CEO of ZF announces shift in e-mobility focus: Delving into alternative solutions no longer limited to electric vehicles
ZF's New CEO Outlines Strategy for Powertrain Division
Mathias Miedreich, the newly appointed CEO of automotive supplier ZF, has outlined a strategic plan to revitalise the company's powertrain division. In a series of conversations and presentations, Miedreich has emphasised the potential for growth and the need for a decisive restructuring.
ZF's strength lies in its understanding of various powertrain systems, including traditional internal combustion engines, hybrids, and range extenders. This expertise positions the company as a valuable advisor and system provider for US automakers considering V8 engines, hybrids, or range extenders.
The future of powertrains, Miedreich believes, will be shaped by technological openness. He sees the trend towards hybrid technology gaining traction again, and he is particularly interested in range extender electric vehicles. These vehicles use a compact internal combustion engine as a power generator without connecting to the wheels, offering an alternative to fully electric vehicles.
The challenges for ZF's powertrain division are significant, but Miedreich is optimistic. He compares the division to a rough diamond: valuable but in poor condition. His plan includes reducing costs, adjusting capacities, and leveraging economies of scale in components.
One way to achieve these goals is through potential partnerships. Such partnerships could bring benefits through economies of scale, such as in the production of electric motors. However, the potential partner for ZF in the cooperation aimed at reducing overcapacity in electrification and securing the long-term future of employees in the Powertrain division has not been explicitly identified.
Miedreich's strategy also includes a focus on the electrification sector. ZF faces an excess of capacity in electrification, which it aims to reduce. Despite the financial difficulties caused by the powertrain division's development of range extender solutions, ZF achieved a balanced result in its powertrain division in the first half of 2025, thanks to many small changes.
Miedreich had several conversations with Chinese customers at the IAA who were particularly interested in range extender solutions. He is convinced that ZF is one of the companies that can answer 'the complex questions of tomorrow's powertrain.' If ZF succeeds in this, it will be hard to beat in powertrain systems.
Miedreich's long-term vision for the powertrain division is clear: to secure the future of employees who will remain in the division long-term. He believes that the previous focus on electrification was not wrong - strategies must be long-term. Doubling production volumes could lead to significant cost advantages and thus improve ZF's competitiveness.
In conclusion, Mathias Miedreich's strategic plan for ZF's powertrain division emphasises the potential for growth, the need for a decisive restructuring, and a focus on long-term strategies. With its expertise in various powertrain systems and a commitment to technological openness, ZF is well-positioned to meet the challenges of the future.
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