ZF Friedrichshafen, Germany’s second-largest automotive supplier, may implement additional cost-cutting measures if global vehicle production continues to decline, the company’s finance chief said in an interview published Thursday.
“We are below our projections,” Chief Financial Officer Michael Frick told WirtschaftsWoche magazine, noting that signs point to even lower global car production in the second half of the year. “Of course, ZF will then have to take additional cost-cutting measures,” he added.
The company, which supplies gearboxes and hybrid drivetrains to major automakers, has been facing pressure from falling sales and profitability due to a combination of weak demand and mounting costs tied to the transition to electric vehicles.
The European automotive industry is contending with a range of challenges, including high production costs, slowing demand, rising Chinese competition, and geopolitical tensions that have led to new tariffs.
ZF is already undergoing a major restructuring plan, which includes cutting up to 14,000 jobs in Germany by 2028 — roughly one in four of its domestic workforce — as it adjusts to changing market conditions and the industry’s pivot toward electrification.
The company’s warning reflects broader uncertainty in the global automotive sector, where economic pressures and supply chain disruptions have continued to challenge growth and profitability.
