MOTION POWERED BY CHASSIS TECHNOLOGY

ZF Friedrichshafen AG Car Chassis Technology 49447 Lemförde Germany Phone +49 5474 60-0 Fax +49 5474 60-902000 www.zf.com twitter.com/zf_konzern facebook.com/zffriedrichshafen youtube.com/zffriedrichshafenag MOTION POWERED BY CHASSIS TECHNOLOGY CAR CHASSIS TECHNOLOGY Edition 2015

Contents CAR CHASSIS TECHNOLOGY WE MOVE PAGE 4 CHASSIS FOR TOMORROW PAGE 6 EVERYTHING FROM A SINGLE SOURCE: COMPLETE AXLE SYSTEMS FROM ZF PAGE 12 BRIGHT FUTURE: CHASSIS COMPONENTS FROM ZF PAGE 14 INNOVATIVE INTO THE FUTURE Car Chassis Technology from ZF moves people around the entire world, safely, comfortably, and reliably. Creating the future of the automobile drives our engineers forward. Today, there are already new axle concepts and innovative components and systems with extensive functions on the market. These will play a major role in the automobile megatrends that are shaping the automobile industry. Regardless of whether we drive a conventional, hybrid or purely electric car, whether we steer or let the advanced driver assistance systems take over the wheel for a short time or over longer distances, car chassis technology from ZF is indispensible for reliability, safety, comfort, and driving dynamics. ALWAYS IN CONTACT WITH THE ROAD WITH VERTICAL DYNAMICS FROM ZF PAGE 16 AKC FROM ZF: TWIN STEERING IS BETTER PAGE 20 THE ART OF TESTING PAGE 22 RESEARCH & DEVELOPMENT TO SECURE MOBILITY PAGE 24 THE ZF GROUP PAGE 26 2 3

CAR CHASSIS TECHNOLOGY WE MOVE ZF is an expert partner in the automobile industry when it comes to the development and production of chassis systems, suspension technology, or chassis components. A nice ride is a slang expression often used to refer to a car but it also illustrates the importance of comfort, provided mainly by the chassis. Today, the car has become more than just a vehicle for getting from A to B. Yet the chassis has remained of critical importance. Almost no other system in a passenger car is so close to driving physics and almost no other system shapes our sense of comfort, safety, and the driving dynamics of a moving vehicle more than the chassis. Front and rear axles establish contact with the road for the wheels and tires they even enable the vehicle to be maneuvered in a controlled manner by transferring the acceleration, braking, and steering forces to the road. So that this can also occur in any driving situation without limits, the suspension elements in the chassis smooth out the bumps in the road while vibration dampers prevent the vehicle body from pitching. The configuration of the car chassis defines how safe and comfortable the drive will be in the respective car, it influences how space can be utilized in the vehicle and also its weight. The right hardware is required No wonder that with such a complex set of tasks, the development and production of passenger car chassis technology are not exactly trivial. The following general rule still applies: first, the hardware has to be right. This means that the mechanical configuration of the axle and the wheel suspension must be in order before active systems and electronic aids in the chassis can optimally respond. Automobile manufacturers frequently turn to ZF and its many decades of experience for support in the development and testing of entire chassis systems, they are also often willing to hand over responsibility for the complete assembly of the front and rear axles to the technology company. Innovative concepts for lightweight chassis designs as well as the strategy of integrating electro-mechanical actuators into the chassis, thereby expanding the functional scope of the suspension, show just how far ZF is looking into the future. An important basis of this overall chassis expertise is the fact that chassis component development and production is a mainstay of ZF s business. From stabilizer links, control arms, and ball joints to shock absorbers and wheel carriers, the passenger car chassis still consists of a multitude of components that interact with one another and have specific functions in the overall system. That is why expertise concerning the complete axle requires knowledge of its individual systems and components. The Car Chassis Technology Division bundles all passenger car chassis development, testing, and production services within the ZF Group. The division is made up of the Chassis Systems, Chassis Components, and Suspension Technology business units, which, together, have a workforce of about 15 600 employees worldwide. When developing innovative chassis technologies, the division works closely together with advanced engineering in the ZF Group and today is already driving the development of chassis technology of tomorrow. 222 million CHASSIS COMPONENTS ANNUALLY WORLDWIDE 60 million SHOCK ABSORBERS ANNUALLY WORLDWIDE 4.3 million CHASSIS SYSTEMS ANNUALLY WORLDWIDE 4 5

