Foxconn to take 50% stake in ZF axle system unit

BERLIN -- Taiwan's Foxconn will acquire a 50 percent stake in ZF Group's axle system assembly unit, creating a joint venture aimed at growing automotive and supply chain opportunities, the companies said. The joint venture with Foxconn is part of ZF's strategy to grow specific business areas beyond current limits with external partners' support, the German company's chief executive, Holger Klein, told Reuters. It needs fresh capital," which is why ZF had been looking for a partner, said Klein. The joint venture agreement is expected to become effective within six to nine months of signing pending regulatory approvals. ZF ranks third on the Automotive News Europe list of top 100 global suppliers, with sales to automakers of $39.3 billion in 2021.