ZF and Foxconn form passenger car chassis joint venture

ZF Friedrichshafen AG, one of the world's largest automotive suppliers, and Hon Hai Technology Group, the world's largest electronics manufacturer, have formed a 50:50 partnership in the field of passenger car chassis systems. According to ZF CEO Dr. Holger Klein, this is an important step towards faster and more comprehensive cooperation with renowned customers in both the automotive and supplier industries.

Taiwanese electronics giant takes 50 percent stake in chassis division

Foxconn will acquire a 50 percent stake in ZF Chassis Modules GmbH—a ZF division that consolidates the assembly of passenger car axle systems and has an enterprise value of around one billion euros. This strategic partnership is intended to allow ZF Chassis Modules GmbH to further expand its market opportunities. Additionally, it opens up new perspectives for Foxconn to grow in the automotive sector. According to company statements, the partnership aims to leverage mutual competencies and expand the product offerings for vehicles with combustion engines and especially for electric vehicles.

“With Foxconn, we have gained a strong strategic partner with whom we can explore new perspectives and opportunities for ZF Chassis Modules GmbH,” says ZF CEO Klein. “ZF, as a globally operating automotive supplier, and Foxconn, as a leading electronics manufacturer, complement each other excellently to jointly tap into new customer circles and expand their presence, particularly in growth markets. With this step, we are implementing our strategy to grow beyond previous limits in certain business areas of ZF with the support of external partners.”

ZF chassis division is represented worldwide

ZF Chassis Modules GmbH supplies global premium and volume manufacturers and is represented at 25 locations worldwide. The company employs around 3,300 people, 100 of whom are in Germany. The sales of the business unit are expected to exceed four billion euros (around 4.5 billion US dollars) in 2023.

“I am very pleased about this partnership. Foxconn's global network and expertise in supply chain management, as well as the expertise, care, and commitment of ZF Chassis Modules GmbH, will lead to successful value creation for our shareholders,” emphasizes Young Liu, Chairman and CEO of Foxconn. “We are very interested in exploring further partnership opportunities with ZF in the transportation and mobility sector.”