The restless German car supplier ZF Friedrichshafen, best known for his excellent automatic transmission, writes Die red numbers because of the costs for the conversion of the company. The bottom line is that the net loss in 2024 amounted to one billion euros.
The reason is around 600 million euros in provisions for restructuring costs, ie mainly for staff loss. Last also interest payments for the increased debts to the increase of EUR 10.5 billion.
“The year 2024 made clear how enormous pressure our industry and therefore our company is under control,” said ZF -Baas Holger Klein. The strategy against the crisis, which was taken two years ago, successful successes and will continue.
Weak demand and high investments in electromobility
The second largest German car supplier after Bosch suffers from a weak demand and high investments in electromobility, which are not counted as expected because of the slow switch to electric cars. The Foundation Group is therefore planning to reduce to 14,000 jobs in Germany by 2028, that would be every fourth workplace there.
Some smaller works are already closed. “The measures initiated are necessary to restore us for future growth,” says CFO Michael Frick. The restructuring will result in further savings from 2025. Last year the workforce in Germany shrunk by around 4,000 jobs.
ZF Friedrichshafen had reduced the annual prediction twice last year due to the descent in the car industry and now reached the desired voltage. The business profit for special effects fell with a good third to 1.5 billion euros. Turnover is approximately eleven percent to 41.4 billion euros, including the separation of the Axle Monument Business. The return fell by one and a half percentage points to 3.6 percent.
Another decrease in vehicle markets is expected this year
The current year does not improve, because ZF, number four of the car suppliers worldwide, expects a further decrease in vehicle markets for Europe. The transformation pressure remains high and trade barriers such as the American import tasks caused great uncertainty. With a group course of more than 40 billion, ZF expects a margin of three to four percent. “The image of the 2025 financial year remains behavior.”
Part of the strategic repeat partnerships are to strengthen individual business areas, ZF Boss Klein continued. This influences the areas of e-mobility, electronics and driver assistance systems. Investments are further invested in core areas such as chassis, commercial vehicles and industrial technology.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
