Sawt Falasteen - German auto supplier ZF axes electric projects as demand stalls

ZF had agreed with customers to "end earlier than planned several projects that were not proving as profitable as expected due to the slow ramp-up in e-mobility", it said in a statement.

Ending the projects early would likely tip ZF into the red for the year, finance boss Michael Frick said, adding that he nevertheless thought the hit would be worth it in the long run.

"The special charge in the e-mobility sector will result in an accounting loss for 2025, but it frees us from legacy burdens and lays the foundation for new opportunities," he said.

The move makes ZF Friedrichshafen the latest German company to report bumps in the road when it comes to the electric vehicle ramp-up.

Europe's largest carmaker Volkswagen in October reported its first quarterly loss since the Covid pandemic after its luxury brand Porsche pushed back electric car launches citing weak demand.

Battery electric vehicles made up just 16.4 percent of new car sales in Europe in the first ten months of 2025, according to industry figures, far behind the more optimistic expectations of earlier years and off-target to meet strict European Union environmental rules.

In 2024, the most recent full year available, ZF posted sales of 41.4 billion euros ($48.6 billion).

The firm reports full results for 2025 and its outlook for 2026 on 19 March.

Z.Ramadan--SF-PST