CHASSIS FOR TOMORROW Chassis technology from ZF looks to future issues in automobile manufacturing: Axles are becoming lighter, are being powered purely by electrical systems, and are becoming part of an integrated system network in the car. If you look back at the last decade, automotive technology has changed more than in any other decade before it. Alternative drive systems have found their way into the car, lightweight designs have reduced vehicle weight, and electronic systems have achieved a level of functionality that not only makes driving easier for drivers, but could relieve them of having to drive at all for periods of time. Regardless of whether it is a car with a combustion, diesel engine, hybrid engine, or one that is purely electric, regardless of whether the car is made of sheet steel, aluminum, composite materials, or even a mix thereof, and lastly, no matter whether it comes with the most modern advanced driver assistance systems or is driven automatically over stretches of road one thing remains indispensable: that the vehicle has optimal contact with the road. Herein lies the essential origin of driving dynamics, safety, and comfort. And it is the chassis that continues to guarantee this. A holistic approach: lighter weight axles The massive change happening in automotive engineering, ones which will continue in the coming years and even rise, will directly impact the passenger car chassis. A clear example of this is lightweight construction. Automobile engineers are looking at the car from every angle to find ways to reduce weight. Less unladen weight reduces fuel consumption as well as CO 2 emissions. Both are meeting the trend toward energy-efficient, sustainable mobility. These actions are already being mandated by lawmakers in many parts of the world in the form of emission limits for passenger car fleets. Lightweight design goes one step further The trend of reducing weight in the chassis has been around for a while. After all, fewer kilos on and around the wheel also mean lower unsprung weight transfers, which enable the vehicle to respond more sensitively and more dynamically at the same time. That s why there has been a portfolio of lightweight and ultra lightweight chassis components for many years, from control arms to shock absorbers. However, current approaches in automobile design in general and in chassis systems, in particular, are going above and beyond reducing the weight of isolated components. Design engineers are taking a holistic approach in which the functions of two or more components are being integrated into one single, newly designed component, which then weighs less than the sum of the other components previously used. When developers look at the complex interaction of the components in a passenger car chassis in an entirely new light, taking lightweight design into consideration, this is called lightweight concept development. In this process, designs emerge that are also visually different from the conventional passenger car axles. Furthermore, modern manufacturing processes can also reduce weight, for example, when fewer joining materials, such as rivets or screws are needed. ZF has been consistently applying all lightweight strategies in passenger car chassis for years. Lighter weight materials, such as aluminum or fiber-reinforced plastic (FRP), also play just as important a role in the process as new design approaches regardless of whether it is individual components or complete axle systems. One fundamental new approach can be seen in the lightweight rear axle with wheel-guiding transverse spring from ZF. In contrast to the complex multi-link concept, here a single component consisting of a transverse spring made of glass-fiber reinforced plastic assumes several chassis functions at the same time, such as wheel guidance and suspension. This not only reduces weight, but also the complexity of the axle. It also offers yet another advantage in that it is easier to install in the car. After all, at the end of the day, it is not the reduced weight that is decisive for the production start-up of new chassis systems. Rather, it is about the sum of all the advantages that result from ZF s holistic approach to lightweight design. 6 7

