BERLIN (Reuters) – German automotive supplier ZDF is considering a spin-of of its electric drive train division, the Handelsblatt business news outlet reported on Tuesday, citing company sources.
ZF said it was “examining strategic collaborations and partnerships” for either the entire unit or parts of it.
The considerations were an effort to make the unit profitable again with the necessary investments against the backdrop of “the delayed ramp-up of e-mobility, the high costs and the resulting low margins in the traditional transmission business”, a company spokesperson said in an emailed statement to Reuters.
The company said it was in dialogue with employee representatives about the status of the considerations and declined to comment further.
(Reporting by Ilona Wissenbach, Writing by Friederike Heine, Editing by Rachel More)
