Headlines
Germany's ZF to cut costs even more if car production declines, says CFO
Published by Global Banking & Finance Review®
Posted on July 10, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 10, 2025
1 min readLast updated: January 23, 2026
ZF Friedrichshafen plans more cost cuts if global car production declines, says CFO. The company faces challenges from the shift to electric vehicles and high costs.
(Reuters) -Germany's second-largest automotive supplier ZF Friedrichshafen plans to take even more stringent cost-cutting measures in the event that global car production declines further, finance chief Michael Frick told WirtschaftsWoche magazine.
"We are below our projections," the CFO said in an interview published on Thursday, and there are indications that even fewer cars will be produced worldwide in the second half of the year.
"Of course, ZF will then have to take additional cost-cutting measures," he added.
ZF, which helps automakers develop gearboxes and hybrid drivetrains, has been grappling with falling sales and profits driven by weak demand and high costs associated with the shift to electric vehicles.
Apart from tariffs, Europe's auto sector faces multiple hurdles, including high production costs, falling demand, rising competition from China and the shift to electric vehicles.
As part of its ongoing restructuring efforts, ZF plans to cut up to 14,000 jobs in Germany by 2028, which would amount to one in four jobs.
(Reporting by Ilona Wissenbach, writing by Amir Orusov, editing by Miranda Murray)
ZF plans to implement more stringent cost-cutting measures if global car production declines further.
ZF plans to cut up to 14,000 jobs in Germany by 2028, which would amount to one in four jobs.
ZF is grappling with falling sales and profits due to weak demand, high production costs, and competition from China.
The European auto sector faces high production costs, falling demand, rising competition from China, and the shift to electric vehicles.
The CFO mentioned that ZF is below their projections and indicated that even fewer cars will be produced worldwide in the second half of the year.
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