WHEN MECHANICS MEET ELECTRONICS or when innovative lightweight materials are used, this creates the basis for mobility concepts of the future. WEIGHT REDUCTION of 13 % in comparison to multi-link rear axles CDC ACTIVE DAMPERS ADAPT THEMSELVES IN REAL TIME TO EVERY DRIVING SITUATION AKC INNOVATIVE SYSTEMS FOR TRACK ALIGNMENT ALSO ENABLE REAR AXLES TO STEER 13 % BRAKE PEDAL LIGHTWEIGHT BRAKE PEDAL: INNOVATIVE MATERIALS SUCH AS FIBER-REINFORCED COMPOSITES FOR MORE SAFETY ERC SENSOR INTELLIGENT ELECTRICAL ACTUATORS STABILIZE THE VEHICLE WHEN CORNERING FROM BALL JOINT TO BIG DATA: INFORMATION ON DRIVING CONDITIONS RECORDED BY THE INTEGRATED SENSOR MODULE CAN BE USED TO SUPPORT AUTOMATED DRIVING FUNCTIONS Wheel-guiding transverse spring made of glass-fiber reinforced plastics integrated into the lightweight rear axle for passenger cars. By integrating these components, the complexity and the weight of the axle are reduced. Networked overview: From the advanced driver assistance system to automated driving Though the integration expertise of ZF chassis engineers can be seen in current concept vehicles, it has long been a part of standard vehicle design. The chassis of many of today s volume production vehicles benefit from active, electronically controlled systems developed at ZF. The integration of active, mechatronic systems lies at the heart of many advanced driver assistance systems that make driving both safer and more comfortable. With this technology, today, numerous manufacturers are already able to move their cars across long distances without any human interference. This automated driving is a further central trend of the future in the mobility industry. It represents greater safety because it removes the human risk factor, which is, unfortunately, still the number one cause of accidents today. In certain traffic situations, for example, stop and go traffic on the highway, automated driving adds comfort and saves time. If automated cars become part of everyday life on highways and byways, then the significance of chassis technology will change. If drivers spend more quality time in their cars because they can use the transfer times to read, work, or communicate more intensely with others, the demand for ride comfort will rise, which will place greater demand on the chassis. For automotive suppliers like ZF, the trend toward automated driving will open up new opportunities, for example, in the form of intelligent park assist functions that will park the car, unmanned, in the tightest of spaces. Integrated into the axle: Electric drives Weight savings in car chassis make all vehicles more energy efficient, regardless of whether they are powered by conventional combustion engines or are electrically driven. For purely electric cars, a lightweight design is particularly important because each gram eliminated increases the car s drive range, which, in turn, increases acceptance of this local, emissions-free drive form among drivers. However, the job of chassis developers is far from finished when it comes to electromobility. 8 9

ELECTRIFICATION etb - Electric Twist Beam Close collaboration in the ZF Advanced Urban Vehicle concept vehicle: the innovative front axle allows for a steering angle of up to 75 degrees supported by the torque vectoring system of the Electric Twist Beam (etb) at the rear for greater agility. A torque vectoring system on the etb rear axle stabilizes the vehicle due to steering intervention from the rear in critical situations. The drive system thus intervenes if the chassis enters the limit ranges. Network expertise and also special knowledge of driveline and chassis technology are thus essential in this case. L3 AXLE with AKC and EVD MODULAR The fact that one or more electric motors can be housed relatively free in the automobile does allow for entirely new drive configurations. ZF has already implemented this in one development project: With the Electric Twist Beam (etb), two electric motors each with 40 kw output are installed on the right and left wheel of a twist beam rear axle. This drive concept integrated close to the wheels in the axle offers benefits mainly for subcompact cars and microcars. At 80 kw, sufficient engine output is available, whereby the torque can be additionally allocated to the individual wheels. Using torque vectoring, the rear axle can support the steering movements of the front axle the vehicle responds with both greater agility and stability while safety and driving dynamics also increase. Additionally, the etb opens up a lot of space in the center of the vehicle because, for example, the subframe for a central motor that is fixed to the body and mechanical drive components such as side shafts are no longer necessary. Innovative axle concepts Offering driveline and chassis technology from a single source that has always been ZF s strength in the eyes of the customers. This strength will also remain intact in the era of E-mobility. For the customers, this considerably reduces development costs because ZF handles the coordination of internal interfaces. ZF develops, fine-tunes, and tests the axle, together with the electric drive, in accordance with the requirement specification. In the process, different axle types can be used depending on the application. One special feature of the L3 axle concept is its modularity. A comparably simple basic axle can be enhanced, depending on the customer s needs, by adding an electric or conventional drive module and/or rear axle steering. The modular L3 rear axle design provides valuable potential for future axle types, for example in combination with AKC and the Electric Axle Drive System EVD. Advanced Urban Vehicle online at www.zf.com. ITS MODULAR DESIGN AND FLEXIBLE COMBINED USE ARE STANDOUT FEATURES OF THE L3 AXLE L3 basic axle L3 basic axle with AKC L3 basic axle with AKC and Electric Axle Drive System L3 basic axle with AKC and conventional rear axle transmission 10 11

