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ZF Keeps E‑Motor and Inverter Production In‑House, Plans Further Job Cuts in Bavaria

The move prioritizes in-house know-how to regain competitiveness in the troubled drivetrain unit.

Overview

  • ZF, which confirmed the choice Tuesday after a months-long make-or-buy review, will keep designing and building electric motors and inverters itself.
  • A mid–three-digit number of jobs will be cut at the Schweinfurt and Auerbach sites, with exact figures not yet set and the company saying it will try to avoid forced layoffs.
  • Leaders say they must close a cost gap and have tweaked designs, renegotiated suppliers, and reworked production lines to make the parts competitive.
  • Management targets a profitable Division E in 2026 and about €500 million in yearly savings by 2027 after losses tied to slow EV demand and past discounting strategies.
  • The decision followed talks with a parity committee of labor and management and fits into a wider plan that already called for 7,600 job cuts in the drivetrain division and up to 14,000 across ZF.