ZF Friedrichshafen AG Business Report FY2010

Business Highlights

Financial Overview

(in million euros)
  FY2010 FY2009 Rate of change (%) Factors
Sales 12,907 9,371 38 -
Sales by Segment (Automotive related segment)
Car Driveline Technology 2,254 1,647 37 -
Car Chassis Technology 2,705 1,624 39 -
Commercial Vehicle and
Special Driveline Technology
1,676 1,166 44 -
Off-Road Driveline Technology and
Axle Systems
1,693 1,128 50 -
Powertrain and Suspension Components 2,564 1,832 40 -
Rubber-Metal Technology - 378 - -
Electronic Components 266 208 28 -
Steering Technology
(ZF Lenksysteme GmbH)
1,501 1,099 37 -

Business Overview

Car Driveline Technology
-The Saarbrucken location reported the largest increase, 41%, over 2009. The division produced about 1.3 million passenger car transmissions.
-The ZF Getriebe GmbH plant in Saarbrucken was able to sell about 1,055,000 automatic transmissions. This corresponds to sales of 1,937 million euro.
-With 181,000 manual transmissions and dual clutch transmissions delivered, the Brandenburg plant posted a 15% increase over 2009.
-The Shanghai plant in China produced 100,000 5-speed and 6-speed automatic transmissions in the year under review. This reporesents an increase of 8%.

Car Chassis Technology
-The plants in Changchun and Shenyang, China, as well as in Tuscaloosa, Alabama, and Chicago, Illinois, USA, considerably exceeded sales and volume forecasts. Production start-ups were successfully launched in the axle plants in Duncan, South Carolina, USA; Lebring, Austria; Shenyang, China; and Rayong, Thailand.
-The integration of Rubber-Metal Technology as the forth business unit in the division was successfully completed in 2010. The new Rubber and Plastics business unit also noticeably benefited from the unexpectedly rapid recovery in vehicle production figures. With 507 million, sales were up 29% compared to 2009.
-Electrically swichable suspension mounts are increasingly in demand for compact but powerful diesel generator sets.
-In 2010, significant new orders for plastic pedal systems were placed as well as an initial order that marks the business unit's entry into the heavy growth market of alternative power generation.

Commercial Vehicle and Special Driveline Technology
-The Truck Driveline Technology -In 2010, the division's performance benefited from business trends exceeding expectations. The recovery in non-European markets was particularly noticeable. Overall, sales increased by 44% to 1,676 million euro compared to the previous reporting year.unit had to absorb sales declines of 29%, down to 705 million euros.

Off-Road Driveline Technology and Axle Systems
-After the dramatic collapse of the economy in 2009, the division experienced an unexpected sense of euphoria on the markets. With grouwth of 50% in 2010, sales of 1,693 million euro were reported.
-Construction Machinery Systems posted unexpectedly high sales, coming in at 531 million euro. The business unit was able to make considerable gains in market shares against competitors both in the transmission and axle segments.
-The Agricultural Machinery Systems business unit was able to boost its sales by 9% to 295 million euro.

Powertrain and Suspension Components
-Sales in this division grew by 40% to 2,564 million in 2010. During the crisis, the division implemented considerable process improvements and sustainable cost savings, all of which bore fruit in 2010.
-The Powertrain business units reported considerable sales growth of 46% to 1,356 million. The individual business units both in the passenger car as well as in the commercial vehicle segment enjoyed above-average sales as a result of the market recovery. This good news was reflected in domestic and foreign market figures.
-The business -The NAFTA region, in particular, made strong gains above market average also due to important customers there seeing sales increases.under the Suspension division posted sales of 1,007 million euros, a considerable decrease of 24%.
-The Asian market exceeded growth forecast figures. China became the largest production location for clutches in the division, with more than 3 million units procduced.
-Production of the new torque converter generation shot up in 2010 due to the outstanding market acceptance of the 8-speed automatic transmission.

ZF Lenksysteme GmbH
-2010 was the most successful year so far in the 12-year history of the joint venture. Sales rose by 37% to 3,002 million euro compared to the previous reporting year, even rising 14% above pre-crisis levels.
-Through a gain in market shares, ZF Lenksysteme GmbH was able to grow above market average.
-All business units and regions contributed to this sales growth although the momentum overseas was significantly greater than on the domestic market.
-Business trends in China and Brazil as well as in ther USA were particularly encouraging.
-High demand of the electric power steering system, the Servolectric, led to the localizing of production lines in the USA and China, which further improved the company's global position.


