Leading market position in transmission, powertrain, chassis technology, and in active and passive safety components. Favorable long-term growth prospects, underpinned by increasing demands for more fuel efficiency and safety requirements. Good geographic and product diversity, partially offset by concentrated customers. However, ZF has long-term business relationships with most of its original equipment manufacturers. Limited ability to improve profit margins in the short term. Exposure to the cyclical and competitive car and light commercial vehicle component market. Stronger leverage metrics and our expectation of further deleveraging. Solid track record of cash flow generation. Mostly long-term debt maturities. Adequate liquidity, albeit more enhanced than previously. The stable outlook on Germany-based auto supplier ZF Friedrichshafen AG (ZF) reflects S&P Global Ratings' view that
