ZF scraps EV projects, expects 2025 loss as demand slows
German auto giant ZF is pulling the plug on several electric vehicle projects after realizing the EV market isn't growing as fast as hoped.
The company now expects to post a loss in 2025 and is rolling out a big cost-cutting plan—think shorter work hours and delayed pay hikes—to save over €500 million (no target year specified in source).
What's changing at ZF?
ZF struck a deal with employees to keep its main EV division in-house but will discontinue development activities in product groups including on-board chargers and DC converters.
Instead, they're betting on tech like thermal management systems and hybrid transmissions.
Around 7,600 jobs will be cut (no target year specified in source), though ZF says there won't be forced layoffs.
Why does this matter?
Even with €41.4 billion in sales in 2024, ZF is feeling the pinch from slow EV adoption—only about 16% of new cars sold in Europe in the first 10 months of 2025 were fully electric.
It's a reality check for anyone watching the future of green tech and jobs in the auto industry.