German automotive components manufacturer ZF Friedrichshafen is injecting $500 million into its transmission plant in South Carolina to facilitate the production of parts for both internal combustion engine (ICE) and plug-in hybrid vehicles, spanning passenger cars to commercial trucks.
The investment will see the transformation of the sprawling 1.7 million-square-foot Gray Court facility into a versatile manufacturer capable of accommodating various vehicle types. ZF plans to introduce its PowerLine transmission in the United States, offering modular design that promises up to 10% fuel savings compared to conventional transmissions.
The PowerLine transmission’s adaptability caters to both ICE and plug-in hybrid variants, spanning from lightweight passenger vehicles to heavy-duty trucks. ZF Gray Court’s expansion aligns with the industry’s shift towards sustainable mobility solutions.
Stephan von Schuckmann of ZF highlighted the plant’s role as a pioneering flex manufacturing hub, geared towards addressing evolving industry demands. The initiative is set to create 400 new jobs, with the factory aiming for an annual production capacity of 200,000 transmissions by 2025.
The investment follows a previous $200 million commitment aimed at supporting major US commercial vehicle manufacturers. ZF is also exploring federal incentives to bolster its investment plans.
Moreover, ZF’s expansion efforts extend to Mexico, with significant investments in new facilities in Juarez and expansions in Toluca. Despite global workforce restructuring plans, the company’s focus on innovative manufacturing reflects its commitment to meeting the evolving needs of the automotive sector.