ZF Friedrichshafen: The automotive supplier is realigning itself. Photo: dpa
Berlin. The premature end to electric car projects is pushing the struggling auto supplier ZF Friedrichshafen into the red. ZF has agreed with various customers to terminate several projects early that did not achieve the expected profitability due to the slower ramp-up of e-mobility, the company announced on Friday.
This decision will lead to a one-off charge and an accounting loss in 2025. CFO Michael Frick said the step frees ZF from legacy issues and “is the basis for new scope for action and sustainably improved profitability in the coming years.”
In operational terms, the last financial year went better than expected, thanks to the austerity measures. At significantly more than four percent, the adjusted profit margin is above the self-imposed range of three to four percent, it said, citing preliminary figures.
At more than one billion euros, the cash inflow is around twice as high as expected. As a result, the debt level was reduced at the end of the year. ZF boss Mathias Miedreich said that this was cause for confidence. “Our measures to realign ZF are taking effect.”
In autumn 2025, ZF agreed with the works council on a restructuring pact for the drive division in order to reduce the company’s costs. This division alone accounts for more than half of the 14,000 job cuts announced in 2024. ZF is not only suffering from the crisis in the automotive industry. The foundation group from Lake Constance is also heavily indebted after major takeovers.