Visit to ZF CEO Hans-Georg Haerter Core tips: Hans-Georg Haerter (Hans-Georg Haeder), CEO of the powertrain and chassis manufacturer ZF (ZF), is deeply concerned about the financial troubles of its multiple suppliers that have emerged recently. ZF has provided short-term loans to those suppliers that have been trapped by the credit crunch, or it has provided relief in the form of increasing its supply price. Mr. Haerter expects that the economic situation will deteriorate in the first quarter of 2009, and he expressed relevant opinions on topics related to the auto parts industry. Streamlining U.S. business market position will be strengthened Reporter: What about ZF’s U.S. business? Haeder: The US market is a “problem†zone in ZF. About 8% of our total sales revenue comes from here, so this also means that the US market is no longer a crucial factor for the operation of our company. For the U.S. market, my concept is: We must cut down diseased trees and cultivate seedlings. Reporter: What is the "sick tree" and what are the "seedlings" that you want to cultivate? Haeder: The diseased trees are those factories that have been shut down. The shock absorber factory in Florence, Kentucky, USA was closed at the end of December 2008. (Note, ZF moved the shock absorber plant to Mexico and will Hebron's steering system parts factory moved to Florence. We have too many production sites in the United States. By integrating these production base points, we will get more synergies. The first thing to do is service sharing; we will not set up a full-service organization anymore, but we will have a suitable production base. Reporter: How will the U.S. government rescue the three major automakers in Detroit affect ZF's business? Haeder: I expect this will instead promote ZF’s position in the US market. I estimate that the "big three" will survive because it would be unthinkable if one cannot survive. But they are eager to need more fuel-efficient cars. This means that the drive system is more efficient and the engine and transmission are more optimized. All of ZF is well prepared. I do not believe that these vehicle manufacturers who continue to survive can rely on their own financial resources to operate smoothly. This will mean that there are many good opportunities for healthy suppliers. When it comes to healthy suppliers, I predict that they will have more opportunities because of the decline in the credit capacity of U.S. component suppliers. Better credit capabilities are playing a more important role in contract awards. We plan to integrate two or three factories in the United States. However, based on the consideration of diseased trees and seedlings, we will also establish a new automatic transmission plant for light commercial vehicles (LCV). This will be a new investment. In addition, you should also know that we and Chrysler's joint venture plan (Note, ZF and Chrysler have a joint venture plant near Detroit, since 2010, Chrysler and other potential customers to supply axles, the plant is owned by Chrysler, but Zaire Fufu is responsible for day-to-day operations and purchases all production facilities to relieve Chrysler's burden of funding shortages.) For ZF, the US market is still an attractive market with huge capacity. We are expanding our customer base in the United States. In the U.S. market, we are supplying Honda, Nissan and Hyundai - this is our business goal in 2008. Based on sales generated by new customers, I believe we will return to a favorable position in the US market. Some suppliers of salvage suppliers were postponed Reporter: What measures does ZF currently take to support its suppliers? Haeder: We are taking a series of temporary measures to rescue our strategic suppliers, such as providing short-term loans, or paying higher than ever before. Reporter: Can you predict the market conditions in 2009? Haeder: We are dealing with many different situations. We don't have reliable data from our customers yet, so it's hard for us to plan now. However, I estimate that sales will decline, and this will in turn cause employee problems (retirements). Reporter: Will it reduce the reliance on the auto industry, as the German Robert Bosch Group, the world's largest auto parts supplier, is doing as it is? Haeder: The automotive business accounted for approximately 81% of our turnover and will continue to be our key business operation. However, we also want to expand business outside the automotive sector. Reporter: Are you planning to invest continuously in new automotive technologies, such as hybrid and electric vehicle drivetrains? Haeder: We set up a phased production base for hybrid technology in May 2008 in Schweinfurt, Germany. We expect that the OEMs we supply will have the first batch of cars this year. (Editor's note: ZF's Sachs Department The German Schweinfurt plant is building a new motor that will be used in the Mercedes-Benz new mild hybrid driveline. It is reported that the first model to be marketed is expected to be the S400 hybrid. The car will use a combination of a 3.5 LV6 petrol engine with a 15kW motor/generator and a lithium-ion battery to obtain braking energy regeneration. We are also working on the development of drive systems for alternative energy vehicles, including electric vehicles. Reporter: Did ZF's customers cancel or postpone their cooperation projects with you? Haeder: There are some projects that have been delayed for 2 to 3 months. Some were delayed for 2 to 3 years. In the current financial situation, some of our client's projects are prioritized and some have been rescheduled. The situation is not the same. However, those projects of energy conservation and emission reduction are not affected by the current economic crisis. Reporter: What happened to ZF's plan to join hands with AvtoVaz, the largest automaker in Russia, to set up an axle and chassis factory? Haede: The project was pending but it has now been reborn. Volga Motors has chosen Renault as the investor and both parties have re-examined their strategic partnership. Although we have not yet signed a substantive contract, we still have full confidence in this. I think there will be results in the first half of 2009. This will mean setting up a production base in Togliatti, Russia, with an investment of tens of millions. New products are smaller, lighter and more efficient Reporter: ZF's 8-speed dual clutch transmission is about to be released. Are you developing a 9-speed system? Haeder: We are working on several options for the next generation of products. This does not mean that the next generation of products will certainly be 9-speed, but I cannot rule out this possibility here either. Reporter: Is ZF trying to achieve a more compact and lightweight transmission module? Haeder: We are working to optimize the weight of the transmission, increase transmission efficiency, and optimize the installation space. Reinforcing mesh is also called welded steel mesh, steel welded mesh, steel mesh, and so on. Reinforcing Mesh,Reinforcing Mesh For Construction Site,Galvanized Reinforcing Mesh For Construction,Welded Mesh Reinforcing Mesh Anping County Dongjie Wiremesh Products Co., Ltd. , https://www.dongjiewire.com
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