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ZF sells plant shares

Supplier quits Ford, ArvinMeritor transmissions joint ventures

Friedrichshafen, German. ZF Friedrichshafen AG will sell its share of two U.S. transmission plants.

Ford will buy ZF's 51 percent share in the companies' 4-year-old joint-venture transmission plant in Batavia, Ohio. The deal will be retroactive to January 1.

ZF says it is selling because the engineering phase for the continuously variable transmission the two companies have been working on is finished. Ford will handle production of the transmission.

The plant, which has 1,400 employees, had sales of approximately 400 million euros last year.

ZF says the sell-off won't impact the ZF Transmission Technologies joint venture with Ford, which is responsible for marketing and further development of CVTs.

Meanwhile, U.S. supplier ArvinMeritor will buy ZF's 50 percent share in their joint-venture transmission plant in Laurinburg, North Carolina.

ZF says it does not need capacity at another plant to produce its Astronic/FreedomLine manual transmissions, which will be built instead at ZF's plant in Friedrichshafen, Germany.

ZF says ArvinMeritor will remain its sales partner for the commercial vehicle transmissions.

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