On May 1, ZF announced that it and Foxconn had officially completed the formation of a joint venture in the field of passenger car chassis systems on April 30. The new joint venture company is called ZF Foxconn Chassis Module Co., LTD., and Foxconn will acquire 50% of ZF Chassis Module Co., LTD., achieving 50:50 equal shareholding.
It is understood that ZF Chassis Modules AG has 25 locations around the world, about 3,800 employees, of which nearly 100 are based in Germany. In 2023, ZF's chassis module business generated sales of approximately 4.3 billion euros ($4.7 billion).
In this transaction, the enterprise value of the joint venture is approximately 1 billion euros (approximately $1.1 billion). In the future, the new company will be led by two experienced ZF executives, Chief Executive Officer Eike Dorff and Chief Financial Officer Urs Rienhoff, based on the complementary strengths of ZF and Foxconn, such as engineering capabilities, flexibility, experience technology and customer orientation. Together, we will apply more innovative technologies to production vehicles.
In July 2023, ZF announced that Foxconn will acquire 50% shares of its group's ZF Chassis Module Co., LTD., and the two sides will establish a 50:50 partnership in the field of passenger car chassis systems. The joint venture agreement was expected to take effect six to nine months after signing, subject to regulatory approval.
The establishment of the joint venture company marks a substantial step in the formal cooperation between the two sides.
