The Future Is Electric: A Vision for Sustainable Mobility

Q: How is ZF Group shaping the future of the mobility industry beyond traditional automotive manufacturing? 

A: The automotive industry is undergoing a transformation driven by three major megatrends: electrification, software-defined vehicles, and autonomous driving. While some of these trends have been evolving for years, the software-defined vehicle is the most recent and rapidly growing trend. ZF Group is well positioned to address all three trends by offering the solutions our customers need. 

What sets us apart is our ability to provide complete turnkey systems or modular components that can be integrated into our customers’ own platforms. This flexibility allows us to support a wide range of needs, from full systems to tailored solutions, ultimately enabling clients to deliver innovative mobility products to the market. 

Q: How does ZF Group technology contribute to the broader transformation of transportation? 

A: One of our key strengths is our broad product portfolio, which covers both passenger and commercial vehicles. This allows us to serve not only the private sector but also public transportation through our dedicated commercial vehicle division. There is a natural transfer of technologies from passenger vehicles — where high volumes make innovation easier and more cost-effective — to commercial vehicles. A clear example are advanced driver-assistance systems (ADAS). These systems were once too costly to implement in low-volume commercial vehicles, but by first introducing them in passenger vehicles, we were able to scale the technology and eventually apply it to commercial fleets. 

Q: What recent innovations are ZF Group to become a leader in mobility transportation? 

A: Our software platform Cubix coordinates the vehicle’s longitudinal, lateral, and vertical dynamics. It manages suspension, braking, and steering through a unified software, allowing precise vehicle performance calibration tailored to customer needs. What makes Cubix especially powerful is its flexibility. It acts as middleware, enabling customers to build their own functionalities on top of it. This opens the door for innovation beyond our own development roadmap, empowering clients to create. 

Q: What market trends are driving ZF Group’s R&D priorities? 

A: Our R&D approach is driven by customer needs and their choice of powertrain. Whether a vehicle is powered by an internal combustion engine or electricity, we can adapt our solutions accordingly. For example, if a customer has a combustion engine-based platform, we can evolve it into a plug-in hybrid. Conversely, if a customer has a fully electric platform but is struggling with range limitations, we can implement a range extender. This solution uses a small combustion engine that acts as a generator to charge the battery, effectively extending the vehicle’s range. 

We are working with several customers on this type of solution. With the recent relaxation of electrification regulations in some markets, many manufacturers who invested in battery-electric platforms now face renewed consumer concerns over range. Developing entirely new combustion platforms is not viable for them, so range extenders offer an efficient way to address this market demand without abandoning their EV architecture. 

Q: How is ZF Group supporting the transition to fully electric platforms? 

A: We firmly believe that the future is electric, but the transition to full electrification is taking longer than initially anticipated. In the meantime, we are adapting to this gradual shift by developing products that balance fuel economy and emissions reduction, while still meeting customer expectations in terms of cost and performance. 

Ultimately, if customers are not buying EVs at dealerships, the market will not grow. The industry is facing significant challenges, and ZF Group is embracing them by adapting our roadmap and accelerating the development of solutions that have become necessary due to evolving market conditions. ZF is deeply committed to innovation and we invest about 8% of our US$50-billion global revenue into engineering. We consider ourselves a technology-driven company, and our goal is to continue introducing meaningful innovations to support the industry's transformation. 

Q: How does ZF balance safety, cost, and scalability when deploying new technologies in real-world applications? 

A: Our flexibility lies in our ability to support customers across different levels of autonomy and integration. Some customers have their own engineering capabilities and prefer to source only specific components from us, such as sensors. In these cases, we supply elements like engine control units (ECU), compute modules, cameras, or radars, particularly for autonomous driving systems. 

Other customers prefer turnkey solutions. They want a complete system that can be integrated into their vehicle and perform autonomous functions out of the box. We also support customers who already have their own systems and require complementary components or technical collaboration.

Q: How is ZF Group's software integration approach setting new standards for the connected, software-defined vehicle? 

