Setback for Key German ZF Location as Major Client Shifts Focus to U.S. Procurement

The ZF facility in Saarbrücken is facing increasing challenges as a significant client appears to be redirecting its procurement efforts toward the United States. Recently, ZF Friedrichshafen, a leading technology company in the automotive supply sector, disclosed plans to reduce its workforce in Germany by up to 14,000 positions by 2028. Concerns were particularly acute at the Saarbrücken site, where management has confirmed the loss of at least 1,800 jobs.

During a press conference held on March 20, ZF reported substantial financial losses for the year 2024, prompting the CEO to reiterate the inevitability of the job cuts. The ongoing uncertainty at the Saarbrücken site has been exacerbated by reports that BMW, a primary customer, intends to source its transmissions for vehicles manufactured in the U.S. from ZF facilities located in America.

The Saarbrücken plant, which employs approximately 8,500 individuals, is the largest industrial employer in the Saarland region and serves as ZF's primary gearbox manufacturing facility. While ZF has reassured stakeholders of its commitment to the Saarbrücken location, the potential loss of major contracts could further complicate the situation.

According to recent insights from industry sources, BMW has indicated a preference to procure transmissions for its U.S. SUVs from its local ZF facilities rather than the Saarbrücken site. This decision is reportedly influenced by U.S. trade policies and tariffs implemented under previous administrations, raising concerns about the future viability of the Saarbrücken operations.

Despite the setbacks, ZF's management has indicated that they are not planning to sell the division that includes the Saarbrücken facility, although there are discussions about accelerating the restructuring process. The leadership acknowledges the emotional impact these developments have on employees, particularly in light of the ongoing changes within the electrified drive technologies division.

As these dynamics unfold, the implications for the Saarbrücken workforce remain significant. There are fears that the loss of key contracts could lead to further job reductions beyond the already confirmed cuts. Management at the site has expressed apprehension about how U.S. tariffs will affect market conditions, with uncertainty surrounding potential repercussions for the plant's operations.