In a bid to create a global supply chain, and acquire technology for self-drive cars, the German firm completed the deal in September 2014 at a price of $105.60 per TRW share.
“The deal will more than double ZF’s sales in China and the US, complementing its already large presence in Europe”
TRW are a major American global supplier of automotive systems and components to automotive original equipment manufacturers and aftermarkets. ZRFs purchase of the American firm will not only increase their revenue to $30 billion and expand their workforce to 138,000 employees, but it will greatly expand their portfolio of services that they can provide.
ZFs Chief Executive Stefan Sommer explained that a major driver in the deal was a commitment to the development of driver-assistance systems and autonomous driving, which he has identified as an area of significant future growth. TRW’s portfolio is able to supply the radar systems and cameras vital to self-drive car construction. He also argued that the deal was part of an effort to create a global parts-sharing platform:
“we need powerful tier-one suppliers who are big enough to fulfil these requirements. From our point of view we need to be big and powerful to serve those needs.”
Car parts manufacturers can’t afford to fall behind in the global drive towards new self-driving and autonomous vehicle technologies. We are in the midst of a paradigm shift in the traditional way of making cars, and ZFs recognized that to survive it, they had to take steps to expand their capabilities and portfolio.
Competing with some of the world’s largest manufacturers, and with companies like Google breathing down their necks, the pressure to stay current and lead the drive is greater than ever.
Our car parts supply service couldn’t hope to compete with the likes of ZFs, but we are committed to supplying the latest technologies and original manufacturer parts of the highest quality possible to vehicle fleets and various aftermarkets.
If you would are looking for a reliable car parts supplier in Gloucestershire or nationwide, talk to us about what we can offer.