Chassis Systems Everything from a single source: Complete Axle Systems from ZF For over 20 years, ZF has delivered, just-in-time and just-in-sequence, complete axle systems to the assembly lines of automobile manufacturers. Annually, ZF assembles at 15 locations in nine countries about 4.3 million ready-to-install axle sets tailored to the respective vehicles. Attractive partner in axle system development and assembly for the automotive industry for over 20 years. 1994 Front and rear axles take over a central role in the passenger car: They transfer all the forces and torques between the wheels and vehicle body, thus ensuring that the wheel potential is optimally utilized in all driving conditions. Several components that have to be perfectly fine-tuned to one another and tailored to the individual requirements of the respective vehicle model are responsible for this. That s why many car manufacturers purchase them as complete axle systems directly from ZF and do so around the world. Since 1994 as the first supplier of axle systems ZF has built up a network that, today, consists of 15 car axle assembly locations for synchronous production delivery in the USA, Great Britain, Austria, South Africa, India, Malaysia, Thailand, China, and Australia. Because ZF axle plants are never more than 30 kilometers away from the customers production location, it takes max. two to four hours between a parts delivery request and the delivery of the finished product to the assembly lines of the car manufacturer. A strong partnership with local suppliers is a requirement here. The required parts and components are usually purchased locally or are supplied by other ZF locations worldwide. Depending on volumes, setting up in-house component production may be a viable alternative. Axle Systems online at www.zf.com 12 13

BRIGHT FUTURE: CHASSIS COMPONENTS FROM ZF Axles, wheels, shock absorbers, springs: Drivers do not usually see much more than these larger components in the chassis of their cars. Yet even in the most modern designs, a multitude of small components working behind the scenes handle important chassis functions. CHASSIS COMPONENTS with many functions and a low weight: The versatility of a car chassis is determined essentially by the chassis components. ZF is continously developing these components further using lightweight materials such as aluminum or plastics for their manufacture, in addition to traditional steel design. They provide a moving connection between the control arms and the wheel carrier, reduce a car s pitching when cornering, and transfer the steering movement to the front wheels all as a matter of course. Wheel and cross-axis joints, tie rods, stabilizer links, control arms, wheel carriers, and hubs operate outside the limelight in the chassis. Unjustly, too, because as the core components of the wheel suspension, they essentially determine vehicle handling and safety. The individual components working together in harmony is decisive in the process. As a supplier of chassis components as well as complete chassis systems, ZF is a one-stop shop when it comes to comprehensive chassis expertise, thus ensuring that all components dovetail perfectly with one another. Intelligently networked: Building blocks for the chassis of the future Chassis design nowadays goes far beyond the traditional conflict between comfort and a dynamic chassis configuration. This is because concepts involving future mobility, i.e. local, emission-free and autonomous driving, are placing entirely new demands on the vehicle chassis. Lightweight designs, improved materials, and the use of new materials are already playing a major role in development. The electrification of the chassis, especially, is setting off the emergence of entirely new functions while also demonstrating the potential that lies in traditional components. A current example of this is the newest ball joint generation from ZF. Its design engineers integrated an electronic sensor module into what was originally a purely mechanical component. This module will record information on driving conditions directly in the ball joint. This information could form an additional valuable data basis for various assistance systems. The same principle was also applied to a trailer hitch with a kink angle sensor, which, in the Trailer Parking Assistant, makes it possible to park vehicle-trailer combinations safely, stress-free, and without the driver. However, it makes no difference whether the components are electric or conventional: the car chassis cannot do without any chassis components in the future. ZF is well-positioned for both. Ball stud Ball race Tie rod Hybrid stabilizer link Lightweight control arm Wheel carrier Maintenance-free ZF ball joint Sealing boot Housing WORLDWIDE 17 CHASSIS COMPONENTS PRODUCTION LOCATIONS 14 15

