnership, through the acquisition of a 50-percent stake in ZF Chassis Modules GmbH by Foxconn, marks a pivotal step towards mutual business growth and expansion of the customer base for both entities.
The collaboration, which was initially agreed upon on July 24, 2023, and subsequently received regulatory approval, has led to the formation of ZF Foxconn Chassis Modules. This venture is poised to play a crucial role in the future strategies of both ZF Friedrichshafen AG and Foxconn. It aims to leverage the core competencies and process expertise of both companies to explore new markets and development fields beyond their traditional scopes.
Dr. Holger Klein, Chairman of the Board of Management at ZF Friedrichshafen AG, expressed his enthusiasm about the partnership, highlighting the unique combination of engineering competence, agility, know-how, and customer orientation that this joint venture brings to the global scale. "Together, we will meet the needs of existing and new customers in an even more targeted manner and bring innovative technologies to series production," Dr. Klein stated.
Young Liu, Chairman and CEO of Foxconn, also shared his optimism regarding the partnership's potential to enhance growth strategies for both companies. He emphasized Foxconn's interest in exploring further partnership opportunities in the transportation and mobility sector with ZF Foxconn Chassis Modules.
The joint venture is led by two experienced ZF executives, Eike Dorff (CEO) and Urs Rienhoff (CFO), who are committed to seizing expansion opportunities in the global market for axle system assembly. Their strategy focuses on achieving maximum adaptation to markets and contractual partners through continuous process optimization.
ZF Foxconn Chassis Modules GmbH stands as a supplier to global premium and volume manufacturers and boasts a presence at 25 locations worldwide. With approximately 3,800 employees, nearly 100 of whom are based in Germany, the division reported sales of roughly €4.3 billion ($4.7 billion) for 2023.
The enterprise value of this division is estimated at around €1 billion (approximately $1.1 billion), underscoring the significant investment both companies have made towards this joint venture. This collaboration not only strengthens their positions in existing markets but also opens doors to new opportunities within the automotive sector.
About ZF: ZF is a forefront technology company providing advanced mobility products and systems across various sectors including passenger cars, commercial vehicles, and industrial technology. With a commitment to reducing emissions and enhancing safe mobility, ZF operates in multiple market segments beyond automotive. The company's global workforce of 168,700 employees contributed to sales of €46.6 billion in fiscal 2023. Operating across 162 production locations in 31 countries, ZF continues to be a key player in advancing mobility solutions worldwide.
For media inquiries regarding this groundbreaking partnership between ZF Friedrichshafen AG and Hon Hai Technology Group (Foxconn), contact Elan PR Ltd with representatives Kay Robinson and Nick Bailey available for further information.
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