ZF Secures Multi-Billion Euro Deal with BMW for Automatic Transmissions
German automotive parts supplier ZF has announced a multi-billion euro agreement with BMW to develop and supply automatic transmissions, a contract that will extend until the late 2030s.
A spokesperson for ZF indicated that this contract is the largest single order for its electric technologies division since 2019. This division is responsible for the development of internal combustion engines, electric, and hybrid motors, and plays a central role in the company's ongoing restructuring efforts.
The spokesperson noted that while all divisions of ZF will benefit from this agreement, it will not alter the company's previously announced plans for job reductions.
Currently, ZF is grappling with significant financial challenges, including a high net debt stemming from past acquisitions and a decrease in demand from automotive manufacturers.
Recent reports indicate that ZF aims to cut up to 14,000 jobs in Germany by the end of 2028, following earlier layoffs and reductions in working hours for many employees.
As one of the largest automotive suppliers globally, ZF employs around 161,600 people across 161 locations in 30 countries, with projected revenues of approximately 41.4 billion euros in 2024. The company is set to release its financial results for 2025 on March 19.
