FRIEDRICHSHAFEN – ZF Fried-richshafen will pass on steel price rises to its customers.
But CEO Siegfried Goll said ZF would be “more generous” with its own suppliers “than car manufacturers are with us.”
Otherwise, he said, hard-pressed small and medium suppliers could go out of business.
Because of the soaring price of steel, ZF expects its costs to increase by between E150 million and E200 million this year unless its customers pay more.
Steel represents 50 percent of the company’s purchasing volume.
ZF, a chassis and driveline technology specialist, plans to pass on two-thirds of its additional costs to suppliers.