ZF Friedrichshafen, the world's third-largest auto supplier, is imposing drastic cost-cutting measures to combat its €11.5 billion debt burden, carrying €500 million in annual interest. Employees face intense pressure to save, with morale suffering. CEO Holger Klein aims to slash €6 billion in two years, potentially eliminating nearly one in four German jobs. This has left the workforce unsettled and demanding a clearer vision for the company's future.
Despite positive 2023 sales figures (up 6.5% to €46.6 billion), ZF remains cautious about 2024 due to a challenging global market. Klein has streamlined operations, halting projects and outsourcing production, to reduce debt.
The broader supplier industry faces similar crises, struggling to adapt to the rapidly shifting automotive landscape. ZF's emphasis on austerity, rather than a clear electromobility strategy, adds to employee concerns. Works council representatives criticize the lack of investment in retraining its 56,000-strong German workforce.
ZF's recent acquisitions of TRW and Wabco contribute to its high debt, with some questioning the necessity of these deals. Plans for new technology production in Serbia further highlight concerns about shifting high-value manufacturing away from Germany.
While Klein works on a new strategy, ZF employees are left with uncertainty and a focus on immediate cost-cutting. The future of the company, and its German workforce, remains unclear.
