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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
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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.
ZF Friedrichshafen Plans Further Cost Cuts Amid Declining Car Production
(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)
Key Takeaways
- •ZF Friedrichshafen may cut costs further if car production declines.
- •CFO Michael Frick indicates production is below projections.
- •ZF faces challenges from electric vehicle transition and high costs.
- •Plans to cut up to 14,000 jobs in Germany by 2028.
- •Europe's auto sector struggles with tariffs and competition from China.
Frequently Asked Questions about Germany's ZF to cut costs even more if car production declines, says CFO
1What is ZF Friedrichshafen's plan if car production declines?
ZF plans to implement more stringent cost-cutting measures if global car production declines further.
2How many jobs does ZF plan to cut in Germany?
ZF plans to cut up to 14,000 jobs in Germany by 2028, which would amount to one in four jobs.
3What challenges is ZF facing in the automotive market?
ZF is grappling with falling sales and profits due to weak demand, high production costs, and competition from China.
4What factors are affecting the European auto sector?
The European auto sector faces high production costs, falling demand, rising competition from China, and the shift to electric vehicles.
5What did ZF's CFO say about current production projections?
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.
