A Catalyst for Innovation and Collaboration for ZF Group

According to Peter Holdmann, a board member of ZF Group, China plays an essential role in the strategic framework of the ZF Group, serving as both a catalyst for innovation and a center for collaborative development. He referred to China as a "fitness center," emphasizing that it challenges ZF to improve and perform at higher levels, particularly amid the push towards electrification and intelligent mobility in the automotive industry.

Since ZF established its presence in China in the early 1980s, the company has gradually broadened its operations there. In just the past two years, ZF has opened a new research and development center and enhanced ten production facilities throughout China, indicating a significant expansion in its operations. Currently, almost one-third of ZF's global manufacturing sites are situated in the country, showcasing its importance in the company's overall strategy.

Holdmann noted that China remains a unique market that continues to witness strong growth. He pointed out the rapid research and development pace, which he termed "China Speed," and highlighted the beneficial collaborations with local automakers. Through these partnerships, ZF has been able to harness the quick innovation rates of Chinese manufacturers to enhance its own competitive edge.

During a recent event named Chassis Tech Day in Friedrichshafen, ZF presented its latest Chassis 2.0 strategy, showcasing advanced by-wire solutions already implemented by several Chinese automakers. Notably, a vehicle developed by NIO, a premium electric vehicle manufacturer in China, stood out as the first mass-produced car in the country to feature ZF's complete steer-by-wire system. Holdmann mentioned the significance of working closely with NIO, indicating that such collaboration is often rare between suppliers and car manufacturers.

The partnership with NIO is indicative of the growing integration between the Chinese and German automotive industries. Holdmann believes that China is setting the pace when it comes to automotive innovations, often being the first region to develop and launch new technologies before they reach Western markets. He also noted that the engineering prowess exhibited in China nowadays rivals that of traditional manufacturing hubs like Germany and North America, and, in specific areas, even outpaces them in speed.

Looking forward, Holdmann expressed optimism regarding the Chinese market's prospects. He reiterated ZF's commitment to a "local for local" strategy, focusing on development and production tailored for both Chinese and global markets. He anticipates that the growth rate in China will surpass that of other regions in the coming years.