ZF Business Automobile Options raised its U.S. gross sales outlook for subsequent yr by about $50 million, an government stated at a media briefing forward of IAA Transportation in Hanover, Germany. The German provider additionally paused a U.S. hybridization undertaking with a lead buyer and is concentrating its new TraXon Hybrid transmission on Europe and Japan.
Fabian Schlegel, world head of gross sales and head of the EMEA area at ZF CVS, stated he and Dirk Wohltmann, head of ZF CVS in North America, made the choice in a gathering with government administration in Switzerland the week earlier than the briefing.
“What provides me confidence: vans and trailers aged brutally during the last years as a result of everybody was cautious on substitute,” Schlegel stated. “Mileage is there; vans should not standing nonetheless. You come into the necessity to exchange. Not a bonanza, however a pleasant improve.”
ZF had deliberate for a flat U.S. market this yr. Demand has climbed sharply for the reason that second quarter, Schlegel stated, and ZF vegetation pulled in as much as two months of manufacturing forward of schedule to maintain clients provided.
U.S. demand runs forward of plan
ZF’s North American enterprise grew 23.7% final yr to $1.32 billion in income, stated Wohltmann, who is predicated in Auburn Hills, Mich., and in addition leads R&D for the Americas.
“Good pattern upward,” he stated of the U.S. market. “Freight is demanding. Fleets beginning to replace tools. Uncertainty is the phrase of the yr. Not an incredible exploding market — a wholesome, forward-looking one.”
Requested about tariffs and diesel costs, Wohltmann stated, “Difficult, however the market held for some time and now it’s on the level of make investments. Excessive diesel even fuels the drive for environment friendly options.”
Wohltmann pointed to ZF’s PowerLine eight-speed automated, constructed at its plant in Grey Court docket, S.C., which is on the market with Paccar and coming quickly to Daimler Truck North America. The corporate can be pitching an electrical trailer constructed round its AxTrax pushed axle, which makes use of regenerative braking to cost batteries, run a reefer unit, and assist push the mixture. Gas financial savings depend upon the use case, he stated, and go “method above 10%,” with the very best case getting shut to twenty%.
New enterprise and money stream
ZF CVS has booked greater than €5 billion ($5.7 billion) in lifetime enterprise thus far in 2026, in keeping with ZF’s Sept. 15 IAA press launch. Schlegel put the division’s win charge in buyer acquisitions at greater than 90% and described the technique as profitability over scale.
“We don’t take enterprise at a nasty margin,” he stated.
Throughout the group, adjusted free money stream greater than doubled to €989 million ($1.13 billion) within the first half, from €465 million ($530 million) a yr earlier, in keeping with ZF’s July 30 half-year outcomes. Schlegel stated stronger money technology let ZF pay again a primary tranche of debt within the first half, forward of its second-half plan.
Hybrid focus shifts to Europe and Japan
TraXon Hybrid was ZF’s lead pitch at IAA. It’s constructed on the TraXon 2 automated guide transmission and reuses components from ZF’s electrified drivetrain platform. ZF has offered greater than 1.5 million TraXon transmissions, all within the heavy class, Schlegel stated.
“Leaving politics apart: we had a lead buyer within the U.S. very ,” Schlegel stated. “Given the present body, the U.S. hybridization undertaking is for the second paused.”
Europe and Japan are the present focus, he stated, and ZF is “on the best way to signal first buyer contracts” for the hybrid. 5 days after the briefing, TraXon Hybrid received the Truck Innovation Award 2027 from the Worldwide Truck of the Yr jury at IAA Transportation, Automotive World reported.
For the U.S., Wohltmann stated an electrical trailer pulled by a diesel tractor “is already an entry to a hybrid setup.”
“If we are able to present TCO enchancment and ROI round yr two, it can get curiosity within the U.S.,” he stated.
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