German auto parts giant ZF company builds factory in Changchun
October 04 10:16:00, 2025
ZF Fuao Chassis Technology (Changchun) Co., Ltd., the 15th branch of ZF in the world's fifth-largest automotive supplier and Germany's third-largest supplier, has officially been established. This joint venture was formed by German ZF Group, a leading chassis technology manufacturer, and China's major auto parts company, Fu Ao Auto Parts Co., Ltd. The total investment is RMB 40,347 million, with Fu Ao holding 49% and ZF holding 51%. In the first phase, an additional RMB 434.7 million will be invested to produce 50,000 front and rear axle assembly modules for passenger cars, 83,000 suspension rods for commercial vehicles, and 82,000 steering rods.
With the rapid growth of China’s automotive industry, the local auto parts sector has gained significant opportunities to integrate into the global supply chain. Joint ventures have become a key strategy for Chinese auto parts companies to scale up quickly. Recently introduced regulations on the localization of imported auto parts have further emphasized the need for higher domestic content. At the same time, fierce competition in the domestic market has pushed automakers to boost localization rates and cut costs. In response, many multinational automotive and component giants have set up joint ventures in China to build key manufacturing facilities, such as engines and chassis systems, aiming to address localization challenges more effectively.
The main products of ZF Fuao Chassis Technology include passenger car front and rear axle modules, chassis components for passenger cars, and chassis parts for commercial vehicles. Major clients include FAW-Volkswagen, Shanghai Volkswagen, FAW Liberation, and Chery. Notably, ZF Fuao will supply the front and rear axle modules for the new domestic Audi A6L.
According to the plan, in 2005, the company will provide around 25,000 front and rear axle modules (including pre-derivatives and four-wheel drive versions) to FAW-Volkswagen, with the number expected to rise to 45,000 units in 2006. Currently, the company is also engaging with Beijing Benz, BMW, Beijing Hyundai, and FAW Toyota. It is anticipated that in the future, over 50% of the company’s sales will come from FAW Group, marking a significant step in its expansion and integration into the Chinese automotive market.