ZF Blames 'Enormous Pressure' on Auto Industry on Back of 1 Billion Euro Loss: Report
The German auto supplier noted that it had set aside 600 million euros for restructuring costs last year, primarily for staff reductions. Its debt rose to 10.5 billion euros in 2024, Reuters reported.
ZF reported a 1 billion euro loss the previous year, as it earmarked hundreds of millions of euros for a restructuring to address what it called the "enormous pressure" facing its industry, Reuters reported.
Europe's auto sector is facing increasing trade tensions, weak demand, cheap competition from China and a high cost of shifting to EVs, the newswire noted.
The German auto supplier noted that it had set aside 600 million euros for restructuring costs last year, primarily for staff reductions. Its debt rose to 10.5 billion euros in 2024, Reuters reported.
ZF aims to slash up to 14,000 jobs in Germany by 2028, resulting in one in four jobs. A number of smaller plants have already shut down. The previous year, the workforce in Germany reduced by 4000 positions, the newswire noted. ZF lowered its annual sales forecast twice last year.
"The outlook for the 2025 financial year remains cautious. Economic growth is once again expected to be weak, particularly in the euro zone and Germany, and vehicle markets could remain below the previous year's levels," ZF said.
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21 Mar 2025
Autocar Professional Bureau

Shruti Shiraguppi