ZF Group plans to invest $500 million into its transmission plant in South Caroliona, aiming to transform it into a flexible manufacturer of parts for electric and gasoline-powered vehicles alike as well as both passenger and commercial vehicles.
ZF said it will add new product lines over the next several years at the plant. As part of that, the company is launching North American production of its fourth-generation eight-speed transmission for plug-in hybrids, which ZF also makes in Germany for the BMW 7 Series and X5.
The investment comes as ZF and other suppliers attempt to strike the right balance between investing for an EV-dominated future while ensuring they have the capital and capacity to produce for gasoline-powered vehicles in the meantime, particularly in North America as EV sales growth slows. The Gray Court investment will allow ZF to have the flexibility it needs to meet customer demand, the company said.