R & D investment increased to 2.7 billion euros in 2019

For the 2020 performance trend, ZF said it was unknown.

ZF announces 2019 results. ZF sales in 2019 were 36.5 billion euros, a decrease of 1.1% year-on-year. Adjusted EBIT was 1.5 billion euros, a 28.6% year-on-year decrease. The EBIT Margin was 4.1%, a year-on-year decrease of 1.5%.


ZF is one of the world's three largest gearbox manufacturers with a 105-year history. Headquartered in Germany, ZF's main products are gearboxes and drivetrains. Over 120 production bases and 6 R & D centers have been established worldwide. In 2019, it ranked 266th in the world's top 500.

Since ZF officially entered China in 1981, it has accumulated a number of high-quality customers, including Shanghai Volkswagen, Shanghai GM, FAW Group, etc., and has set up R & D centers in Shanghai.

Regarding the decline in revenue in 2019, ZF's chief executive officer Wolff Schneider said that it was caused by the economic downturn and challenges faced by ZF's own industry transformation.

Sales in Europe and Asia Pacific fell by 4% and 2.5%, respectively. Among them, affected by the "cold winter" of the Chinese automotive market, ZF's sales in China in 2019 also fell from 6.2 billion euros last year to 5.8 billion euros, a decline of about 6.5%. ZF's sales in North and South America have increased by about 100 million euros compared with last year.

At the same time, the target of planning to have more than 150,000 employees in 2019 has not been reached due to economic impact. The number of employees has shown a downward trend for the first time in the past four years, which has reduced more than 1,000 employees compared with the previous year.

In recent years, ZF has accelerated its strategic focus in the areas of "new energy" and "autonomous driving."

In August 2019, Shi Aide stated that the company will increase its business in the four major sections of electric mobility, integrated safety, vehicle motion control and autonomous driving in the next phase. Today ZF also said at the press conference that R & D investment in 2019 increased from 2.5 billion euros last year to 2.7 billion euros.

In addition to relying on ZF's own R & D team, integrating other resources in the industry is also a great way for ZF to achieve its strategic goals. This is reflected in Zeev's recent acquisition of 2getthere, a veteran supplier of self-driving electric passenger transportation systems, and its cooperation with Microsoft on software.

ZF's development strategy in the field of autonomous driving consists of the three keywords " See-Think-Act " (observation, thinking, and action), which correspond to the three core levels of autonomous driving. "Observation" is detection technology, "action" is the braking system and steering system of the car, and "thinking" is data processing.

ZF's recent strategic cooperation and acquisitions also focus on this theme. In addition to the 2getthere company and Microsoft mentioned above, ZF acquired WABCO, the world's leading brake system supplier, for $ 7 billion earlier this year. The "action" level carried out a deeper landing operation.

At the end of the press conference, ZF put forward ten specific measures in response to the current epidemic, including reducing indirect costs, reducing investment, strengthening the supply chain, and strengthening employee health protection. It can be seen that in the future, ZF will slow down its expansion and focus on existing businesses.

In addition, ZF said that due to the uncertainty of the impact of the epidemic, the company could not make an effective forecast for 2020 performance.