-Followings are major contracts from a press release in 2010.
Maker/ Model Products
Cadillac CTS Coupe, Chevrolet Cruze and Chevrolet Traverse Chassis components
Mercedes-Benz E-Class T-Model

Amplitude-selective dampers by ZF Sachs,

Rack-and-pinion steering system or speed-dependent power steering, andServotronic and a steering pump by ZF Lenksysteme

BMW 5 Series Gran Turismo

8-speed automatic transmission,

ARS(R) Active Roll Stabilization system and CDC (Continuous Damping Control) damping system, and

Speed-sensitive power steering Servotronic or optional active steering systems

Ford Explorer Chassis components
Cadillac SRX, Buick Lacrosse and Buick Regal CDC dampers
Jaguar XJ

6-speed automatic transmission,
Speed-sensitive power steering Servotronic,

Steering pump for V8 gasoline engines, and

Electrically adjustable steering column by ZF Lenksystem

Volkswagen Golf/Golf GTI

Twin-tube dampers,


Dual-mass flywheel, and

Electric power steering Servolectric


Vector Drive rear drive unit,

6-speed automatic transmission,

Speed-sensitive power steering Servotronic,

CDC Dampers,

Electronic and Chassis components, and

Active hydraulic roll stabilization system ARS

Porsche Panamera 7-speed dual clutch transmission,
CDC damper,
ARS (Active Roll Stabilization system),
Speed-sensitive Servotronic,
Varioserv adjustable vane pump, and
Plastic pedal system
Volkswagen Amarok Rack-and-pinion steering system,
Ecolite 6-speed manual transmission, and
Front-axle drive unit
Hyundai Motor Company Equus Automatic transmissions and major suspension parts
Alfa Romeo Giulietta Twin-tube dampers,
Spring strut,
Suspension and electronic components, and
Electric Power Steering System Servolectric
Aston Martin Rapide 6-speed automatic transmission,
the Electric Power Steering System Servotronic, and
Steering pump
Audi A1 Gearshift system,
Suspension and electronic components,
Engine mounts,
Clutch components, and Dual-mass flywheel
Audi A8 8-speed automatic transmission,
Electronic damper system CDC by ZF Sachs,
Suspension and electronic components,
Shift-by-wire gearshift system,
The Electric Power Steering System Servotronic, and
The active steering system and a controlled vane pump or the variable-capacity pump Varioserv by ZF Lenksysteme are available as optional
BMW 5 Series 6-speed manual transmission or 8-speed automatic transmission
BMW 7 Series ActiveHybrid 8-speed hybrid transmission,
DynaStart, the electric motor by ZF Sachs,
Suspension and electronic components,
the Electric Power Steering System Servotronic,
CDC dampers, and
the electronic Active Roll Stabilization system (ARS)
Mercedes-Benz E-Class Convertible Amplitude-selective dampers
MINI Countryman Axle modules,
Suspension components, and
Hydraulically damping control-arm mounts
Porsche Cayenne/Volkswagen Touareg Axle drives,
the electronic damper system CDC,
Suspension, Electronic components,
Plastic pedals, and
the Electric Power Steering System Servotronic
Volkswagen Sharan The dual-mass flywheel,
the clutch and, optionally,
the Nivomat
BMW 3 Series 6-speed manual transmission,
6-speed automatic transmission as an option,
ZF Sachs vibration damper, and
Servolectric electric power steering system from ZF Lenksysteme
Beiqi Foton Motor The Aumark light truck 5S 400 manual transmission
Iveco for Daily 35S11 AGile vans Automatic 6-speed transmission eTronic
Land Rover
8-speed automatic transmission
Jeep Grand Cherokee Nivomat self-leveling dampening systems by ZF Sachs, along with its axle systems
VDL Bus & Coach Citea CLF 120 6-speed automatic transmission, and
Axles and suspensions
Saab 9-5 Electronic damping system CDC (Continuous Damping Control)

Business Restructuring

-The Company realigns its business activities at the beginning of 2011. The previous five divisions will be reclassified in a four-division model. The realignment with the four divisions entails the merging of the majority of the German companies under the name of ZF Friedrichshafen AG. This includes ZF Getriebe GmbH, ZF Lemforder GmbH, ZF Passau GmbH, and ZF Sachs AG. (From a press release on December 9, 2010)


R&D Expenditure

(in million euros)
  FY2010 FY2009 FY2008
Total 646 663 697

R&D Structure

-Approximately 5,400 employees work for ZF Research and Development worldwide. Of those, about 760 engineers and technicians work at the ZF Group's Corporate Research and Development department in Friedrichshafen, Germany, as well as an additional 160 in Pilsen, Czech Republic; Shanghai, China; and Tokyo, Japan. ZF intends to increase its numbers of research and development personel abroad by hiring qualified engineers therer to help address future R&D needs. In the year under review, 646 million euro was invested in research and development, representing 5% of sales and thus the ZF Group's target for research and development expenses.

