ZF Signs Multi-Billion Euro Deal with BMW for Automatic Transmission Development
German automotive supplier ZF has announced the signing of a multi-billion euro contract with fellow German automaker BMW for the development and supply of automatic transmissions, which will extend through the end of the 2030s.
A spokesperson for ZF stated that this agreement represents the largest single order for its electric technology division since 2019. This division oversees the development of internal combustion engines as well as electric and hybrid motors, and is central to the company's ongoing restructuring efforts.
The spokesperson confirmed that all divisions within the company will benefit from this agreement, but emphasized that the contract will not alter the planned workforce reductions.
ZF is currently facing severe financial challenges due to significant net debt stemming from previous acquisitions and weak demand from automotive manufacturers.
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 largest automotive suppliers globally, ZF employs approximately 161,600 people across 161 sites in 30 countries, generating an estimated revenue of around 41.4 billion euros in 2024. The company is scheduled to announce its financial results for 2025 on March 19.
