Rivals Meritor Automotive and ZF form transmission joint venture

LAS VEGAS (June 10) — Rival transmission-makers Meritor Automotive and ZF Friedrichshafen AG plan to form a joint venture to produce a new line of automated transmissions for the North American heavy- and medium-duty truck markets.

ZF and Meritor each will own 50% of the new venture, to be called ZF Meritor LLC. Financial terms were not disclosed; the transaction is expected to close next month.

ZF, based in Germany, is one of two predominant independent suppliers of transmissions to the commercial truck market in Europe (the other being Eaton Corp.). It does not build transmissions for heavy-duty truck manufacturers in North America.

The companies said the joint venture would combine the strengths of Meritor’s marketing and distribution capabilities and existing line of transmission products with ZF’s technological and engineering expertise. The joint venture will be managed by Rick Martello, who will serve as president of ZF Meritor. He has been general manager of Meritor’s transmission, clutch and driveline business.

ZF Meritor is ZF’s second transmission joint venture in recent months. The company is working with Ford Motor Co. to build an advanced automatic transmission that improves fuel economy by as much as 15%.