ZF Group (China) Business Report FY ended Dec. 2021

Financial Overview

 (in EUR billions)
FY ended Dec. 31, 2021 FY ended Dec. 31, 2020 Rate of change (%)
Sales 70 64 9.4

-The ZF Group achieved full-year sales of EUR 38.3 billion in 2021, up 17.5% year-over-year (y/y). Of this, the China region accounted for EUR 7 billion, up 9.4% y/y and 19.3% of the full-year total.

ZF Guangzhou Technical Center breaks ground

-According to several media reports, ZF Group's fourth R&D center in China - ZF Guangzhou Technical Center recently officially broke ground. It is reported that the first phase of the ZF Guangzhou Technical Center project, with an investment of about RMB 700 million and an area of about 10,000 square meters, will be completed by the end of 2022 and officially put into operation in 2023. ZF Guangzhou Technical Center is the fourth R&D center of ZF in China, and also the first R&D center of ZF in South China. The center is equipped with core engineering research and development capabilities, focusing on software development, mechatronics design, system integration and other core competencies to provide local customers with ZF's comprehensive technical solutions, such as active safety systems, passive safety systems, autonomous driving, electric drive systems and other technical solutions. (from multiple sources)

Launch of new office building for ZF Asia Pacific headquarters

-ZF Group (China) announced the launch of a new office building for its Asia Pacific headquarters. Located in the Shanghai Caohejing Hi-tech Park, this 8-story building will cover a floor area of 12,690 square meters and is expected to accommodate nearly 1,000 staff by the end of 2021. ZF’s Asia Pacific headquarters has three locations in Shanghai: Caohejing, Xuhui District; Jiuting Town, Songjiang District; and Anting Town, Jiading District. In the future, the new office building at Caohejing will mainly act as a central hub of business divisions and functional departments. The Jiuting park will continue to fulfill responsibilities of ZF China’s headquarters and play the role of ZF’s advanced engineering center, service center and innovation site, where R&D activities in relation to e-drive transmissions, chassis technologies and industrial technologies will take place. The Anting technology center will serve as ZF’s R&D center for autonomous driving, automotive active safety and passive safety technologies. (From a press release dated June 16, 2021)

Establishment of new business divisions

Commercial Vehicle Solutions Division
-ZF announced the successful start of its new “Commercial Vehicle Solutions” (CVS) division with effect from January 1, 2022. The new division combines ZF’s expertise in the commercial vehicle industry and will significantly advance solutions for safe, sustainable and digitized transport. The new division unites ZF’s former Commercial Vehicle Technology and Commercial Vehicle Control Systems divisions, the latter of which was formed from ZF’s May 2020 acquisition of WABCO. This makes ZF Commercial Vehicle Solutions the largest commercial vehicle supplier, holds a leading position in the core technology fields of electromobility, digitization as well as autonomous and networked driving. ZF’s Commercial Vehicle Solutions division is supported by around 25,000 employees based across 61 locations in 28 countries. (From a press release dated January 13, 2022)

Electrified Powertrain Technology Division
-On January 1, 2021, ZF officially establishes the Electrified Powertrain Technology division, which is the result of the merger of the former Car Powertrain Technology division and the E-Mobility division. The name Electrified Powertrain Technology emphasizes three things: electrification, powertrain and technology. As the business of the new division unfolds, ZF is gradually transitioning from a predominantly conventional transmission business to a predominantly hybrid, electric drive systems business. The fourth-generation longitudinal 8-speed transmission, which will be in mass production in 2022, offers two solutions: the P1 48V and P2 plug-in hybrid. The plug-in hybrid can be matched with an electric motor with a maximum output of 160 kW, which can fully cover daily driving conditions. (from multiple sources)

