ZF Signs Multi-Billion Euro Contract with BMW for Automatic Transmissions
German automotive supplier ZF has announced the signing of a multi-billion euro contract with fellow German automaker BMW to develop and supply automatic transmissions, a deal that is set to last until the end of the 2030s.
A spokesperson for ZF stated that this agreement represents the largest individual order for its electric technologies division since 2019, which oversees the development of both internal combustion engines and electric and hybrid motors. This contract is a key element of the company's ongoing restructuring efforts.
The spokesperson confirmed that all divisions within ZF will benefit from this agreement, but emphasized that it will not alter previously established plans for workforce reductions.
ZF is currently facing significant financial challenges due to a substantial net debt from past acquisitions and weak demand in the automotive sector.
According to prior reports, the company plans to cut up to 14,000 jobs in Germany by the end of 2028, having already begun to eliminate thousands of positions and reduce working hours for many employees.
As one of the world's largest automotive suppliers, ZF employs approximately 161,600 people across 161 locations in 30 countries, with revenues reaching around 41.4 billion euros in 2024. The company is scheduled to announce its financial results for 2025 on March 19.
