In an unexpected move, ZF’s Supervisory Board Chairman, Heinrich Hiesinger, has departed the company amid growing criticism of his leadership approach and three years ahead of his contract’s expiration in 2028. Replacing him will be Rolf Breidenbach, former Chief Executive of compatriot automotive supplier Hella, who has served on ZF’s board since 2023.
Hiesinger led the board for only three years but has faced both internal and external scrutiny of his leadership approach. According to Handelsblatt reporting, the former chairman did not exert enough pressure on the board to act during critical situations. An unnamed source told the outlet that he also lacked sufficient understanding of the automotive supply business. Before joining ZF, Hiesinger served as Chief Executive for German steel manufacturer Thyssenkrup.
The development comes as ZF reckons with substantial challenges. During the summer of 2024, the supplier announced it planned to cut as many as 14,000 jobs in its electrified powertrain technologies division. The division handles powertrains, as well as transmissions for both hybrid and internal combustion engine vehicles.
Handelsblatt subsequently reported that the company is weighing plans to spin off this division—historically its core business—in February 2025. Even though the division’s order book exceeds US$30bn, it may have undercut its competition to secure contracts, potentially at the expense of profitability. “Even if we complete the orders in full, we will accrue a loss in the single digit billions over the next three years,” an insider told the newspaper. ZF aims to cut costs by €6bn (US$6.5bn) by the end of 2025.
In an official statement, ZF thanked Hiesinger for his “outstanding work” as supervisory board chairman. However, despite attempting to turn the page, there is some controversy around his successor’s arrival. Breidenbah previously worked for global consultancy McKinsey, which currently advises ZF on its cost-cutting programme. Other former McKinsey alumni at ZF include Chief Executive Holger Klin, Head of Strategy Gracianna Petersen, and HR Head Lea Corzilius.
Breidenbach’s appointment also comes in the context of local politics. In his first statement as Mayor of Friedrichshafen, Simon Blümcke said: ““After careful consideration and in close consultation, the two ZF shareholders, the Zeppelin and Ulderup Foundation, have accepted the offer […] With his many years of diverse experience in the automotive and automotive supply industry, [Breidenbach] has outstanding qualifications to constructively support ZF’s challenging transformation process.”
Friedrichshafen has served as the headquarters of ZF since the company was founded in 1915. Despite his new role as mayor, Blümcke remains in place as boss of the Zeppelin Foundation, which holds a 93.8% stake in ZF. Notably, he joined the part supplier’s supervisory board in December 2024.