Cooperation Projects

-ZF Group (China) announced that it signed a strategic cooperation agreement with automotive intelligent vision system developer CalmCar to develop cost-effective APA (auto parking assist) and AVP (automated valet parking) systems. The systems will be adopted in production models of Chinese automakers in 2022. With the aid of CalmCar’s 360-degree surround view perception and ultrasonic radar perception technologies, ZF’s first AVP system that has four 192-degree surround-view fisheye cameras can recognize parking space and obstacles and help locate a vehicle indoors or outdoors. An automated parking route will be planned in real time to direct the vehicle along the specified route towards the target parking space where the vehicle will park automatically. This is the whole process of driverless parking in the last mile without need for parking infrastructure. (From a press release dated June 15, 2021)

Orders

-ZF announced that a current volume order worth several billion euros covers the supply of conventional, but primarily mild and plug-in hybrid variants of the fourth-generation 8-speed transmission (8HP). In addition, key components for pure electric drives such as power electronics and e-motors are also part of the scope of supply. The "Modular eDrive Kit" comprises three power classes as well as the "Premium" (800V SiC) and "Basic" (400V) segments. Three e-drives comprising the "Modular eDrive Kit" are about to enter series production: a "Low" drive solution below 100 kW, a "Mid" drive solution up to 200 kW - both based on ASM or PSM machines and an inverter with 400-volt technology - and a "High" solution with an output of over 200 kW, which will enter series production in the second half of 2022 and combines a PSM machine with a silicon carbide-based inverter with 800-volt technology. The eConnect is a flexible solution for all-wheel drive vehicles. The system, which is designed to be installation space-neutral, leaves the second axle uncoupled to save energy as long as it is not needed. This reduces mechanical drag losses by up to 90 percent. If required, eConnect can engage the second drive within milliseconds via a claw coupling without any losses. (From a press release on September 6, 2021)

-ZF launched its next generation mid-range radar to support advanced ADAS safety functions and enhance the available ZF coASSIST semi-automated system on the Dongfeng Aeolus Yixuan MAX in China. ZF’s mid-range radar is a high-performance 77GHz front radar designed to meet 2022+ Euro NCAP 5-Star Safety Ratings and enable semi-automated driving functions. It is scalable to vehicle manufacturer needs and offers three operation modes designed to deliver enhanced sensing performance depending on the speed of the vehicle. Each mode provides the proper combination of range and resolution tuned for the driving situation: from highest resolution in the short range at low speeds to support features like pedestrian automatic emergency braking (AEB) to long range object detection at high speeds to enhance driving functions like adaptive cruise control (ACC). The enhanced coASSIST system on the Aeolus Yixuan MAX features ZF’s S-Cam 4.8 camera – one of the very first monocular cameras with a 100-degree field of view. The combination of Mid-Range radar and advanced camera technologies help provide the accurate fusion of sensor data for augmenting advanced safety and semi-automated functions. (From a press release on September 2, 2021)

-ZF announced that it has received a series order for its 4D full-range radar from SAIC Motor. From 2022, ZF will be producing the radar sensors in China and delivering them to SAIC. The full-range radar perceives the vehicle environment in four dimensions, including the height, and is therefore as powerful as the optical sensor’s camera or LiDAR at a competitive price level. In combination with these technologies, the high-resolution radar can offer the necessary safety and reliability for partially to highly automated driving including level 4. A full-range radar has a much higher resolution than a mid-range radar, which typically only has twelve channels (three transmitters, four receivers). With the full-range radar from ZF, the number of channels is 16 times greater: Several MMIC chips (Monolithic Microwave Integrated Circuit) are combined so that a total of 192 channels are available. With an opening angle of +/- 60 degrees it is designed for a wide range of situations: from slow city traffic to driving on country roads and highways. At 350 meters, the range is well above the current state of the art. It uses the 77 gigahertz band and FMCW modulation (Fast Ramp Frequency Modulated Continuous Wave), which it shares with other ZF radar sensors. (From a press release on April 13, 2021)

