Bosch to fully acquire power steering JV with ZF
Most of us know the ZF name through its automatic transmission business, and God know how many times we’ve sang praises of its 8HP slushbox currently fitted across the BMW line-up. ZF is short for Zahnradfabrik, which translates from German as ‘gear factory’.
A less-known division of ZF’s business is that it has also been in the steering business since 1932. In 1999, ZF Friedrichshafen AG (ZF Group) joined forces with Robert Bosch GmbH to set up a 50:50 joint venture for the production and development of power steering systems. The joint venture company is known as ZF Lenksysteme GmbH (ZFLS) and is based in Schwäbisch Gmünd.
Employing more than 13,000 associates in eight countries, ZFLS develops, produces, and sells steering systems for passenger cars and commercial vehicles worldwide. In 2013, it registered sales of approximately 4.1 billion euros. With a total of 20 locations, the company is active in the world’s most important automotive markets. Alongside locations in Europe, the U.S., and China, ZFLS also produces in India, Brazil, and Malaysia.
Last week, Bosch and the ZF Group signed an agreement that will see the former increase its stake in the ZFLS to 100%. The transaction is subject to approval by the antitrust authorities. It has been agreed that the purchase price will not be disclosed.
In recent years, ZFLS has made much strides in the development of electric power steering systems that are fast gaining popularity in modern cars. Besides being more energy efficient, electric power steering also makes integration of autonomous driving aids such as active lane control much easier. Currently, EPS systems account for 60% of ZFLS’ total revenue.
“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 Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH.
