ZF Friedrichshafen and China’s Wolong Electric Group said they were boosting existing cooperation and had signed an agreement for a joint venture to produce components and electric motors for automotive applications.
This partnership will enhance the ZF product line and further improve competitiveness in electric driveline systems, the German supplier said in a statement.
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The JV is named Wolong ZF Automotive E-Motors and manufactures electric motors and components for ZF driveline systems and external sale.
An initial success was the award of a “major series production contract” for electric motor components for hybrid and electric drives.
The JV, based in in Shangyu, Zhejiang Province, China, will provide access to the local market, leverage joint purchasing potential and focus on future business. By 2025, the company is expected to employ up to 2,000 staff, ZF said.
“The partnership with Wolong, a key player of electric motors and components in the Chinese market, is a great next step in further strengthening our electric mobility strategy. With the joint venture we extend our value chain for electric motors to include sub-components and it gives us even better access to customers and suppliers in China,” said Joerg Grotendorst, head of ZF’s e-mobility division.
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By GlobalData“We are certain that new energy vehicles will take a very large share in the future market, and this will bring unprecedented development opportunities for both of us. The joint venture company with ZF will be the first step, aiming to provide motors and their components for ZF and the general market,” added Jian Cheng Chen, chairman of Wolong Electric.
Since January 2016, ZF has grouped its electromobility activities into the e-mobility division based in Schweinfurt, Germany.
About 9,000 people work in this division, spread across various global locations.
