ZF and Foxconn Close on JV for Passenger Car Chassis Systems, Accelerating Strategic Innovation

*As of April 30, 2024, Foxconn acquires 50 percent of the shares in ZF Chassis Modules GmbH

*Strategic partnership strengthens mutual cooperation, business growth and expansion of the customer base 

*Partners explore further fields of innovation  

01.05.2024 Friedrichshafen/Taipei. ZF Friedrichshafen AG, one of the world's largest automotive suppliers, and Hon Hai Technology Group ("Foxconn", TWSE: 2317), the world's largest electronics manufacturer, have completed the establishment of their joint venture in the field of passenger car chassis systems on April 30.

The acquisition of a 50-percent stake in ZF Chassis Modules GmbH by Foxconn achieves a 50-50 partnership, which was agreed upon on July 24, 2023, and approved by regulators. The new joint venture, called ZF Foxconn Chassis Modules, is a central element in the future strategy of both shareholders.

Through the partnership, ZF Friedrichshafen AG secures resources for profitable growth, new customer access and additional development fields beyond the growing core market of axle system assembly. For Foxconn, the acquisition of a 50-percent stake in ZF Chassis Modules GmbH, with a total enterprise value of around €1 billion (around $1.1 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," - Dr. Holger Klein, Chairman of the Board of Management of ZF Friedrichshafen AG

"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." - Dr. Holger Klein, Chairman of the Board of Management of ZF Friedrichshafen AG

"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," - Young Liu, Chairman and CEO of Foxconn

"We are very interested in opening up further partnership opportunities in the transportation and mobility sector with ZF Foxconn Chassis Modules." - Young Liu, Chairman and CEO of Foxconn

The joint venture, which is headed by the two experienced ZF executives Eike Dorff (CEO) and Urs Rienhoff (CFO), strives to take advantage of expansion opportunities in the global market for axle system assembly. It aims to achieve the greatest possible adaptation to markets and contractual partners through continuous process optimization. The enterprise value of the ZF division is around €1 billion (around $1.1 billion). ZF Foxconn Chassis Modules GmbH supplies global 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 €4.3 billion ($4.7 billion). 

Dr. Holger Klein, Chairman of the Board of Management of ZF Friedrichshafen AG (left), and Young Liu, Chairman and CEO of Hon Hai Technology Group (Foxconn), with the brand logo of the new joint venture ZF Foxconn Chassis Modules. 

Picture credits: ZF