ALWAYS IN CONTACT WITH THE ROAD WITH VERTICAL DYNAMICS FROM ZF For almost every application, ZF has the right suspension technologies on hand: from modular valve technology to the electronic CDC system that offers efficient damping through all networked systems. Whether in curves or on the straightaway, whether accelerating or braking, almost empty or fully charged, the shock absorbers still continue to definitively determine how safely and competently a car masters all eventualities. A tire can only transfer the forces longitudinally and transverse dynamically as long as it is in contact with the road. Also, a car can stay in its lane, even during sudden high-speed maneuvers and extremely uneven surfaces, only if it does not tend to pitch. How well a chassis meets these two conditions, and the extent to which the brakes, steering, or ESP follow the commands, depends heavily on the quality and the performance of its shock absorbers. Leading in the development and production of vibration damping modules, ZF offers an appropriately broad and advanced portfolio. This keeps the car driving on the safe side. Continuous further developments and groundbreaking future technologies additionally lend ZF products one other outstanding quality: They are increasingly combining the benefits of a comfortable and soft tuning with that of a dynamic, firm setup. They have thus succeeded in joining two tuning concepts long thought to have been completely irreconcilable. These developments and technologies are also increasingly evolving into the perfect partner for electronic assistant functions, among others, that are gaining significance on the road to autonomous driving. Performance from the ground up Already in their standard variants, with millions installed, the proven single and twin-tube damping systems from ZF have overcome very demanding chassis challenges. They meet all criteria which modern vehicle platforms require when it comes to quality, weight, installation space, efficiency, and flexible areas of application. New low-noise valve generations are making a valuable contribution toward optimized total vehicle acoustics. Furthermore, ZF can modify its shock absorbers to meet customer needs at any time, regarding characteristic curves, to name just one example, thus tuning the car s entire system so that it precisely meets individual, model-specific, and desired characteristics. This applies equally to ZF suspension strut modules, which, in addition to vibration damping, also handle wheel guidance. With its Sensitive Damping Control (SDC), ZF has shown the advances that can be achieved in traditional shock absorbers through innovative valve and piston systems. SDC offers split shock-absorber characteristics which make all chassis feel considerably more comfortable, whether they are tuned for safety or tuned for a sportier drive style. Other new select valve functions are part of continuous, further development efforts. The SDC has one thing in common with the Nivomat system, which keeps the rear axle at a constant level for each vehicle load: Both technologies work without requiring additional power. PERFORMANCE IN ALL VARIANTS OF THE SUSPENSION SYSTEMS Effective vibration damping Improved ride comfort Gains in driving dynamics Improved safety Optimized NVH behavior 16 17

CDC Continuous Damping Control for all driving situations: With interior or exterior valve systems integrated on the shock absorbers. CDC 1XL Eliminating vibrations smartly They can be steered through any lean angle more Meanwhile Continuous Damping Control (CDC) has dynamically and comfortably. revolutionized the car chassis. ZF thus offers automobile manufacturers a technology that does not require Combined added value them to compromise safety, dynamics, and comfort With its broad and comprehensive expertise in elec- when it comes to damping. This is because CDC adapts continuously and in real-time to the respective driving situation smoothly, precisely, and wheel-specific. With trically controlled chassis systems, ZF is optimally positioned for the future. Its CDC, ERC (Electric Roll Control), or rear axle AKC active kinematics control can 18 million the current fourth generation of this damping system, the production numbers have considerably exceeded the double-digit million threshold. However, not only the innovative function itself has contributed to this be easily integrated into the automobile system network with a view toward fully automated driving in the future. The benefits that result from combining these systems may have an additional positive impact, since the ZF WAS THE FIRST COMPANY TO DEVELOP, FOR VOLUME PRODUCTION, CONTINUOUSLY ADJUSTABLE CHASSIS CONTROL SYSTEMS FOR PASSENGER CARS IN 1994. SINCE THEN, IT HAS ROLLED MORE THAN 18 MILLION CDC UNITS OFF OF ITS PRODUCTION LINE. CDC motorcycle system success. It is also due to the fact that ZF always has vehicle remains stable longer within the limit ranges, been developing more CDC variants for more and more hard-interfering systems like the ESP do not have to vehicle segments. step in to regulate until much later or even at all. And Originally reserved solely for luxury class vehicles, it has recently been making even vans as well as compact if active technologies from ZF additionally work with camera-based assistants or navigation systems, the chassis, for example, will adjust itself in advance to handle CDC online at www.zf.com. and subcompact cars safer in the form of the rear axle deep potholes or curvy, mountainous roads. version CDC 1XL. In the meantime, even motorcycles are benefitting from specially developed CDC systems: 18 19

