<Outline>
- ZF tapped the Chinese market in conjunction with VW's move into the industry. ZF has expanded its operations in China since 1994. By collaborating with major Chinese commercial vehicle manufacturers, the company looks to further expand the Group's presence in the China. 

<Highlights by segment>
Driveline Systems :
Transmissions for heavy-duty trucks
- In 2007, ZF Drivetech (Hangzhou) Co., Ltd., which is the Company's wholly owned subsidiary making transmissions for heavy-duty trucks, sold its 1,000th "ZF Ecosplit Classic Line" 16-speed transmission. The subsidiary has the capacity to manufacture approximately 30,000 transmissions per year and generates sales of 200 million yuan.
- In 2008, ZF Drivetech (Hangzhou) started producing 9-speed transmissions for heavy-duty trucks.

Bus driveline systems
- In 2007, ZF Drivetech (Suzhou) Co., Ltd., a manufacturer of bus driveline systems, won a supply agreement to provide 1,200 sets of axle systems for non-step buses built by Beijing Public Transport Holdings,Ltd. ZF Drivetech (Suzhou) is a wholly owned subsidiary of ZF.
- In 2008, ZF Drivetech (Suzhou) plans to supply 6-speed hydraulic control transmission systems. These transmissions will be installed in buses used for sightseeing and long-distance driving of more than 10 kilometers.

New collaboration with local commercial vehicle manufacturer
- In November 2008, ZF and Zhengzhou Yutong Bus signed an agreement to form a strategic partnership in the areas of buses and their major components. Based on this tie-up, ZF intends to work closely with the bus manufacturer to develop and test new products and cultivate new markets.

- In September 2008 during the 62th IAA Commercial Vehicles 2008, ZF and Beiqi Foton Motor signed a strategic partnership agreement. Through this collaboration, ZF will supply the 5S400 manual transmissions to a new compact commercial vehicle model Beiqi Foton is developing. ZF will begin application development activities in October 2008, targeting a production launch in 2009. The agreement includes cooperation in the development of medium-duty trucks, pick-up trucks, automated transmissions, and hybrid vehicles. Beiqi Foton is a commercial vehicle manufacturer in the Beijing Automobile Group. Its lineup includes multi-purpose vehicles (MPVs), sport utility vehicles (SUVs), trucks, and buses.

Rubber Metal Products (ZF Bode Elastmetall) :
New subsidiary
- In December 2007, ZF Boge Elastmetall established ZF Boge Elastmetall (Shanghai) Co., Ltd., a wholly owned subsidiary in Shanghai to manufacture NVH products, which reduce noise, vibration and harshness coming from chassis and driveline systems.

Steering Systems (ZF Lenksysteme) :

Electric power steering (EPS) project
- ZF Shanghai Steering Co., Ltd. has launched the electric power steering (EPS) project in 2008, the subsidiary, which has been focusing on the production of hydraulic power steering systems, will be shifting to making electric power steering in steps.

R&D structure
- The company has an engineering center in Shanghai