ZF Friedrichshafen AG and the Wolong Electric Group Co of China have officially signed off on their joint venture today. The partners will develop and produce electric motors and electric components for various vehicle applications at the Chinese Shenyang location, among others, working under the name 'Wolong ZF Automotive E-Motors Co'. Volume production is slated to start next year. The new joint venture will also supply components for the new ZF hybrid transmission.
"The joint venture with Wolong reinforces our market position and our competitive edge in China as well, which continues to be the biggest market for electromobility in the world," said Jorg Grotendorst, Head of the ZF E-Mobility Division. "As we're already using the available capacities for production and development on-site, we can start operations immediately." ZF holds a 26% share in the joint venture. Wolong has been a supplier for the ZF E-Mobility Division in China since 2018. In November 2019, the partners agreed to start a joint venture.
A joint venture with a global outlook
Volume production for the Wolong ZF Automotive E Motors venture has been slated to start on the Chinese market in 2021. "Founding Wolong ZF Automotive E-Motors Co Ltd also opens up a global perspective for us," commented Jiancheng Chen, Chairman of Wolong Electric. "We want to make this joint venture a global market leader for vehicle motors which use sustainable sources of energy."
To back this ambition, plans have been made to open other locations in the EU and North America. By 2025, around 2,000 employees are expected to work in production and development for Wolong ZF Automotive E Motors Co Ltd.