-ZF announced that by the end of 2020, it has won orders for electric driveline components with a sales volume of EUR 14 billion over the next several years. ZF’s long-term strategic alignment will now be further accelerated in the areas of electronics, software, and autonomous driving. For the first time, ZF also offers software products that customers can purchase independently of the hardware. In addition to software, hardware components – such as the modular ZF ProAI high-performance computer – are in high demand because powerful central computers will replace many small control units in next-generation cars. ZF will supply several million ZF ProAI units to both passenger car and commercial vehicle OEMs. (From a press release on March 18, 2021)

-ZF announced that it has brought its partially automated Level2 + driving system "coASSIST" into series production with Dongfeng Aerolus Yixuan.  With the world's first introduction of the ZF coASSIST, the most affordable Level2 + system in the industry comes onto the market. Above all, it offers advanced safety and convenience functions.  In the future, the coASSIST will also be equipped with the medium-range ZF’s Gen21 radar. The system was developed in cooperation with the company Mobileye; which is supplied by the EyeQ camera technology. ZF also uses short-range radars from Hella for the coASSIST. The combination of these modern camera and radar sensor units with a central control unit enables functions such as adaptive cruise control, traffic sign recognition, lane change and lane keeping assistants, as well as motorway and traffic jam assistants. (From a press release on February 23, 2021)

-ZF announced that its brake control solutions will be established as standard in Volkswagen’s ID.3 and ID.4 models.  Volkswagen Group’s order for the new ZF brake control system covers several million vehicles – starting with the recently introduced ID.3 and ID.4 and continuing with future models based on the manufacturer’s MEB e-drive platform. With an optimized software interface, ZF's new braking system can be easily integrated in and interlinked with the electronic architecture of Volkswagen vehicles. The ZF system also supports driver assistance features such as automatic emergency braking. In addition, ZF's solution replaces previously necessary mechanical components with software functions, which saves both weight and costs. ZF brake control is based on a combination of the company’s electronic brake booster (EBB) and its latest generation EBC470 electronic stability control (ESC). It meets stringent safety standards set by the European road safety association EuroNCAP. (From a press release on January 26, 2021)

New Products

-ZF Friedrichshafen AG (ZF) announced that it has developed a highly scalable and modular inverter architecture that allows OEMs maximum flexibility in both 400V and 800V voltage classes. The modular inverter platform is not dependent on predefined semiconductors and is designed to support vehicle manufacturers in bridging the Silicon-to-Silicon Carbide transition while also being prepared for future semiconductor trends. These inverter innovations are already being readied for next-generation e-drives that will be ready for production by 2025. The control board within an inverter is the home of the inverter software. It is one of the key components of an inverter, because the gate drive technology is responsible for safety features, performance, efficiency and total range of the EV that can be squeezed out of the power semiconductors. The new inverter generation brings these hardware and software optimization functionalities to customers to realize faster power semiconductor switching times, better short circuit protection and much more. ZF has built up significant knowledge in this area both independently and with strong partners such as WOLFSPEED. (From a press release dated January 4, 2022)

-ZF Friedrichshafen AG (ZF) announced that is providing the foundation for autonomous driving through its sensor suite that includes its world-leading light vehicle forward-facing camera business featuring the S-Cam4.8, among the very first mass-produced single-lens 100-degree field of view camera that is now being introduced across a range of customers. ZF is introducing its next-generation radar portfolio that includes Mid-range radar and Full-Range Radar options, offering this key sensor in highly effective and affordable options and radars with enhanced sensing range and resolution. ZF’s Next Generation radar family includes options with advanced 3-D antennas as well as systems with remote radar heads that feed data into a central processor for 360- degree sensing at affordable costs. ZF’s sensor suite also includes LiDAR options to provide a third sensor for sensing the environment in more detail offering redundancy to the camera and radar. Working with its partner Ibeo, it will assist in the introduction of the solid-state IbeoNEXT LiDAR beginning in 2022 and have future LiDAR generations under development that balances excellent performance at a reasonable cost. (From a press release dated January 4, 2022)

