/> “We’ve managed to find our way back to success faster than expected and have even achieved total sales revenues that exceed the record high set in 2007,” says ZF CEO Hans-Georg Härter, summing up the current year’s performance. Sales in 2007 reached 12.6 billion euros, followed by 12.5 billion euros in 2008. Last year, however, the company saw sales decline to 9.4 billion euros. “As the year began, we definitely ruled out the possibility of such tremendous growth and such a complete recovery,” added Härter.

In 2010, ZF achieved strong revenue growth over the previous year in all regions. Particularly strong growth occurred in the BRIC countries (Brazil, Russia, India and China). Production increases in the European car segment were primarily export-driven, while the commercial vehicle segment experienced significant upward movement through the year, and will continue to be buoyed by stable orders. In Russia, joint venture ZF Kama, which manufactures truck transmissions, has reported a substantial sales increase. In China, market growth in the premium car segment has led among other things to a rising demand for automatic transmissions and power steering systems. In this market, ZF also managed to gain new customers, among them those in the construction machinery segment.

Meanwhile in India, the joint enterprise between ZF and Hero Motors to manufacture chassis technology is well underway. In 2010, ZF also opened plants in India for the production of transmissions and axles for construction machinery, as well as truck transmissions. In Brazil, ZF achieved high growth rates, particularly in the farm equipment and truck segments. In addition, a ZF production plant for axles and axle transmission was opened in the United States in late 2009. Here, it also managed to finalize a major supply and licensing contract for 8-speed automatic transmissions, which will allow sales in North America to continue to grow in the coming years.

“This rapid switch from crisis to robust growth was only possible because we were able to keep a sufficiently large portion of our core workforce on board, who were in turn highly motivated to take on the new challenges,” explains Härter. “In this respect, government policy makers deserve a great deal of credit. By making changes to Germany’s short-time work regulations, they afforded us the flexibility to get through the crisis without having to make major job cuts.”

Since as early as mid-2010, ZF employment figures have also been rising. In the course of the year, ZF Group has hired approximately 4,000 additional employees, 900 of whom in Germany. Its total workforce has thus risen to over 64,000, and the trend will continue: ZF aims to create a further 3,000 jobs in the coming year, with roughly 1,000 of them in Germany.

In terms of internal investments, ZF Group is also forging ahead. Its investment program for 2011 consists of just under 1 billion euros.

“We’re investing very heavily in our technological leadership and our global presence,” says ZF CEO Härter. A particular focus is on the US market, where ZF is currently building wind power and car transmission plants, in addition to expanding its power steering production capacity. In Germany, ZF is also enlarging its transmission plant in Saarbrücken and is building a new administrative building in Passau. Finally, ZF remains true to its tradition of being an engine of innovation: R&D expenditures in 2011 will total approximately 750 million euros.