ZF is among the largest suppliers in the automotive industry, but has faced serious economic problems in recent years. However, assistance from BMW will not halt planned layoffs.
ZF Friedrichshafen and BMW signed a lucrative contract, which the German component manufacturer desperately needed.
German automotive component supplier ZF Friedrichshafen, which has been facing significant financial challenges, has secured a long-term agreement with the BMW Group. The deal centers on the supply and further development of automatic transmissions for passenger vehicles. According to the company, the collaboration is expected to continue into the “late” 2030s, primarily focusing on the continued deployment and technical evolution of ZF’s eight-speed automatic transmission, the 8HP.
ZF emphasized that the agreement encompasses not only a series of deliveries but as well further development of solutions designed to meet the demands of electrified powertrains – aiming to increase efficiency, reduce emissions and maintain broad applicability across various drive systems. The automotive industry is undergoing a rapid transition towards electrification, making such adaptable technology crucial for suppliers.
The contract’s value was communicated as “several billion euros.” Neither ZF nor BMW disclosed the precise amount, fulfillment schedule, or anticipated production volumes. This phrasing suggests the final financial scope will depend on demand and the mix of powertrains BMW introduces to the market over the contract’s duration.
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According to available information, the agreement primarily focuses on automatic transmissions for internal combustion and hybrid powertrains, an area expected to maintain stable production volumes for several years despite the ongoing shift to electric vehicles. ZF and BMW signed the agreement on February 6, 2026.
However, the deal does not alter previously announced cost-cutting measures. ZF stated that the new contractual commitment will not impact planned layoffs, which are part of a broader restructuring effort. The company is under pressure from high obligations related to acquisitions and weaker order intake from the automotive industry. It had previously announced that approximately 11,000 to 14,000 jobs could be eliminated in Germany by the end of 2028, with some positions already removed and reduced working hours implemented in certain facilities.
ZF is one of the largest suppliers in the automotive industry. According to company data, it employs approximately 161,600 people in 30 countries and generated revenue of around €41.4 billion in 2024. The company plans to publish its financial results for 2025 on March 19, 2026.
