Bosch is to take over completely electric power steering specialist ZF Lenksysteme (ZFLS) which until now has been operated as a 50-50 joint venture by the two rival tier one suppliers.
An agreement was signed today (15 September) between Robert Bosch and ZF Friedrichshafen for a complete take-over.
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ZFLS, based in Schwäbisch Gmünd, Germany, employs about 13,000 people in eight countries and develops, produces, and sells steering systems for passenger cars and commercial vehicles worldwide. It booked EUR4.1bn in sales in 2013 and operates in 20 locations throughout Europe, US, China, India, Brazil, and Malaysia.
The deal is subject to approval by the antitrust authorities and purchase price has not been revealed.
“With its complete takeover of ZFLS, Bosch is strengthening its ability to actively shape the future of mobility. The company is a technological leader in the growth area of electric power steering, and precisely this is the core technology for automated driving, for more efficient vehicles, and also for electric cars,” said Bosch chairman Volkmar Denner.
ZFLS generates about 60% of its total revenue from electric power steering systems.
Apart from saving fuel compared with conventional hydraulic power steering (up to 0.8 litre/100km for a two-litre mid-size car, Bosch claims), electric systems also reduce emissions by up to 14g CO2/km and are essential for many driver assistance systems such as lane-keeping and start-stop coasting because steering behaviour remains the same with the vehicle engine running or not.
