German auto parts supplier ZF expects the global auto industry to remain volatile in the second half of 2020, but the company said Asian countries, especially China, are offering some reassurance.

ZF CEO Wolf-Henning Scheider said: “China and (other parts of) Asia are currently the most promising markets. Business in this region is coming back very strongly and is helping us to increase our sales again.”

Scheider made the remarks when ZF released its first-half financial statement on Friday. Due to the global economic situation and the coronavirus pandemic, the company’s sales in the first six months totaled 13.5 billion euros ($15.91 billion), down 27 percent from the same period in 2019.

He expects markets in other parts of the world to remain tense. “Although Europe is showing signs of recovery at the moment, it will likely be the most critical region in the next few years due to declining vehicle exports and stricter emissions regulations,” said Scheider.

Development in the Americas is also uncertain due to the high number of COVID-19 infections. Overall, ZF does not expect the global market to recover to 2019 levels in the next three years.

In view of the slow recovery, ZF is taking action to adapt to the new circumstances and achieve a sustained improvement in earnings.

Scheider said: “This is crucial to continue investing in future technologies such as e-mobility and autonomous driving, to win business and to further strengthen our financial independence for the future.”

The company has announced that it will not invest in transmissions exclusively designed for internal combustion engine vehicles. Instead, it will focus its development work on flexible platform technologies for long-range plug-in hybrids and pure electric vehicles.

ZF is merging its powertrain and e-mobility divisions to better offer electrified solutions. The new division will be established on Jan 1, 2021.

Scheider said: “The corona pandemic is noticeably accelerating the transformation of the automotive industry. We expect electrification to come even faster now.”

“The newly formed division will be able to leverage the system advantages of both divisions and offer vehicle manufacturers a comprehensive electrified portfolio as well as worldwide development and production capacities under one roof,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

SoftBank sheds $15 billion on U.S. tech stock rout

TOKYO (Reuters) – SoftBank Group Corp (9984.T) shares were down 5% in afternoon trade on Wednesday, extending this week’s slump that has wiped $15 billion from its market capitalisation, as investors worried about the conglomerate’s exposure to sliding U.S. tech…

Citigroup’s Jane Fraser to become first woman to head a Wall St. bank

(Reuters) – Citigroup Inc (C.N) on Thursday named consumer banking head Jane Fraser to succeed Michael Corbat next year as the bank’s chief executive officer, making her the first woman to lead a major Wall Street bank. Fraser, 53, has…

Verizon falls as Disney+ subscriber boost comes at a cost

New York (CNN Business)Good news for Verizon. A lot of people took advantage of the company’s offer of free Disney+ for a year so they could get their Baby Yoda fix. Verizon reported fourth quarter revenue Thursday that topped analysts’…

Asian stocks rise, boosted by ‘re-opening optimism’

Hong Kong (CNN Business)Asian stocks rose on Tuesday, as a growing number of cities and countries around the world take steps toward re-opening. Hong Kong’s Hang Seng Index (HSI) was up nearly 1.6%, adding to Monday’s gains. China’s Shanghai Composite…