ZF and Wolong Electric Plan Joint Venture for Production of Electric Motors and Components

·                ZF awards Wolong Electric a substantial production volume order for electric motor sub-components

·                Partnership strengthens ZF’s engagement in the world’s largest electromobility market

Schweinfurt/Shangyu (Zhejiang Province). ZF Friedrichshafen AG and China’s Wolong Electric Group Co., Ltd are stepping up their existing cooperation. The two companies have signed an agreement to establish a joint venture that will produce components and electric motors for automotive applications. This partnership will enhance the ZF product portfolio and further improve competitiveness in electric driveline systems.

“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,“ says Jörg Grotendorst, Head of ZF’s E-Mobility Division.

The joint venture will operate under the name Wolong ZF Automotive E‑Motors Co Ltd. and manufactures electric motors and components for use in ZF driveline systems and the open market. An initial success of this partnership is the award of a major series production contract for electric motor components for hybrid and electric drives. Electrified drivelines contribute significantly to reduce CO₂ emissions from road traffic.

The joint venture headquartered in Shangyu, Zhejiang Province, China, will provide optimal access to the Chinese market, leverage joint purchasing potential and focus on future business. By 2025, the company is expected to employ up to 2,000 staff.

Dr. Holger Klein, Member of Board of Management, ZF Friedrichshafen AG, said, “Agreement to deepen our partnership with a Chinese company and establish a new joint venture to dedicate in the production contract for electric motors, is one of our solid steps in realizing our commitment to invest in China, and our determination to make ZF a significant contributor in the electrification and sustainable mobility in this market. By having a joint venture with a successful Chinese company，we are transforming our company towards a more agile organization, to serve the local market from the region without time delay in decision making process.“

"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. We hope that this joint venture will become a global leader in new energy automotive motors,” says Jian Cheng Chen, Chairman of Wolong Electric.

Since January 2016, ZF has bundled its electromobility activities in the E-Mobility Division headquartered in Schweinfurt, Germany. More than 9,000 employees work in this division, spread across various locations around the world.

Caption:

1)      Dr. Holger Klein, Member of Board of Management (left), ZF and Chen Jiancheng, Chairman of Wolong Electric (right).

2)      Jörg Grotendorst, Head of ZF’s E-Mobility Division (3^rd from left), Chen Jiancheng, Chairman of Wolong Electric (2^nd from left), Wu Jianbo, CFO of Wolong Electric Group (1^st from left) and Dr. Ye Guohong, Vice President, Head of E-Mobility Asia Pacific (1^st from right) sign the agreement together.