ZF and Wolong Electric sign off on their joint venture

2 MinutesBy NZ Trucking magazineMarch 11, 2020

ZF Friedrichshafen AG and the Wolong Electric Group Co., Ltd. have officially signed off on their joint venture. The partners will develop and produce electric motors and electric components for various vehicle applications at the Chinese Shenyang location, among others, working under the name Wolong ZF Automotive E-Motors Co. Ltd. Volume production is slated to start next year. The new joint venture will also supply components for the new ZF hybrid transmission.

“The joint venture with Wolong reinforces our market position and our competitive edge in China as well, which continues to be the biggest market for electromobility in the world,” says Jörg Grotendorst, head of the ZF E-Mobility Division. “As we’re already using the available capacities for production and development onsite, we can start operations immediately.”

ZF holds a 26% share in the joint venture. Wolong has been a supplier for the ZF E-Mobility Division in China since 2018. In November 2019, the partners agreed to start a joint venture.

“Founding Wolong ZF Automotive E-Motors Co Ltd. also opens up a global perspective for us,” says Jiancheng Chen, chairman of Wolong Electric. “We want to make this joint venture a global market leader for vehicle motors that use sustainable sources of energy.”

To back this ambition, plans have been made to open other locations in the EU and North America. By 2025, about 2000 employees are expected to work in production and development for Wolong ZF Automotive E Motors Co Ltd.