ZF "Accelerate shifting" in China

ZF, a globally renowned German transmission manufacturer, is well-known to Chinese car consumers but less familiar to truck users in China. Recognizing the vast potential of the underdeveloped Chinese truck market, ZF has established 18 factories in China since 2006, including ZF Transmission Technology (Hangzhou) Co., Ltd., which specializes in the development, production, and sales of commercial vehicle gearboxes. At the time of the company’s establishment, Wolfgang Vogel, executive director of ZF Group’s commercial vehicle and special drive systems, stated: “It is the right time for ZF’s truck transmission project to enter China. The Chinese commercial vehicle market will continue to grow, and 16-speed synchronized gearboxes are becoming increasingly essential for automakers.” In 2007, ZF made a solid step forward in the Chinese market, driven by the booming truck industry. Mr. Holzner, General Manager of ZF Drive Technologies (Hangzhou) Co., Ltd., recalled: “The implementation of weight-based toll collection, rising fuel prices, and the expansion of China’s expressway network led to a reshuffling in the transportation sector. Point-to-point long-haul transport and city-centric logistics became dominant, creating a huge demand for high-powered, large-displacement trucks. ZF recognized this opportunity and was proven right.” Looking ahead, ZF remains committed to building a sense of responsibility in the Chinese market. Although its sales in Hangzhou haven’t fully met expectations, ZF views its investments as long-term strategies. Director Wei Guoqing from ZF Transmission Technology emphasized that ZF’s global success confirms their choice. He noted that China’s road conditions are similar to Europe, making ZF’s transmissions ideal for the local market. With features like multiple gears, strong hill-climbing ability, and smooth shifting, ZF’s products align with the evolving needs of China’s truck industry. As the National III emissions standard was fully implemented in 2008, ZF anticipated increased competition but believed it would strengthen their market position. The 16-speed transmission, with its higher speed ratio, suited China’s three-engine models, enhancing both climbing power and economic efficiency. Mr. Holzner added that while overall truck sales might decline, ZF’s market share would grow due to its focus on the high-end segment. As an independent foreign investor, ZF takes its role seriously. It brings advanced technology to China, ensuring its products meet local needs. The Ecosplit gearbox, produced at the Hangzhou plant, is one of ZF’s top-tier manual transmissions. Mr. Holzner emphasized that ZF does not bring outdated technology to China. Instead, it aims to lead the market toward higher standards. In 2008, ZF planned to introduce its leading AMT technology to improve driver working conditions and support China’s goal of building a harmonious society. When asked about localization and cost reduction, Mr. Holzner assured that ZF would not compromise quality. Director Wei joked that developing new products was more effective than lowering quality. ZF’s commitment to quality is evident in its rigorous supplier selection process, where parts were tested for months to meet German certification standards. The Hangzhou production line follows international standards, reinforcing ZF’s belief that high-quality products are essential in China’s truck market. Zhejiang Fuhua Group’s Fu is one of ZF’s biggest beneficiaries. After purchasing a Dongfeng Tianlong equipped with ZF transmission, he found it met all customer requirements, with high speed, reliability, and low maintenance costs. Fu praised the ZF transmission for its durability and performance, noting that the clutch lasted over 1.1 million kilometers. This experience made Fu a strong advocate for ZF. Dongfeng Commercial Vehicle Co., a key partner, held a special promotion event for the Tianlong model equipped with ZF transmissions. Both companies expressed confidence in their collaboration. Dongfeng Tianlong, a top-tier heavy truck, sold over 20,000 units in two years, with ZF providing 100% of its gearboxes. While ZF works behind the scenes, its goal is to reach 10% of the Chinese market by 2008, adapting to the dynamic market and high-priced consumer preferences. Facing fierce competition, ZF focuses on mid- and high-end markets, believing that proactive strategies are the best defense. Mr. Holzner stressed that ZF’s clear vision and targeted approach have positioned it to succeed in the Chinese truck market, proving that “German speed” can adapt to “Chinese speed.”

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