Finance
ZF considering spin-off of electric drive division, Handelsblatt reports
Published by Global Banking & Finance Review®
Posted on February 18, 2025
1 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 18, 2025
1 min readLast updated: January 26, 2026
ZF is considering spinning off its electric drive division to tackle profitability challenges due to high costs and low margins.
BERLIN (Reuters) - German automotive supplier ZDF is considering a spin-of of its electric drive train division, the Handelsblatt business news outlet reported on Tuesday, citing company sources.
ZF said it was "examining strategic collaborations and partnerships" for either the entire unit or parts of it.
The considerations were an effort to make the unit profitable again with the necessary investments against the backdrop of "the delayed ramp-up of e-mobility, the high costs and the resulting low margins in the traditional transmission business", a company spokesperson said in an emailed statement to Reuters.
The company said it was in dialogue with employee representatives about the status of the considerations and declined to comment further.
(Reporting by Ilona Wissenbach, Writing by Friederike Heine, Editing by Rachel More)
ZF is considering a spin-off of its electric drive train division to improve profitability.
The spin-off is part of efforts to make the unit profitable again amid high costs and a delayed ramp-up of e-mobility.
ZF stated that it is examining strategic collaborations and partnerships for the entire unit or parts of it.
Yes, ZF is in dialogue with employee representatives about the status of the considerations.
ZF is facing challenges such as high costs and low margins, which have prompted the need for necessary investments.
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