ZF and Foxconn close on joint venture for passenger car chassis systems

ZF Friedrichshafen AG and electronics manufacturer Hon Hai Technology Group (T/A Foxconn), have completed the establishment of their joint venture in the field of passenger car chassis systems.

The acquisition of a 50-per cent stake in ZF Chassis Modules GmbH by Foxconn achieves a 50-50 partnership, which was agreed upon last July, and approved by regulators.

The new joint venture, called ZF Foxconn Chassis Modules, is said to be a central element in the future strategy of both shareholders.

Through the partnership, ZF says it 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-per cent stake in ZF Chassis Modules GmbH, with a total enterprise value of around €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.

The joint venture will be headed by the two experienced ZF executives Eike Dorff (CEO) and Urs Rienhoff (CFO).