ZF and Foxconn completes formation of JV
Automotive supplier ZF Friedrichshafen and EMS provider Foxconn, have completed the establishment of their joint venture in the field of passenger car chassis systems.
The acquisition of a 50% stake in ZF Chassis Modules GmbH by Foxconn achieves a 50-50 partnership, which was agreed upon during the summer of 2023. The joint venture is now official and will be called ZF Foxconn Chassis Modules.
Through the partnership, ZF secures resources for profitable growth, new customer access and additional development fields beyond the core market of axle system assembly. For Foxconn, the 50% stake in ZF Chassis Modules GmbH (with a total enterprise value of around EUR 1 billion) opens up new perspectives in the automotive sector. The joint venture will use core competencies and process expertise from existing business areas and jointly develop them for new markets.
"ZF and Foxconn complement each other perfectly in this joint venture," says Dr. Holger Klein, Chairman of the Board of Management of ZF Friedrichshafen AG, in a press release. "It uniquely combines engineering competence, agility, know-how and customer orientation on a global scale. This secures our presence in today’s growth segments and paves the way to engage in future markets. Together, we will meet the needs of existing and new customers in an even more targeted manner and bring innovative technologies to series production."
The joint venture, which is headed by the two ZF executives – Eike Dorff as CEO, and Urs Rienhoff as CFO – strives to take advantage of expansion opportunities in the global market for axle system assembly. ZF Foxconn Chassis Modules GmbH supplies premium and volume manufacturers and is represented at 25 locations worldwide. The company employs approximately 3,800 people, almost 100 of whom are based in Germany. The division's sales for 2023 amounted to roughly EUR 4.3 billion.
"I am very pleased about the partnership that has been sealed today. Foxconn's global network and supply chain management expertise will have a positive impact on the growth strategies of our two companies," says Young Liu, Chairman and CEO of Foxconn, in the press release. "We are very interested in opening up further partnership opportunities in the transportation and mobility sector with ZF Foxconn Chassis Modules."
