ZF CEO Calls China the ‘Center of Gravity’ for Electric Trucks

ZF Friedrichshafen AG CEO Mathias Miedreich has stated that China has become the ‘center of gravity’ for electric-truck technology, with electric trucks already accounting for about 30% of the Chinese market. This is in stark contrast to Europe, where the adoption rate is in the low single digits. ZF plans to pursue China’s electric-truck growth while supporting hybrid technology in Europe, as the company navigates a slower transition to zero-emission vehicles. Chinese manufacturers, such as BYD Co. and Geely’s truck divisions, as well as startups like Windrose Technology, are key competitors in the electric truck market. ZF expects most trucks sold in China to ultimately use electric drives from domestic suppliers, but sees an opportunity to work with Chinese manufacturers as they expand overseas. This would lower costs for components produced in Germany and generate cash for European operations. The company is calling for more support for hybrid drive technology after incurring heavy losses on an earlier bet on electric passenger-car drives. ZF is undergoing a restructuring that is expected to eliminate thousands of jobs, and is aiming to hedge against the uncertainty about the speed of a transition to zero-emission vehicles by participating in China’s electric truck boom while keeping hybrid technology for a European transition it expects to take considerably longer.