Automotive supplier ZF Friedrichshafen (ZF Group) and multinational electronics contract manufacturer Hon Hai Technology Group (Foxconn) have partnered on passenger car chassis systems, so that they may accelerate and expand automotive and supply chain opportunities.
Foxconn will acquire a 50% stake in ZF Chassis Modules – a unit of ZF Group. The unit combines passenger car axle systems assembly and has an enterprise value of approximately €1bn (approximately US$1.1bn). It is anticipated that the collaboration will result in new opportunities for ZF Chassis while also providing Foxconn with new perspectives in the automotive industry.
Drawing on each other’s respective knowledge, the companies aim to expand product offerings within the ICE and EV space.
“With Foxconn, we have gained a strong strategic partner with whom we can open up new perspectives and opportunities for the ZF Chassis Modules,” commented Dr Holger Klein, CEO, ZF. “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.”
“I am absolutely excited about this partnership,” added Young Liu, chairman and CEO, Foxconn. “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.”