ZF sells driver assistance division to Samsung subsidiary Harman - ZF sells driver assistance division to Samsung subsidiary Harman
ZF Friedrichshafen has agreed to sell its advanced driver assistance systems (ADAS) division to Harman, a subsidiary of Samsung. The deal, valued at €1.5 billion in enterprise terms, will see around 3,750 employees move to the new owner. Company leaders have described the transaction as a key step in reshaping their business strategies.
ZF has struggled financially in recent years, facing losses from past acquisitions and the slow shift to electric vehicles. The company’s debt exceeded €10.6 billion by late September, prompting a major restructuring plan. This includes cutting up to 14,000 jobs in Germany by 2028.
The sale of its ADAS unit allows ZF to focus on areas where it remains a global leader. These include electronics for chassis technology, passive safety systems, and autonomous driving solutions for commercial vehicles. CEO Mathias Miedreich stated that the move would help the company concentrate on its core strengths. Harman’s CEO for automotive, Christian Sobottka, called the acquisition a strategic push toward more connected and safer vehicles. Chairman Young Sohn also highlighted its importance in expanding Harman’s automotive technology portfolio. The proceeds from the deal will be used by ZF to significantly reduce its debt burden.
The transaction marks a major shift for both companies. ZF will streamline its operations, while Harman gains a larger role in automotive safety and connectivity. The final purchase price, however, has not been publicly disclosed.
