Friedrichshafen, Germany and Taipei, Taiwan. ZF Friedrichshafen AG (ZF Group), one of the world’s largest automotive suppliers, and Hon Hai Technology Group (“Foxconn”) (TWSE:2317), the world’s largest electronics manufacturer, today announced a 50-50 partnership in passenger car chassis systems, a key move aimed at accelerating and expanding automotive and supply chain opportunities with top-tier customers.
Foxconn will acquire a 50-percent stake in ZF Chassis Modules GmbH, a unit of ZF Group which bundles the passenger car axle systems assembly and has an enterprise value of approximately €1 billion (approximately US$1.1 billion), enabling a strategic partnership that will further grow opportunities for ZF Chassis and widen new perspectives for Foxconn in the automotive sector. The partnership will leverage each other’s capabilities and expand the range of product offerings in the internal combustion engine and especially electric vehicle (ICE/EV) space.
“With Foxconn, we have gained a strong strategic partner with whom we can open up new perspectives and opportunities for the ZF Chassis Modules GmbH,” says ZF CEO Dr. Holger Klein. “ZF as a globally active automotive supplier and Foxconn as a leading electronics manufacturer complement each other excellently to jointly open new customer groups and expand its presence, especially in growing markets. With this step, we are implementing our strategy to grow specific business areas of ZF with the support of external partners beyond current limits.”
“I am absolutely excited about this partnership. Foxconn’s global network and supply chain management know-how, plus the expertise, diligence, and commitment that ZF Chassis brings will result in a successful execution of value-added creation for both our shareholders,” said Foxconn Chairman and CEO Young Liu. “We are also keen to explore more partnership opportunities with the ZF Group in the broader transportation and mobility space.”
The enterprise value of ZF’s business unit is approximately €1 billion (approximately US$1.1 billion) or more. ZF and Foxconn expect the JV agreement to be effective within six to nine months after signing and is subject to customary regulatory approvals.
ZF Chassis Modules GmbH, serving global premium and volume car manufacturers, is represented at 25 locations worldwide. It has approximately 3,300 employees, of which 100 are in Germany. The business unit’s sales are expected to exceed €4 billion (US$4.5 billion) in 2023.