IG Metall Raises Concerns Over Potential ZF Automotive Division Spin-Off
The IG Metall labor union has expressed alarm at reports suggesting that automotive supplier ZF is considering spinning off its "Electrified Powertrain Technologies" division. The union emphasized its surprise and concern over the news, which reportedly involves exploring strategic partnerships and collaborations for the division.
ZF has confirmed that it is examining various options, including partnerships and potential divestment of the division in 2026. The division encompasses not only electric powertrains but also conventional and hybrid technologies, accounting for over 32,000 employees and generating approximately €11.5 billion in revenue.
Impact on Saarland Plant and Operations
The potential spin-off would significantly impact ZF’s Saarbrücken plant, employing around 10,000 workers. Saarland’s Minister of Economic Affairs, Jürgen Barke, has urged the company to provide timely and reliable perspectives for the Saarland site.
Reasons Behind the Division’s Performance Challenges
ZF has cited the delayed adoption of e-mobility, high costs, and low margins in the traditional transmission business as factors contributing to the division’s underperformance. The company intends to pursue strategic partnerships and collaborations to address these issues, potentially involving individual components or the entire division.
Union’s Perspective and Demands
The IG Metall union has criticized the potential spin-off as a "measure of desperation" rather than a viable solution. The union emphasizes the importance of the automotive powertrain division as the core of ZF’s operations and demands a sustainable concept for the division.
The union advocates for a comprehensive strategy that safeguards employment and strengthens ZF as an integrated technology group. It believes that divesting the division would threaten jobs at the Saarland plants and undermine the company’s long-term competitiveness.
Economic Minister’s Expectations
Minister Barke acknowledges the challenges facing ZF but stresses the need for the company to prioritize safeguarding its competitiveness in Germany. He expects the ZF management to provide clear and timely perspectives for the Saarland site, especially concerning the importance of the Saarbrücken plant as a central hub for e-mobility.
Conclusion
The potential spin-off of ZF’s Electrified Powertrain Technologies division has raised concerns among the IG Metall union and the Saarland government. The union emphasizes the critical role of the division in ZF’s operations and calls for a sustainable strategy that ensures job security and competitiveness. The government, in turn, expects the company to provide clear perspectives for the Saarland site and prioritize maintaining employment levels.
