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ZF considering spin-off of electric drive division, Handelsblatt reports

Published by Global Banking & Finance Review

Posted on February 18, 2025

1 min read

· Last updated: January 26, 2026

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Electric drive division spin-off news from ZF automotive supplier - Global Banking & Finance Review
The image depicts a conceptual representation of ZF's electric drive division, highlighting the potential spin-off of this unit. This decision is influenced by the challenges in e-mobility and traditional transmission costs, as reported by Handelsblatt.
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ZF Explores Spin-Off of Electric Drive Division Amid Profitability Challenges

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)

Key Takeaways

  • ZF is considering a spin-off of its electric drive division.
  • The move aims to address profitability issues.
  • High costs and low margins are affecting the division.
  • ZF is exploring strategic collaborations and partnerships.
  • Dialogue with employee representatives is ongoing.

Frequently Asked Questions

What is ZF considering for its electric drive division?
ZF is considering a spin-off of its electric drive train division to improve profitability.
Why is ZF exploring a spin-off?
The spin-off is part of efforts to make the unit profitable again amid high costs and a delayed ramp-up of e-mobility.
What has ZF said about its strategic plans?
ZF stated that it is examining strategic collaborations and partnerships for the entire unit or parts of it.
Is ZF communicating with its employees regarding the spin-off?
Yes, ZF is in dialogue with employee representatives about the status of the considerations.
What challenges is ZF facing with its electric drive division?
ZF is facing challenges such as high costs and low margins, which have prompted the need for necessary investments.

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