ZF plans spin-off of Electrified Drive Technologies division

ZF is contemplating a full spin-off of its Electrified Drive Technologies division, which could significantly impact over 32,000 employees and represents nearly a quarter of the company's total revenue. The decision comes amid ongoing financial struggles, including a projected loss of billions and plans to cut up to 14,000 jobs in Germany, primarily within this division. ZF's management aims to complete the spin-off by 2026, with Hyundai Group and Foxconn rumored as potential buyers. The division has €30 billion in orders but faces profitability challenges due to high costs and low margins in traditional transmission businesses. ZF is also exploring strategic partnerships and collaborations to enhance growth and profitability. The company has acknowledged the difficult situation, stating it is in dialogue with employee representatives about the potential changes.