AKC AKC from ZF: Twin Steering is Better Do you want to experience a safer, more controlled, and more comfortable vehicle on the road, yet enjoy greater agility, dynamics, and driving fun? You can thanks to Active Kinematics Control (AKC) from ZF. A rear steering angle of up to five degrees, which effectively assists the front wheels with all cornering maneuvers. 5 AKC enables car chassis to noticeably track better because it transforms rear axles into active steering control systems. Through the electromechanical actuator, it changes the rear toe-in or turning angle of the wheels by up to five degrees. This has a positive impact in almost any driving situation as well as for cars in almost every vehicle segment. For example, it helps high-performance sports cars like the Porsche 911 Turbo and 911 GT3 models achieve faster lap times. With it, fully-fledged premium SUVs like the Audi Q7 can maneuver through narrow parking garages almost as nimbly as small cars. Variable like the requirements For speeds lower than about 60 km/h, the electronically controlled ZF system turns the rear wheels in the opposite direction to the front steering wheel. This increases agility and maneuverability, so that parking maneuvers can be completed effortlessly and rapidly. Ever tried turning a large car around on a narrow street? This is no problem thanks to the AKC because the turning circle is reduced by up to ten percent. At a higher speed starting at about 60 km/h the active tracking alignment shows the rear wheels in the same direction as the front wheels. The vehicle itself thus follows abrupt high-speed steering commands consistently, stably, and precisely. It is equally beneficial for safety and driving dynamics. Another advantage: With the AKC integrated into the control network, assistance systems like ESP do not have to step in until much later, if even at all. To do justice to almost all vehicle-specific requirement profiles and installation space dimensions, ZF developed the AKC system as a modular kit. This approach enables it to be used in many different axle configurations: either with a central actuator in the middle of the rear axle or with a total of two actuators on the toe links of the rear wheels. AKC-Video online at www.zf.com. 20 21

THE ART OF TESTING From its computer simulation tools and high-tech test benches valued industry-wide to its in-depth expertise in road testing, ZF developments mean uncompromisingly safe, best-in-class chassis. New products and systems are already benefiting from the development know-how of the technology group as early as the initial planning phases: Long before even just one component is produced, ZF developers bring the desired design to life virtually using a networked development environment via MKS, CAD, or FEM. This enables the engineers to forecast later drive characteristics and to compare different solution concepts using multi-body simulation software like ADAMS/Car, for example. Also, the question of materials for each component is decided at the outset using the calculation produced with the Finite Element Method (FEM). If the axles pass their digital load tests, ZF developers produce continuously refined CAD designs. From these, the first real component prototypes are derived that already start out with a very high maturity level score. Testing on the test bench The virtual development worlds are decisive in meeting both the growing time and cost pressures as well as the increasing complexity. Yet it is the first real tests on the test bench that make product development complete. Numerous and also unique high-tech test benches are ready and waiting to test component prototypes or even entire chassis systems to their limits under lab conditions. ZF axle test benches, in particular, are in high demand beyond the confines of the company. After all they can simulate loads, for example, from real test drives precisely and as frequently as desired around the clock and regardless of weather, which shortens the entire development time by up to 20 percent. Experiencing perfection After the virtual and stationary preliminary checks, the chassis now almost ready for production start-up at ZF must also prove themselves in extensive actual test drives. These test drives are mainly about final fine tuning, whereby ZF prefers daily commuter traffic conditions for comfort testing and uses closed-off test grounds exclusively for extreme dynamic testing. High-precision measurement equipment once again plays a very important role, even if not the decisive one. Because, in the end, the following still applies today: Only the experienced drivers can filter out every last little thing that enables a chassis with objectively optimal parameters to still feel subjectively perfect: ZF lends it precisely the durable character that a car manufacturer would want for any specific model. 22 23

