ZF's Electric Drive Future Uncertain as Restructuring Plans Unveiled
ZF, a global automotive supplier, is set to decide the future of its electric motor and inverter production in the coming weeks. The company has announced significant restructuring plans, including job cuts and a shift in focus for its drive division.
ZF plans to reduce 7,600 jobs in its electric drive division by 2030, which accounts for a quarter of such jobs worldwide and a third in Germany. However, the company aims to avoid dismissals during these cuts. The exact number of jobs affected by the previously announced cuts of 11,000 to 14,000 by 2024 remains unclear.
The planned spin-off of the Electric Drive Division has been scrapped. Instead, it will remain an integral part of ZF and undergo independent restructuring. The drive division will now focus mainly on thermal management systems and the successor to the 8HP eight-speed hybrid transmission. ZF will also discontinue the development and production of certain electric vehicle components, such as on-board chargers, DC converters, and electric solid axles, to streamline its product range.
Mathias Miedreich, the new CEO of ZF, warned employees about harsh cuts on his first day. The company has agreed to postpone a planned wage increase and convert certain wage components into free time or let them expire to achieve immediate cost savings. Additionally, the weekly working time for employees at certain sites will be reduced by an average of around seven percent by the end of 2027, expected to save over half a billion euros by 2027.
ZF's future in electric motor and inverter production hangs in the balance as the company plans significant restructuring. The coming weeks will reveal the fate of these operations, with job cuts and a shift in focus expected to reshape the drive division.
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