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ZF Friedrichshafen AG is restructuring its strategy to mitigate massive debt and enhance its financial position amid a slower-than-expected energy transition and rising interest rates. The company is focusing on hybrids and traditional mechanical components like gearboxes, rather than solely on electric vehicles.

ZF is adjusting its industrial approach to include electric, hybrid, and combustion engine vehicles, responding to a challenging market for battery electric vehicles. The company plans to improve its credit rating while managing significant refinancing obligations.