
Why Chinese OEMs Move Faster: Ramiro Gutierrez on Value, Software, and Automotive Leadership
Tariffs bought this industry a window. Ramiro Gutierrez, President of North America, ZF Group, is not convinced we are using it. He has spent 30 years in the automotive industry, and he left it once. Aerospace turned out to be slower than he expected, with cycles running roughly five times longer, and he returned to ZF for engineering. What he came back to is a company spending around 8% of revenue on R&D and now under real pressure to prove that money produces a return. That pressure is where this conversation starts, and it goes somewhere most tier one interviews do not. Ramiro walks through what his Chinese customers are doing with hardware ZF has already put on the vehicle. A customer looked at ZF’s active suspension and figured out that lifting a wheel lets you change a flat tire without a jack. At CES, ZF showed a tire-noise function built from a damper and a chassis sensor, both already on the car. Same hardware, new functionality, software doing the work. Meanwhile, the Western specification book has been growing for a hundred years, page after page, all for good reasons, until it moved past anything a customer can feel. The cost is real, and the value is not. Ramiro is direct about tariffs. He calls them a tool in the sandbox, useful for buying time. He is just as direct about what happens if the industry spends that time defending the status quo instead of closing the gap. Then there is the leadership half of it. He is president of ZF North America and head of the global steering business unit, sitting between a German foundation owner under enormous pressure and a workforce spread across the US, Mexico, and Canada. His answer to that complexity is not a new org chart. It is communication treated as an investment, people sent to see other realities with their own eyes, consensus built and then closed, and accountability that sounds like “where are we” rather than “why didn’t you.” The clock is running. Ramiro believes the future is bright. He also believes we have to move. Themes Discussed in this Episode Creating value through software, not more hardware Why Chinese OEMs adopt technology faster Tariffs as a tool with an expiration date The hundred-year specification problem Communication as a leadership investment Positive accountability without micromanagement Leading a German-owned business across three countries Engineering ambition meeting financial discipline This episode is sponsored by Lockton, click here to learn more 🎥 Watch the full episode on YouTube: https://www.youtube.com/@jangriffithsautomotiveleaders Featured Guest: Ramiro Gutierrez, President of North America, ZF Group Ramiro has led ZF Group's North America region since June 2024, based in Northville, Michigan, and he also heads the company's global Steering business unit, which puts him at the center of the by-wire chassis technology ZF is now putting into production. This is his second tour at ZF. He joined in 2005 as a sales director, rose to senior vice president of sales, and left in 2017 for Aptiv and then Howmet Aerospace, where he was president of Engineered Structures. Thirty years in this industry on both sides of the Atlantic gives him a read on the Chinese market that very few North American executives have. About Your Host – Jan Griffiths Jan Griffiths is the champion for culture change and the host of the Automotive Leaders Podcast. A former automotive executive with a rebellious spirit, Jan is known for challenging outdated norms and inspiring leaders to ditch command and control. She brings honesty, energy, and courage to every conversation, proving that authentic, human-centered leadership is the future of the automotive industry. Mentioned in this Episode: 21 Traits of Authentic Leadership Episode Highlights [02:14] Two tours at ZF: Ramiro left automotive for aerospace, expecting something different, found the cycles about five times longer, and came back for the engineering. [06:38] Engineering money has to earn its keep: ZF spends roughly 8% of revenue on engineering, and Ramiro explains why every euro of it now has to show a return. [08:58] The flat tire that changed the conversation: A customer took ZF’s active suspension and figured out how to lift a wheel instead of using a jack, then how to rock a car out of a sand trap. All of it through software. [13:42] Cost reduction versus value reduction: Jan asks how to get this thinking into legacy automotive. Ramiro names the trap: taking cost out by taking value out, and the customer feels it. [15:57] Steer-by-wire and video games at the charger: Decoupling the wheel from the rack opens up functionality nobody paid extra hardware for, and Ramiro names who is doing it first. [18:58] Tariffs are a tool in the sandbox: Useful for buying time to compete and change. Dangerous if that time creates an artificial bubble instead. [20:57] Send him to China: Rather than another briefing, Ramiro told his government relations lead to get on a plane, because some realities cannot be explained through words. [24:57] The engineering dream meets the P&L: As a foundation-owned company rather than a listed one, ZF has always had financials in the room. Ramiro explains why they are now the drumbeat and what that does to culture. [28:54] A hundred years of specifications: Page after page added for good reasons, until the spec book passed what a customer can perceive. Ramiro’s engineers drive a vehicle from another region and call it no good, and the answer is that people there buy it by the hundreds of thousands. [31:46] Who are you as a leader: Straightforward, sometimes too direct, consensus first, and then execution. He describes the two kinds of people you find when a commitment slips, and which one you can build an organization on. Top Quotes [27:35] Ramiro Gutierrez: “The adoption of technology that we have in front of our Chinese OEMs is exponentially higher than the adoption of technology that we have from our traditional OEMs.” [34:00] Ramiro Gutierrez: “If you have the first kind of individuals, the only option for you is to go micromanage, and then it’s going to kill you.” [35:56] Ramiro Gutierrez: “I look at communication as an investment. You invest in getting everybody aligned with what you think is the right thing to do.” If this episode resonated, share it with a fellow automotive leader and subscribe to The Automotive Leaders Podcast, where we’re shaping the future of authentic leadership in the automotive industry. This podcast episode is also available on YouTube. Check out our YouTube channel at Jangriffithsautomotiveleaders Send us your feedback or questions — email Jan at Jan@Gravitasdetroit.com.
















