- German automotive supplier gets €425 million EIB loan to develop technologies for advanced braking and steering systems.
- Innovation helps ZF navigate switch to automated driving and stay competitive.
The European Investment Bank (EIB) is providing a promotional loan of €425 million to German automotive supplier ZF Friedrichshafen AG. The funds will enable ZF to invest a total of €1.3 billion in research and development of innovative technologies for braking and steering systems, actively shaping the switch to software-defined vehicles.
With such new technologies, ZF will be able to remain competitive as the mobility sector moves towards highly automated driving. The company is already pioneering the development and industrialisation of modern chassis systems.
The loan will help to finance the development of x-by-wire technology, including the steer-by-wire system, which does away with the mechanical connection between the steering wheel and steering system. These technologies are fundamental for higher levels of vehicle automation. They lead to better vehicle control, more steering flexibility, greater driving stability at high speeds and, by extension, an overall increase in safety and comfort.
Alongside hardware components, software also plays a central role in this innovation project. The initiative follows a clear trend in the automotive industry away from the many individual controls of hardware components and towards overarching domain and zone architectures. New electric and electronic vehicle architectures bundle all the software for a specific functional area of a car in a central control unit. This is an important step on the road to autonomous driving.
As a result, the project will contribute to more efficient and sustainable mobility in Europe. About 30% of the planned investments will be made in EU cohesion regions such as Poland, Romania and the Czech Republic.
The investment will safeguard and create jobs as well as train people in new skills, especially software.
The transaction marks the third project between the EIB and ZF. They joined forces in 2016 to increase the efficiency of combustion engines and in 2021 to accelerate innovation in the field of autonomous driving.
"This project is an excellent example of how the EIB supports the innovation capacity of the European transport and automotive industry," says EIB Vice-President Nicola Beer. "Technological leadership in the field of highly innovative braking and steering systems is of great importance to strengthen the competitiveness of the European industry and to secure jobs along the entire value chain. This transaction underlines the successful strategic cooperation with ZF, a supplier with high innovative strength in this future area."
"We are pleased to continue our longstanding partnership with the EIB," said ZF Management Board member Michael Frick, who is responsible for IT, equity investments and passive safety technology as well as finance in the ZF Group. "The EIB stands for long-term financing and is recognised as a sustainable investor. That suits us well as a company with two foundations as shareholders."
Background information
EIB Group
The EIB Group is the long-term lending institution of the European Union. It finances sound investments that contribute to EU policy objectives and works closely with other EU institutions and bodies to advance shared priorities such as equitable growth and a just transition towards climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing in 2023, of which €8.6 billion in Germany.
All new projects financed by the EIB Group are in line with the Paris Agreement. Investments in fossil fuels that do not reduce CO2 emissions are not eligible for financial support. The EIB Group is on track to deliver on its commitment to support €1 trillion in climate action and environmental sustainability investment in the decade to 2030, as pledged in its Climate Bank Roadmap. Over half of the EIB Group’s annual financing signed supports projects that directly contribute to climate change mitigation and adaptation, and to a healthier environment. Approximately half of the EIB’s financing within the European Union goes to cohesion regions, where per capita income is lower, promoting inclusive growth and the convergence of living standards.
About ZF
ZF is a global technology group that supplies advanced mobility products and systems for passenger cars, commercial vehicles and industrial technology. Its comprehensive product range is primarily aimed at vehicle manufacturers, mobility providers and startup companies in the areas of transport and mobility. ZF electrifies a wide range of vehicle types. With its products, the company helps to reduce emissions, protect the climate and enhance safe mobility. Alongside the automotive sector of passenger cars and commercial vehicles, ZF also serves market segments such as construction and agricultural machinery, wind power, marine propulsion, rail drives and test systems.
With some 168 700 employees worldwide, ZF reported sales of €46.6 billion in 2023. The company operates 162 production sites in 31 countries.