-New Asian headquarters and R&D center built in Shanghai officially started operations on June 8, 2010. The new headquarters office is 6,000 square meters, and the R&D center is 4,000 square meters in size. When the planned second phase of construction is completed in the future, the floor space will be increased by an additional 20,000 square meters. The R&D facility now employs 100 people, but the company is planning to increase the number to 300 by 2013.

R&D Facilities

Main Engineering Centers Friedrichshafen, Germany
Engineering Centers Plzen, Czech Republic
Shanghai, China
Tokyo, Japan


-As in previous years, ZF was also able to maintain its position among the top patent applicants in Germany in 2010. At over 900, the number of internal patent applications in considerably higher than in the last reporting year.  Innovative activities were focused on transmission and hybrid technology.

R&D Activities

-Three German companies - ZF, Continental and ads-tec - are working gather to develop lithium-ion batteries for hybrid commercial vehicles. The collaboration is within the 'Future goes Electric (FUEL)' project sponsored by the German Federal Research Ministry of Education and Research. The objective of FUEL comes to an end in the summer of 2011. Continental takes the lead in the development and manufacturing of lithium-ion batteries and components. ZF is responsible for integrating the energy storage system into the overall hybrid system. ads-tec is responsible for automated production and testing technologies. (From a press release on May 10, 2010)

Technological Alliance

-The Company is entering the market for Telematics solutions in a strategic alliance with Intel Corp. of USA. The two companies will develop a hardware and software platform called "openmatics", with initial focus on the applications to city buses. The product launch is targeted for 2011. (From a press release on March 1, 2010)

-The Company and Funkwerk eurotelematik GmbH, a German-based provider of telematics solutions, have teamed in developing applications for Openmatics. Openmatics is a telematics system developed by ZF and Intel Corp. of USA. An electronic tachograph for data recording and an order tracking system are the first applications for fleet management jointly developed by ZF and eurotelematik. (From a press release on August 31, 2010) 

Investment Activities

Capital Expenditure

(in million euros)
  FY2010 FY2009 FY2008
Overall 582 516 939
Car Driveline Technology 164 136 187
Car Chassis Technology  77 64 71
Commercial Vehicle and Special Driveline Technology 45 87 258
Off-Road Driveline Technology and Axle Systems 79 42 89
Powertrain and Suspension Components 87 60 168
Rubber-Metal Technology  - 7 18
Electronic Components 4 7 2
Steering Technology
(ZF Lenksysteme GmbH)
84 52 82

Investment Activities

-In 2010, the Company opened an assembly plant in the industrial center of Pune, which will eventually turn out approximately 10,000 construction vehicle axles and transmissions annually. A further ZF assembly plant in Pune is currently being constructed, which will begin assembling truck transmissions in 2010. The Company currently has a 29% stake in Sona Somic Lemforder Ltd., which produces car chassis components in Delhi, Uttaranchal and Chennai; a 26% stake in ZF Steering Gear (India) Ltd., which manufactures commercial vehicle steering systems in Pune; and a 50% stake in ZF Electronics TVS (India) Private Ltd., which produces electronic components in Madurai. Over the past 3 years, ZF has established ZF Lenksysteme India Private Ltd. headquartered in Pune, 3 service locations of ZF Services GmbH (in Raipur, Bangalore and Pune), and ZF India Private Ltd., also in Pune. The assembly facilities of the ZF Off-Road Driveline Technology and Axle Systems Division (with approximately 2,400 sq m of production space) and those of Commercial Vehicle, Special Driveline Technology Division (with approximately 5,000 sq m of production space) have been or are currently being developed under their auspices. (From a press release on January 19, 2010)

-The Company has inaugurated a heavy truck transmission plant in Pune, India. In the medium term, the new plant will produce approximately 25,000 ZF-Ecomid 9-speed transmissions annually. (From a press release on October 13, 2010)

-The Company has expanded its production capacity at the plant in Saarbrucken, Germany because of the strong demand for 8-speed automatic transmissions. This will lead the construction of an additional production hall at a cost of approximately 10 million euros and to the creation of 150 to 200 additional jobs there. Starting in the spring of 2012, the new facility will produce trigger boxes for automatic transmissions, which will be used not just for transmissions from the plant in Saarbrucken, but also for those made by the ZF transmission plants in the US and China.  (From a press release on November 5, 2010)