UPDATE: BMW Gives ZF Its Biggest Order Ever

ZF Friedrichshafen AG says it has received a multi-billion-dollar order from BMW AG for its next-generation, 8-speed automatic transmission.

The multi-year contract is ZF’s largest ever, according to CEO Wolf-Henning Scheider. Production of the new gearbox due to start at the company’s factory in Saarbrucken, Germany, in 2022. Output at ZF plants in China and the U.S. will ramp up later.

ZF says the new transmission (pictured) can be installed in almost any vehicle with a front-longitudinal drive configuration, including conventionally powered and electrified vehicles. This will allow carmakers to quickly switch production mixes between vehicles, the supplier notes.

ZF is investing €800 million ($910 million) over the next four years to boost production at its Saarbrucken facility. The initiative will include using artificial intelligence tools and digital manufacturing to help improve analytics and the decision-making process.