Automotive supplier ZF has announced plans to produce two additional electric passenger car axle drives at its Saarbrücken facility in Germany, with series production set to begin in 2025. This expansion follows the company’s 2022 commitment to convert the Saarbrücken plant into a central hub for all-electric drive systems, involving a substantial investment.
ZF began production of its first electric axle drive at Saarbrücken earlier this year, catering to European car manufacturers. The company’s recent decision to add two more electric axle drives marks a significant milestone in the site’s transformation, according to Andreas Hubbuch, site manager. “With the addition of two more electric mobility products, we have reached a milestone in transforming the Saarbrücken site. Now, we need to consistently implement the measures we have decided on to remain internationally competitive in the long term,” Hubbuch said.
The investment in a new, ultra-modern production line is expected to secure 300 jobs at the Saarbrücken plant. Markus Schwabe, Head of Business in the Electrified Drive Technologies division, noted, “The measures that have now been decided upon give us the flexibility we need to manufacture such products in Germany.” Schwabe also highlighted the need for structural adjustments due to the anticipated lower added value in electric mobility, which will impact employment levels at the site.
Despite these adjustments, the Saarbrücken plant, one of ZF’s largest with approximately 10,000 employees, continues to be a key location for the company. ZF has implemented various measures to enhance competitiveness, including optimizing machine usage and introducing partial retirement programs to align with the shifting focus towards electric mobility.
Currently, the Saarbrücken facility manufactures the 8-speed automatic transmission for various applications, including conventional, mild hybrid, and plug-in hybrid vehicles. ZF’s ongoing investment and adaptation efforts underscore its commitment to maintaining a competitive edge in the evolving automotive landscape.
