Foxconn Advances in EV Market with ZF Acquisition

Foxconn has successfully completed its joint venture with Germany's ZF Group, expanding its presence in the passenger car chassis systems market. The new partnership involves Foxconn acquiring a 50% stake and Class A preferred shares in ZF Chassis Modules GmbH for €332 million (approximately NT$11.6 billion). This joint venture, named ZF Foxconn Chassis Modules, is valued at around €1 billion.

The collaboration expands Foxconn’s automotive business from electronics into powertrain and chassis systems, enhancing its vertical integration within the electric vehicle sector. ZF Group, a leading Tier 1 automotive supplier, serves major clients such as Mercedes-Benz, BMW, and Stellantis. This venture is expected to strengthen Foxconn’s ties with traditional German automakers and open up opportunities for new product introductions.

Foxconn and ZF Group signed the joint venture agreement on July 24, 2023, and received regulatory approvals before completing the acquisition on April 30, 2024. Foxconn Chairman Young Liu emphasized the company's global network and supply chain management capabilities, which will significantly contribute to the long-term strategic development of both parties.

Liu stated that the partnership with ZF Group enables Foxconn to broaden its scope from automotive electronics to powertrain and chassis systems, improving its vertical integration capabilities. This allows Foxconn to maintain consistent quality, achieve competitive costs, and increase collaboration with traditional automakers. The company plans to continue its alliance with ZF Group to explore further opportunities in the transportation and mobility sectors.

ZF Group CEO Holger Klein highlighted the strengths of the joint venture, combining both companies' engineering capabilities, flexibility, experience, technology, and customer focus. This strategic partnership ensures a leading position in growing fields and prepares for future market entry. Together with Foxconn, the joint venture aims to meet the diverse needs of new and existing market clients and apply innovative technologies to mass production vehicles.

The joint venture will be managed by two seasoned ZF executives, with Eike Dorff as CEO and Urs Rienhoff as CFO.