Core Viewpoint - ZF Friedrichshafen AG (采埃孚) is evaluating the feasibility of independently splitting its electric drive technology division to enhance competitiveness and seek synergies with partners, while shifting its business focus towards the Chinese market [1][3][4]. Business Strategy - The company aims to rank among the top three in its operational fields, having achieved leading positions in chassis and commercial vehicle sectors, and second in aftermarket services [1][3]. - Previous restructuring efforts have yielded positive results, such as the collaboration with Foxconn, which has expanded ZF's axle assembly business [3][6]. - The decision to split the electric drive division is not a simple sale but a strategy to collaborate with partners for greater flexibility and investment opportunities [3][6]. Financial Performance - ZF's 2024 fiscal year report indicates total sales of €41.4 billion, with a nominal sales decline of approximately 11% due to the split of the axle assembly product line, which accounted for €2.6 billion [3][5]. - The organic sales decline was about 3%, with an adjusted EBIT margin of 3.6% [3]. Market Focus - Despite challenges in the European market, ZF's business in China continues to grow, prompting a shift in focus towards the Chinese market [4][10]. - The company has launched several new technologies and products in China, with plans for further localization and development [10][13]. Collaboration and Resource Integration - ZF is seeking strong external partners while also integrating internal resources to enhance its electric drive division's competitiveness [7][9]. - The establishment of a new chassis solutions division in January 2024 consolidates various product offerings, making ZF the largest automotive parts supplier in the chassis sector [9]. Localization Strategy - ZF is prioritizing localization in China, leveraging the country's complete supply chain and industrial system to enhance global operations [14]. - The company plans to expand its factories in China to support local R&D and production of advanced technologies [13][14].