ZF has decided to continue producing electric motors and inverters internally following a strategic review of its Electrified Powertrain Technologies division, known as Division E.
The decision concludes a “Make or Buy” review launched by the company to determine whether core electric powertrain components should continue to be manufactured internally or sourced from external suppliers.
ZF Chief Executive Mathias Miedreich said the company had opted to retain production of key electric mobility technologies in-house.
“The decision to produce the core components of electric powertrains, namely motors and inverters, was made in close collaboration with our employee representatives,” Miedreich said.
“This aligns with our employee-oriented corporate culture but requires significantly improved cost structures to return our electric powertrains to a path of economic success and secure employment in the long term,” he added.
The company launched the review after announcing plans last year to cut 7,600 jobs in Division E, which has been operating below expected production volumes amid slower-than-anticipated electric vehicle demand growth.
Despite the decision to maintain production internally, ZF said it would proceed with the previously announced job reductions and implement additional cuts affecting several hundred more positions.
Division E head Sebastian Schmitt said further reductions involving a three-digit number of jobs would be carried out as part of the restructuring linked to the in-house manufacturing decision.
German media reports said several hundred jobs could be eliminated at ZF facilities in Schweinfurt and Auerbach in Bavaria, where more than 1,000 employees currently work in electromobility operations.
Achim Dietrich, chair of ZF’s general works council, welcomed the outcome of the review.
“The outcome of the special review is a major success for us and the employees in Germany,” Dietrich said.
“Last summer, both products were marked for ‘Buy’, which would have meant a massive reduction in jobs and the loss of expertise,” he added.
ZF, like several automotive suppliers and manufacturers, had invested heavily in electric mobility in anticipation of faster market growth.
However, weaker EV demand in several regions has pressured profitability in the company’s passenger vehicle powertrain operations and triggered a broader restructuring programme.
Miedreich initiated the strategic review after taking over as chief executive from Holger Klein in October 2025.
Before becoming CEO, Miedreich led Division E within ZF’s executive board structure.
German media reports said the executive has adopted a management style emphasizing cooperation with employees and consensus-building during the restructuring process.