ZF Friedrichshafen Retains 'Division E' Despite Job Losses and Cost Cuts
ZF Friedrichshafen has decided to retain its 'Division E' drive unit, despite plans for significant job losses and cost cuts. The company aims to reduce expenses by over 500 million euros by 2027, with some product developments being discontinued. Meanwhile, CEO Mathias Miedreich is exploring strategic partnerships to share costs and has confirmed Panasonic as a key ally.
The decision to keep 'Division E' was a joint effort by management, the works council, and IG Metall union. CEO Miedreich described the agreement as a significant step forward, acknowledging the challenges ahead. By 2030, around 7,600 jobs in 'Division E' are expected to be lost, although these are not additional cuts. To mitigate costs, the weekly working time for employees in 'Division E' and the Z plant will be reduced by around 7% until the end of 2027.
In terms of partnerships, US-based companies are favored due to easier regulatory integration and market access. German competitors are largely excluded for antitrust reasons, while Chinese partners are considered politically risky. Miedreich plans to form strategic alliances in specific areas of 'Division E' to share costs with other companies. Panasonic has already been confirmed as a strategic partner, contributing to productivity and innovation at ZF Automotive.
ZF Friedrichshafen's retention of 'Division E' comes with a plan to reduce costs by over 500 million euros by 2027. Job losses are expected, but not additional to previously announced figures. Strategic partnerships, particularly with US-based companies, are being explored to share costs. The planned wage increase for April 2026 has been postponed as part of these cost-cutting measures.