RESEARCH AND DEVELOPMENT TO SECURE MOBILITY Innovations are not an end in themselves, they must pay off: For manufacturers, fleet owners, and drivers, but also for the environment and society. Each new development must prove itself within the conflicting priorities of these criteria. The ZF Group draws on an international network of more than 100 development centers. Approximately one fifth thereof are main development locations for certain products and technologies. These can be found at several locations in Germany and Europe as well as in the USA and China. Corporate Research and Development at the Corporate Headquarters in Friedrichshafen coordinates and supports the activities of the development centers. Every year, ZF invests approximately five percent of its sales in Research and Development. With success, because innovative products from ZF set the standards for state-of-the-art technology again and again. Development work at ZF is organized according to decentralized and corporate functions. The divisions and business units focus on markets and product expertise, ensuring customer-centered, competitive technological product development. Corporate R&D works with a strong emphasis on basic research and theory, and supports the operational development departments in the divisions. Groundbreaking innovations Over the past years, this partnership has produced product innovations that have since become benchmarks in the industry: Just some examples are 9-speed automatic transmissions for cars as well as hybrid transmissions and hybrid management for cars and commercial vehicles, or the modular TraXon transmission systems for commercial vehicles. The modern chassis, in turn, successfully combines mechanics and electronics: With integrated sensors and active functions, the electronics are able to keep up with the CDC adaptive damping system or with the AKC track adjustment. Groundbreaking innovations from ZF are in use today not just in passenger cars and commercial vehicles on the road, but also in all kinds of craft on the water and in the air. What s more, the innovative power of ZF is set to increase in the future. Proof of this is already provided by the number of patents pending: A look at the statistics of the German Patent and Trademark Register shows that ZF is among the top ten applicants for patents on par with many large automotive manufacturers. Each year, the research departments successfully complete more than 10 000 projects, covering the full range from basic research to product applications. This high project volume is necessary to ensure mobility in the future. The trend towards hybrid solutions already shows that green drive technology is very complex. The same goes for pure electric drives and lightweight design engineering. Currently, ZF engineers are conducting pioneering work on alternative materials, broader approaches in design and testing, and new production processes. NETWORKS thrive on the fact that the decision makers meet in person, particularly for the advanced engineering process which often takes place in interdisciplinary teams across several locations. Learn more about Research & Development at www.zf.com. 24 25

THE ZF GROUP Shaping the future responsibly Our enthusiasm for innovative products and processes and our uncompromising pursuit of quality have made us a global leader in driveline and chassis technology, as well as in active and passive safety technology. We are contributing toward a sustainable future by producing advanced technology solutions with the goal of improving mobility, increasing the efficiency of our products and systems, and conserving resources. Our customers in the automotive and industrial sectors welcome our determined focus on products and services, which provide great customer value. Improvements in energy efficiency, cost-effectiveness, dynamics, safety, and comfort are key to our work. Simultaneously, we are aiming for continuous improvement in our business processes and the services we provide. As a globally active company, we react quickly and flexibly to changing regional market demands with the goal of always providing a competitive price/performance ratio. Our independence and financial security form the basis of our long-term business success. Our profitability enables us to make the necessary investments in new products, technologies, and markets and we thus secure the future of our company on behalf of our customers, market affiliates, employees, and ZF owners. Our tradition and values strengthen our managerial decisions. Together, they are both an obligation and an incentive to maintain a reliable and respectful relationship with customers, market affiliates, and employees. Our worldwide compliance organization ensures that locally applicable laws and regulations are adhered to. We accept our responsibility towards society and will protect the environment at all of our locations. Our employees worldwide recognize us as a fair employer, focusing on the future and offering attractive career prospects. We value the varied cultural backgrounds of our employees, their competencies, and their diligence and motivation. Their goal-oriented dedication to ZF, above and beyond their own field of work and location, shapes our company culture and is the key to our success. 26 27