Automotive supplier ZF is expanding its production of electric axle drives at its Saarbrücken plant in Germany. The company announced plans to manufacture two additional electric axle drives for European carmakers, with series production expected to begin in 2025.
This follows ZF’s earlier commitment to transform the Saarbrücken site into a key hub for electric drives, backed by a significant investment in the range of hundreds of millions of euros. Production of the first electric axle drive commenced this year, with European manufacturers as the primary customers.
ZF’s Saarbrücken site manager, Andreas Hubbuch, highlighted the importance of this expansion, noting that it marks a crucial step in the plant’s transition to electric mobility. He emphasized the need for consistent implementation of planned measures to maintain the site’s long-term international competitiveness.
The investment in new, advanced production lines is expected to secure around 300 jobs in Saarbrücken. Markus Schwabe, Head of Business in the Electrified Drive Technologies division, stated that these investments are key to the company’s strategy of enhancing competitiveness at its German locations.
However, Schwabe also acknowledged that structural adjustments will be necessary, as the shift to electric mobility involves lower added value compared to traditional vehicle manufacturing. The Saarbrücken plant, one of ZF’s largest facilities with approximately 10,000 employees, is not immune to the company’s broader restructuring efforts. In July, ZF announced significant job cuts as part of a strategy to increase the competitiveness of the site.
Measures include optimizing machine usage through flexible work arrangements and implementing partial retirement programs to gradually reduce the workforce in a socially responsible manner. Currently, the Saarbrücken plant produces 8-speed automatic transmissions, catering to a range of vehicles including conventional, mild hybrid, and plug-in hybrid models.