A: ZF Group is redefining vehicle dynamics through the "Chassis 2.0." Through by-wire technologies such as steer-by-wire, brake-by-wire, and suspension-by-wire, we enable full control of these systems through software. This level of software integration opens up a vast range of possibilities. For example, because the physical systems are no longer mechanically linked, we can repurpose them through software. 

More importantly, this architecture allows developers, even those without automotive backgrounds, to create new functionalities tailored to different types of customers — be it for utility, luxury, or commercial vehicles. This flexibility, enabled by our software-defined vehicle strategy, is setting new standards in how mobility can be personalized and enhanced. 

Q: How are regulations influencing or supporting the electrification of the market? 

A: Regulation plays a crucial role in protecting end users and improving product quality. Regulatory demands often challenge businesses by forcing change. A key discussion today is whether all regulations — particularly those around electrification — are being implemented at a realistic pace. In some cases, the push for electrification has outpaced the industry’s ability to adapt. This has led to a recent regulatory relaxation to better align with what both the market and end customers are ready for. 

Q: How is ZF Group addressing sustainability through material choices, battery lifecycle management, and overall strategy? 

A: Sustainability is a key priority for us, and we approach it from both reactive and proactive angles. Our reactive approach focuses on maximizing recycling and reusing materials that have already been processed. This includes retrieving components like transmissions, torque converters, or electrical parts at the end of their lifecycle and remanufacturing them to perform almost like new. With targeted refurbishments, such as replacing worn elements, we can significantly extend their useful life and reduce waste. 

Our proactive approach involves what we call “engineering for sustainability,” which requires designing new products from the outset with sustainability in mind. This involves using materials and design approaches that allow for easier recycling, reuse, and remanufacturing. We aim to ensure that these components, once they reach end of life, can be disposed of or reintroduced into the value chain in a sustainable way. 

Q: How does technology, particularly Industry 4.0, help ZF Group manage sustainability and production processes?

A: Industry 4.0 and digitalization are crucial to how we manage and improve our production and sustainability efforts. With digitalization, we now collect detailed data on every part. This data allows us to anticipate a part’s durability and life expectancy more accurately. When parts return from the field, we analyze them to improve our designs, making parts last longer and be more reliable. Automation plays a key role by enhancing repeatability and quality consistency in manufacturing, reducing variability, and extending the life of components. 

In factories, managers now have access to extensive real-time data from assembly lines and machines. The challenge is no longer collecting data but using it effectively. This ability to leverage detailed information improves production efficiency, product quality, reliability, and even reduces costs. 

Industry 4.0 enables smarter use of raw materials and energy, resulting in less scrap and waste. These improvements feed directly into sustainability by increasing operational efficiency, leading to less energy consumption, less material usage, and less waste generation. 

Q: How does ZF Group tackle talent development and attraction challenges in Mexico? 

A: One of the biggest challenges is attracting and training the right talent to keep up with fast-changing technology demands. In Mexico, for example, we have a strong partnership with multiple colleges and a development center in Monterrey. Since we are a privately held company, we have the flexibility to invest in programs that nurture the next generation of engineers. In Saltillo, we run an internationally certified professional degree program to train technicians. Most of these trainees stay with us, which helps build a skilled workforce. We bring in fresh talent and continuously build up the skills of existing employees to meet the precision and innovation requirements of our industry. 

Q: What does success look like for ZF in 2025, and what specific milestones or targets are you prioritizing? 

A: In 2025, we will focus on adapting to changing market conditions and the evolving industrial landscape. The transition to fully EVs is taking longer than we initially expected, and regulations have relaxed somewhat as a result. Our strategy now focuses on developing a broad range of products that fit this slower transition, allowing us to remain flexible and competitive. Instead of pushing a rapid EV adoption, we are adapting to the new reality, innovating within that space, and continuing to deliver value as the industry changes. Staying agile and aligned with market demands is how we will secure success in the coming years.