Gearbox production at ZF: Largest single order since 2019. Photo: dpa
Munich. The financially troubled automotive supplier ZF has signed a billion-dollar contract with the car manufacturer BMW. The core of the agreement is the delivery and further development of an automatic transmission, as ZF announced in Friedrichshafen on Lake Constance. The contract is worth several billion euros. It will run until the late 2030s.
This is the largest single order that Division E has landed since 2019, said a company spokesman. The core division, which develops and produces combustion engines in addition to electric and hybrid drives, is at the center of the restructuring. All trades would benefit from this, the spokesman continued. The contract does not affect the planned job cuts.
ZF is deep in crisis: net liabilities from takeovers and weak orders from car manufacturers are putting a strain on business. According to previous information, up to 14,000 jobs will be cut in Germany by the end of 2028. Thousands of jobs have already been lost. The working hours of many employees were also reduced.
The company is one of the world’s largest automotive suppliers with around 161,600 employees at 161 locations in 30 countries. In 2024, the group achieved sales of around 41.4 billion euros. ZF plans to present the figures for 2025 on March 19th.