ZF receives €425 million from EU development bank for automated driving

The automotive supplier ZF is receiving a subsidized loan of 425 million euros from the European Investment Bank (EIB) in Luxembourg. The investment is intended to help the company transition to automated driving and secure jobs, according to the EIB and ZF. Over the next few years, the company, headquartered in Friedrichshafen on Lake Constance, plans to invest a total of 1.3 billion euros in innovations.

The funds are to be channeled into research and development of highly innovative technology for braking and steering systems - including the so-called steer-by-wire steering system, which eliminates the mechanical link between the steering wheel and the steering mechanism, replacing it with an electronic connection. According to the company, the 425 million euros is a loan with favorable terms.

Third Investment by the EU Development Bank

The transaction is already the third joint project between the EU Development Bank and ZF. In 2016, funds were allocated for enhancing the efficiency of combustion engines, and in 2021, the focus was on innovations in the field of autonomous driving.

ZF, headquartered in Friedrichshafen on Lake Constance, is one of the world's largest automotive suppliers with around 169,000 employees at 160 locations in 30 countries. The company is majority-owned by the Zeppelin Foundation of the city of Friedrichshafen. In 2023, it achieved a turnover of around 46.6 billion euros.