ZF Signs Major Contract with BMW for Automatic Transmissions

The German automotive parts supplier ZF, currently facing financial difficulties, has signed a multi-billion euro contract with fellow German company BMW for the development and delivery of automatic transmissions, extending into the late 2030s.

A spokesperson for ZF stated that this contract represents the largest single order for its electric division since 2019, which focuses on the development of combustion engines as well as electric and hybrid drivetrains, and is central to the company’s restructuring efforts.

While the spokesperson confirmed that all divisions within the company would benefit from this contract, they also emphasized that it would not alter the previously announced job reduction plans.

ZF is grappling with a significant financial crisis due to a high net debt level stemming from past acquisitions and weak demand from automakers.

Previous reports indicate that the company plans to cut up to 14,000 jobs in Germany by the end of 2028, having already initiated layoffs and reduced working hours for many employees.

As one of the largest automotive suppliers globally, ZF employs approximately 161,600 people across 161 locations in 30 countries, with projected revenues of around €41.4 billion for 2024. The company will announce its financial results for 2025 on March 19.