Article

ZF Friedrichshafen AG is repositioning strategically due to a slower transition to electric vehicles, addressing substantial debt and rising interest rates. The company is increasing its focus on hybrid powertrains and traditional components while adapting its product portfolio to include electric and combustion vehicles.

The European market for plug-in hybrids grew by approximately one-third last year, aiding ZF's sales. The company plans to use part of its €6 billion in liquidity to repurchase maturing bonds and has reduced borrowings significantly.

ZF has sold its driver assistance division for €1.5 billion and is exploring growth opportunities in defense, aiming for this sector to represent 1% of revenue by 2028. ZF's shift reflects a pragmatic response to current automotive market conditions.