"ZF" Signs a Multi-Billion Euro Contract with "BMW"
The German company "ZF", specializing in the supply of automotive parts and currently facing severe financial distress, announced the signing of a multi-billion euro contract with its compatriot giant "BMW" to develop and supply an automatic transmission, extending until the late 2030s.
A spokesperson for "ZF" stated that this deal represents the largest single order for the electric technologies division since 2019, which oversees the development of internal combustion engines, electric, and hybrid motors, and is at the heart of the company's restructuring process.
The spokesperson confirmed that all divisions of the company would benefit from this agreement, but emphasized that the contract would not change the previously planned job cuts.
"ZF" is facing a severe financial crisis due to a massive net debt resulting from previous acquisitions and weak demand from automotive manufacturers.
According to previous data, the company plans to eliminate up to 14,000 jobs in Germany by the end of 2028, after already starting to cut thousands of jobs and reduce working hours for many employees.
"ZF" is one of the largest automotive suppliers in the world, employing approximately 161,600 people across 161 locations in 30 countries, with revenues of about 41.4 billion euros in 2024. The company is scheduled to announce its financial results for 2025 on March 19.
