Struggling German auto supplier ZF has agreed to sell its driver assistance systems division to Samsung subsidiary Harman International. The business unit, Adas, has been valued at €1.5 billion, ZF announced on Tuesday in Friedrichshafen. The acquisition still requires regulatory approval, with the transaction expected to close in the second half of 2026.
According to ZF, approximately 3,750 employees are expected to transfer to Harman. The deal covers “compute solutions, smart cameras, radar technology, and driver assistance software functions,” while ZF will retain its electronics for chassis technology and passive safety systems. ZF will also continue operating in commercial vehicle driver assistance and autonomous driving.
“With the acquisition of ZF’s driver assistance unit by Harman International, we have reached an important milestone in the strategic realignment of the Group,” said ZF CEO Mathias Miedreich. The sale will significantly reduce ZF’s financial liabilities and allow the company to focus on core technologies such as chassis, powertrain, commercial vehicles, and industrial applications.
“This acquisition is a strategic step to enable a more connected future with smarter and safer vehicles,” said Christian Sobottka of Harman. The US-based company was acquired by South Korea’s Samsung in 2017.
Automotive expert Ferdinand Dudenhöffer described the transaction as a “win-win deal for both companies.” “Samsung is expanding its Smart Cockpit business, a key and growing sector for the car of the future,” he explained. For ZF, the €1.5 billion proceeds represent an important step toward debt reduction, potentially lowering liabilities by about 10 percent.
The German auto industry continues to face challenges from weak global demand, rising costs, Chinese competition, and increased US tariffs. ZF, Germany’s second-largest supplier after Bosch, announced in October plans to cut 7,600 jobs in its electrified powertrain division by 2030, saving around €500 million by 2027. Overall, ZF aims to reduce 14,000 positions by 2028 as part of a broader cost-cutting program.
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