ZF, a German automotive supplier, is exploring options for potential spin-off of its electric drive train division, reported Reuters citing Handelsblatt news report.
A company spokesperson was cited by Reuters as saying in an emailed statement that the move comes as the firm looks to returning the unit to profitability amidst “the delayed ramp-up of e-mobility, the high costs and the resulting low margins in the traditional transmission business”.
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ZF is “examining strategic collaborations and partnerships” for either parts or entire unit.
The German firm is currently in discussions with employee representatives regarding the status of these considerations.
In October 2024, it was reported that ZF was looking to pull out of a joint $3bn microchip manufacturing project with US chipmaker Wolfspeed in western Germany.
Wolfspeed paused the project due to weaker than expected semiconductor demand and uncertainties about entering the European market.
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By GlobalDataZF’s planned investment was $185m for a stake in the Saarland facility, which was intended to produce chips for electric vehicles.
Additionally, in November 2024, reports emerged that ZF Group sold a 4.32% stake in ZF Commercial Vehicles Control Systems India for $121m, as per exchange data.
WABCO Asia, a promoter within ZF Group, offloaded 820,000 shares at an average price of Rs12,465.19 each, according to the bulk deal data on the National Stock Exchange of India.
ZF is a global technology company engaged in supplying mobility solutions for passenger cars, commercial vehicles, and industrial applications.
It serves vehicle manufacturers, mobility providers, and startups, focusing on vehicle electrification and transportation systems.
