ZF CEO Still Concerned About Trump; TRW Signs to Disappear

BRATISLAVA, Slovakia – Three months ago, ZF CEO Stefan Sommer questioned President Trump’s eagerness to scrap free-trade agreements and impose taxes on vehicles and components imported into the U.S.

At ZF’s Global Press Event here, Sommer tells WardsAuto he remains concerned Trump’s protectionist leaning will derail much of the momentum that has carried the North American industry through several strong years, as well as hurt the American economy.

“I strongly believe in free trade and in free-trade zones,” says Sommer, who suggests short-term benefits of taxed imports will be overshadowed by the eventual loss of companies that will steer business away from U.S. shores to avoid punitive taxes.

“That will be the consequence. This is proven in history, and I still believe that,” Sommer says. “I hope at the end it will be a reasonable solution.”

The executive says he understands Trump’s campaign for a “strong America,” but Sommer has a broader view. “We want a strong world economy or Western free-trade zone which we also discussed in the past. We need something as a countermeasure against the rapidly growing Asian market and (the) Chinese system of growing their economy. I hope we can join forces.”

Sommer says he hopes cooler heads prevail. “This is nonsense from an economic standpoint.”

Meanwhile, two years after ZF acquired U.S.-based brake, steering and electronics supplier TRW for $12.4 billion, the two company logos no longer will share space on buildings.

TRW logo going away.

Since the purchase, the ZF logo has been added beside the TRW badge atop some 80 plants, corporate offices and product-development facilities that now fall under ZF control, including many in the U.S.

Management told employees early on the two logos would share space temporarily and the TRW logo eventually would disappear.

But ZF spokesman Bryan Johnson says the time has come to remove the TRW logo, because its presence is creating confusion externally.

People in the industry seeing both badges still on buildings in Metro Detroit think the two companies formed a joint venture instead of carrying out the acquisition, Johnson says. Those buildings include ZF’s new North American headquarters in Livonia in the space that used to be TRW’s main office.

[email protected]