ZF Friedrichshafen takes heavy charge to exit electric vehicle projects amid slow market adoption
German supplier ZF Friedrichshafen will record a major charge to end unprofitable EV projects. This move follows slower adoption across the global industry.
Insights:
German automotive supplier ZF Friedrichshafen announced on Friday, January 23, 2026, that it will take a one-off charge of between 1.5 billion and 1.7 billion euros to exit several electric-mobility projects. The company stated that these projects, which were mutually agreed with customers for termination, were unlikely to meet profitability targets due to slower-than-expected electric vehicle adoption. This decision comes despite the company reporting a full-year adjusted EBIT margin significantly above 4 percent, which beat its previous guidance of 3 to 4 percent.
