ZF and Wolong to Produce E-motors and Related Parts in China

ZF, the German manufacturer of automatic transmissions and related parts, and the Chinese company Wolong Electric have reached an agreement on establishing a joint-venture (JV) company. Both parties will not only boost ZF’s presence in China, but also will expand automotive electrification in the country.

The new facility will be located in Shangyu, China. It is expected that the new facility will give jobs to thousands of potential workers by 2025. The German company will own 26% of shares of the new undertaking. The JV will focus on manufacturing of e-motors and related parts intended for ZF driveline solutions. It should be noted that the JV has already been rewarded with a big order for e-motors for hybrid and e-drives, but there is still no detailed info in this deal.

ZF considers the new JV company as a significant step forward in enhancing ZF’s e-mobility strategy. With the new JV, ZF has a great chance to strengthen its positions on the Chinese market.

The Chinese company, in turn, also sees a great potential in this kind of cooperation. Sharing of experience with such a big company as ZF is a great boost in development opportunities in the segment of electric vehicles. Environmentally-friendly technologies have gained popularity in the automotive industry, especially in China, and the JV will certainly contribute to this trend.

ZF’s 8HP 8-speed automatic transmission

ZF more than once emphasized its interest in strengthening its presence in China. The partnership with Wolong won’t be the only ZF manufacturing facility of e-drives in the country, as one more plant, which will be specialized in this field, is currently being constructed in Hangzhou, and is planned to start manufacturing in 2020. ZF is already producing its new 8HP transmission in China.