BMW orders hybrid automatic transmission from ZF

Struggling supplier ZF Friedrichshafen has secured a long-term supply contract with BMW. The core of the agreement is the delivery and further development of the eight-speed automatic transmission (8HP) "special focus on electrified drives," extending into the late 2030s.

The ZF 8HP has been used for many years in continuously updated versions, primarily in large cars with longitudinally mounted internal combustion engines—either in purely conventional drivetrains or, increasingly, in hybridised systems, including plug-in hybrids. BMW has long been a key ZF customer for automatic transmissions.

The recent deal announced by ZF not only secures the supplier from Lake Constance an order worth several billion euros but also offers insight into BMW’s drivetrain strategy. The Munich-based manufacturer is known for its commitment to technological openness and has deliberately avoided setting an end date for its internal combustion engine models. It is now clear that BMW plans to continue using this drivetrain for more than a decade. According to ZF, the contract “runs until the late 2030s.”

ZF has not provided further details about the scope of the deal, stating only that it involves “a volume of several billion euros.” Neither production figures nor the distribution between conventional and electrified automatic transmissions have been specified—this is likely not yet finalised and will be adjusted based on demand over the long contract term. Against this backdrop, ZF emphasises the planning security gained. “Through future close collaboration, risks in a rapidly changing market environment can be reduced, and the foundation for low-emission mobility of the future can be laid,” the company stated.

Largest single order since 2019

For the Electrified Powertrain Technologies division (Division E), this major order is initially good news—it is the largest single order in many years. Due to challenging business conditions, Division E is at the centre of the group’s restructuring, accounting for more than half of the jobs set to be cut. ZF manufactures the transmission in Saarbrücken (Germany), South Carolina (US), and Shanghai (China). However, the exact terms of the new contract remain unknown. In recent years, ZF has accepted orders worth billions of euros at times on non-cost-covering prices simply to secure contracts—likely including from BMW. Even if the terms are more favourable this time, such a long-term contract carries risks: to remain capable of delivery into the late 2030s, ZF must continue investing in production for the long term—even if demand shifts earlier than currently anticipated.

“Together with BMW, we are sending a strong signal for innovation, efficiency, and sustainability in an industry undergoing dynamic change,” says ZF CEO Mathias Miedreich. “This agreement highlights the strategic importance of our 8-speed automatic transmission as a key technology for the transformation of drive systems.”

“The new agreement with BMW shows how important long-term planning horizons are for technological advancements,” emphasises Sebastian Schmitt, Head of the Electrified Powertrain Technologies Division at ZF. “It creates clarity and stability for both companies and enables us to align the next generation of the 8HP specifically toward efficiency, performance, and long-term viability.”

zf.com, handelsblatt.com (in German)