German Auto Supplier Sees Debt Relief From Slower EV Transition

ZF Friedrichshafen AG is getting some reprieve from its debt burden with the slower shift to electric cars boosting demand for key components such as gearboxes.

Changing course from an EV-first approach to selling parts for EVs, hybrids and fuel-burning cars will help bolster the company’s balance sheet, Chief Financial Officer Michael Frick said in an interview. The German supplier to Ford Motor Co., Volkswagen AG and BMW AG is already benefiting from more favorable refinancing costs, he said.