ZF Friedrichshafen Welcomes New CEO Amid Job Cuts and Restructuring Challenges
ZF Friedrichshafen, a major automotive supplier, is set to welcome Mathias Miedreich as its new CEO this Wednesday, replacing Holger Klein. This change comes amidst significant challenges, including job insecurity, financial losses, and restructuring demands from the works council.
The works council has called for a change in direction, citing past restructuring failures and employee worries about job security and wages. ZF Friedrichshafen, employing around 50,700 people in Germany, is grappling with industry-wide struggles and economic headwinds.
Management and the works council are currently engaged in discussions about the realignment of the drive division, with results expected by the end of September. The company reported a loss of 195 million euros in the first half of the year and anticipates a full-year loss, marking the second consecutive year in the red.
ZF Friedrichshafen's powertrain division, 'Division E', is a particular concern due to high costs and low margins in the traditional transmission business and delayed e-mobility rollout. The company is considering partial partnerships to strengthen competitiveness but has not named any specific potential partners yet.
Global car and light commercial vehicle production has fallen by 30% since 2018, directly impacting ZF Friedrichshafen's business. The company plans to cut thousands of jobs in Germany by 2028, with 5,700 already gone since early 2024. The company's net debt stands at around 10.5 billion euros, with high interest payments affecting investment in future products.
Mathias Miedreich's appointment as CEO comes at a critical time for ZF Friedrichshafen. With significant challenges ahead, including job cuts and financial losses, his leadership will be crucial in navigating the company through these tough times and implementing successful restructuring efforts.
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