-ZF Friedrichshafen AG (ZF) ZF Friedrichshafen AG (ZF) announced an advanced fleet management tool “ZF Bus Connect”, a new product that caters to the needs of bus fleet operators. The solution was developed in the ZF Group's Data Venture Accelerator, which is a worldwide hub for digital business within ZF's global research and development. ZF Bus Connect is developed for city buses and coaches with both electric and combustion engines or hybrid systems also in a mixed fleet. The user can check every aspect of the vehicle, including a live view of vehicle locations in real-time, observe current energy or fuel consumption, check the status of battery charge or maintain the status of the vehicles parts, brake wear and other system messages. It covers three areas: the on-board unit in the vehicle, the cloud, and the web-based portal for data analytics. Fleet operators can purchase this all-in-one solution from ZF as a package or to connect to the cloud solution with their compatible on-board unit and access the information via the portal as a third-party solution. (From a press release dated November 23, 2021)

-ZF announced that it will offer 800V components for electric vehicles (EVs). It is addressing the design trend of high-voltage vehicle power supplies with the development and production of corresponding components for the electric driveline. At the core is power electronics using silicon carbide as a semiconductor. It has been supplying 400-volt technology for volume production, now, it is preparing the start of production for 800-volt applications to address market of future premium electric or electric sports cars. For the first time in vehicle production, ZF is using new chip technology: Instead of silicon transistors, silicon carbide components are used, reducing internal switching losses in power electronics. As power electronics have a very high energy throughput during electric driving and recuperation, the efficiency of the entire electric driveline increases – with a positive effect on the range. (From a press release dated March 9, 2021)

Domestic Investments

-ZF Friedrichshafen AG (ZF) announced that it will continue to invest in China to realize carbon peak-out and carbon neutrality as well as to develop the electric vehicle (EV) market in China. To supply completely localized powertrains to vehicle manufacturers, ZF will begin operations of two plants in Hangzhou and Shenyang to produce electric drive systems in 2022 and 2023, respectively. In the field of smart systems for commercial vehicles, the company will release OnGuardMAX automatic emergency brake system for commercial vehicles in China. In the area of vehicle motion control, it will realize more vehicle control functions through software utilization. In addition, the company will reduce energy consumption and emissions through lightweight design and other methods. (From a press release dated September 17, 2021)

-ZF Friedrichshafen AG (ZF) announced that it held an opening ceremony to celebrate the start of operations of a manufacturing site for commercial vehicle parts in Jiaxing, a city in Zhejiang Province. The site has a total floor area of about 60,000 square meters and is expected to accommodate 420 employees by the end of 2021. It will focus on the development and production of a number of core products, including commercial vehicle transmissions, electro-hydraulic power steering systems, electric central drive systems, electric axle drive systems, power module assemblies, low-floor axles and next-generation mobility solutions. The site will be managed by two corporate entities. Specifically, ZF Commercial Vehicle Technology (Jiaxing) Co., Ltd. will assume the function of ZF’s China headquarters for the Commercial Vehicle Technology Division. The company will also engage in sales of truck transmissions. The other company, named ZF Drivetech (Jiaxing) Co., Ltd., will be responsible for developing, manufacturing, assembling and selling products. It will also provide after-sales support to customers. During the opening ceremony, ZF also launched three new products – the CeTrax CP electric central drive system, the ConAct pneumatic release cylinder for AMTs (automated manual transmissions) and the AirtracX chassis suspension system. (From a press release dated June 18, 2021)

-ZF Friedrichshafen AG (ZF) announced that its subsidiary ZF Electric Mobility Technologies (Shenyang) Co., Ltd. began construction of an electric drive system manufacturing plant. With an investment of CNY 1 billion, the new plant is set to begin operations in 2023. The plant will be located in the Tiexi District, Shenyang City, Liaoning Province, covering an area of 50,000 square meters. The building area will be 31,000 square meters. The production, assembly and testing of motors, electric controls and electric drive systems will be carried out at the plant, which will offer new energy vehicle (NEV) electric drive components and systems to local and international automakers. The products manufactured at the plant will be used in the NEV platforms of several mainstream automakers. (From a press release dated April 8, 2021)