Hon Hai Technology Group, also known as Foxconn, has completed a significant joint venture with ZF Friedrichshafen AG, a leading global auto parts supplier, stepping into the automotive chassis system sector. The partnership, forming the newly minted ZF Foxconn Chassis Modules, equally splits ownership, each holding 50% of the shares. This move follows the initial joint venture agreement signed on July 24, 2023, and subsequent regulatory approval.
The joint venture is poised to become a pivotal element in the strategic development plans of both companies, with an enterprise value estimated at around €1 billion (approximately US$1.1 billion). Both ZF Group and Hon Hai are set to integrate their respective strengths—ranging from engineering prowess and supply chain management to technological innovation—to drive growth and penetrate new market segments within the automotive industry.
Holger Klein, CEO of ZF Group, highlighted the complementary strengths of the partnership, which aims to leverage collective capabilities to meet the evolving demands of both new and existing customers in the automotive sector. Liu Yangwei, Chairman of Hon Hai Technology Group, expressed enthusiasm for the finalized agreement, noting the potential for further collaboration in broader transportation and mobility areas.
The joint venture will operate under the leadership of Eike Dorff as CEO and Urs Rienhoff as CFO. With operations across 25 locations worldwide and a workforce of 3,800 employees, ZF Foxconn Chassis Modules is gearing up to enhance its production processes and adapt to dynamic market trends. The company aims to capitalize on its established presence in the global axle assembly market, where it serves top-selling and premium automotive manufacturers.
