ZF considers IPO
ZF Friedrichshafen is currently satisfied with the setup in the commercial vehicle sector, but keeps all possibilities open for its future. A stock exchange listing for the commercial vehicle division is also an option, according to CEO Holger Klein.
The automotive supplier ZF Friedrichshafen is considering a stock exchange listing for its commercial vehicle division, according to CEO Holger Klein. "Such stock exchange listings would be in close coordination with our shareholders," Klein told "Manager Magazin" in an interview. Anyone who wants to play at the forefront of the automotive industry must sometimes seek partners or other investment structures on the capital market. "We are examining all options, but we are very satisfied with our position in the commercial vehicle sector."
ZF's business with drives and parts for trucks achieved the strongest sales growth of all divisions last year: 15.5 percent to approximately 8.7 billion euros. However, the economic downturn affecting truck manufacturers is also being felt by the supplier, Klein said.
At the same time, automakers are under immense pressure due to price wars that began in China and have since spread. The weak demand for electric cars is also a burden. "Our business has become even tougher in the past few months," Klein said. After years of record earnings for automakers, the tables have turned, and they are now passing the pressure on to suppliers. "The cost pressure on us is increasing."
ZF is grappling with high levels of debt due to large acquisitions and could therefore use earnings from sales or stock exchange listings. The preparation for the sale of the airbag division ZF Lifetec has been ongoing for a long time. Klein confirmed that there are interested buyers. ZF is waiting for the right moment, as the capital market environment improves. "We are convinced that ZF Lifetec would have a higher value as an independent entity." The Friedrichshafen concern could also continue to operate the business itself. "We have no rush and are waiting for the right moment."
ZF Friedrichshafen's CEO, Holger Klein, mentioned that a stock exchange listing for the commercial vehicle division is an option, suggesting a potential Initial Public Offering (IPO). Given the current economic challenges in the car industry, especially in the commercial vehicle sector, ZF may find partnering or seeking investment structures on the capital market beneficial to maintain its competitive edge.
