Auto parts supplier ZF Friedrichshafen AG is considering selling part of its axle assembly business as the industry transitions to electric vehicles, people familiar with the matter said.

ZF is working with Deutsche Bank AG to find potential partners for the business, the people said. It is reported that the business provides axle OEM services.

ZF focuses on the production of high-performance transmissions for high-end internal combustion engine vehicles. Axle assembly is part of ZF's line of chassis systems and modules, which will generate sales of about 4.5 billion euros ($4.7 billion) in 2021, the people said.

Image credit: ZF

A ZF spokesman said in an email that the company has launched a strategic review of the axle assembly unit to "unlock its full potential", which could lead to changes to its structure or the introduction of new partners . As part of the assessment, ZF is preparing for a possible spin-off of the business.