ZF reportedly plans to spin off electrified driveline divisione for cost-cutting reasons

According to a report by German newspaper Handelsblatt, ZF is evaluating a full spin-off of its Electrified Powertrain Technologies division under a project called “Verde”. Such move wouldn’t affect the Commercial Vehicles division as it concentrates on a branch of the company targeting the passenger car sector.

ZF to sell Electrified Powertrain Technologies division?

ZF management would be aiming to complete the spin-off this year, with a potential sale by 2026. Hyundai Group and Foxconn are rumored buyers, still according to the Handelsblatt, but no agreement has been confirmed. The division holds €30 billion in orders but faces profitability concerns.

The restructuring could impact over 32,000 employees and represents €11.5 billion in revenue—nearly a quarter of ZF’s total. Schweinfurt, where 6,000 of 8,000 employees work in the division, would be among the most affected sites. But a spin-off would affect not only its main location in Schweinfurt, but also the company headquarters in Friedrichshafen and the transmission plant in Saarbrücken, e-mobility agency Electrive notes.

ZF announced in July 2024 a company-wide restructuring to consolidate German locations and reduce up to 14,000 jobs by 2028. The company cited cost pressure, weak EV demand, and declining transmission volumes for conventional and hybrid vehicles as key challenges.