ZF Group, headquartered in Friedrichshafen, Germany, and Hon Hai Technology Group (Foxconn), based in New Taipei City, Taiwan, have announced a strategic partnership that will see Foxconn acquire a 50% stake in ZF Chassis Modules GmbH.
ZF Chassis Modules GmbH is a unit of the ZF Group that focuses on the assembly of passenger car axle systems. The unit reportedly has an enterprise value of approximately €1 billion. The partnership looks to leverage each company’s capabilities and expand the range of product offerings in the internal combustion engine and electric vehicle sectors.
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“With Foxconn, we have gained a strong strategic partner with whom we can open up new perspectives and opportunities for the ZF Chassis Modules GmbH,” says Dr Holger Klein, ZF CEO. “ZF as a globally active automotive supplier and Foxconn as a leading electronics manufacturer complement each other excellently to jointly open new customer groups and expand its presence, especially in growing markets. With this step, we are implementing our strategy to grow specific business areas of ZF with the support of external partners beyond current limits.”
Young Liu, Foxconn chairman and CEO, added, “I am absolutely excited about this partnership. Foxconn’s global network and supply chain management know-how, plus the expertise, diligence, and commitment that ZF Chassis brings will result in a successful execution of value-added creation for both our shareholders. We are also keen to explore more partnership opportunities with the ZF Group in the broader transportation and mobility space.”
ZF and Foxconn anticipate that the joint venture agreement will become effective within six to nine months after signing and following regulatory approvals.