From a bankruptcy engine factory to an influential international company in the equipment manufacturing industry, Weichai spent 9 years, sales revenue from 10 billion in 2004 to 100 billion in 2013. From the "outbreak of the three chapters of the reform of the "covenant law" to stimulate the dynamism of the enterprise's innovation and development, to the "two-wheel drive chained development" to embark on a larger stage, the next goal Weichai will strive to achieve the "13th Five-Year" end of sales break 200 billion.

In the Chinese domestic market Weichai owns such well-known brands as Weichai Engine, Fast Transmission, Hande Axle, and Shaanxi Auto Heavy Duty Truck. Standing at the historical point, Weichai has established the "Wuling Chai Dream" that builds a century-old enterprise and enters the world's top 500. Facing the challenges faced by the competition, Weichai successfully completed the "Trilogy" of overseas mergers and acquisitions.

Engines displayed in Weichai Science and Technology Exhibition Hall
Engines displayed in Weichai Science and Technology Exhibition Hall

In January 2009, Weichai acquired the French Baudouin company to further expand the full range of engine industry layout. In January 2012, it reorganized Ferretti, the world's largest luxury yacht manufacturer, to expand the group's industrial chain; 2012 In December of this year, strategically reorganizing the German KION Group and Linde Hydraulics, Weichai entered the world's leading forklift market, taking control of the core technical resources of the global hydraulic control system and revolutionizing the long-term reliance on imported high-end hydraulic products in China. The “Special Review Award” for the largest displacement motor boat with a capacity of 2000 tons or more issued by International Yacht Media Publishing Group was seized by CRN 80 meters flagship boat M/Y Chopi Chopi.

“So far, Weichai has established five global operation centers in Chicago, USA, Marseille, France, Foley, Italy, Frankfurt, Germany and Singapore, and established a global R&D center for “five countries and ten places.” Established offices in more than 30 countries. The company has developed more than 400 authorized service stations and its products have been sold to more than 100 countries and regions in the world. The number of engines overseas has reached 250,000 units, heavy trucks have exceeded 100,000 units, and an international marketing and service network has been initially established. At the end of 2015, Chai plans to set up 10 overseas subsidiaries, add more than 140 overseas service stations, and earn more than 30% of its total revenue from overseas operations, said Xu Hong, party secretary of Weichai Group.

Xu Hong believes that the engine business is entirely related to investment promotion, and the risk of macroeconomic impact and constraints is relatively large. High-end consumer goods such as yachts are at the end of the shock wave. Through the acquisition of Ferretti, Weichai’s sensitivity to economic fluctuations will become lower and lower. The merger and acquisition of Ferretti also made Weichai control the world's top yacht brands and the most advanced technologies.

Weichai Group Party Secretary Xu Hong introduced the development of the company
Weichai Group Party Secretary Xu Hong introduced the development of the company

The case of Weichai and KION cooperation is even more sensational. "At present, the global hydraulic system has been monopolized by Germany's Bosch Rexroth, the United States Eaton, Japan Kawasaki and other companies, Linde's Linde hydraulic technology is completely no less technical than these companies. Weichai strategic restructuring Linde hydraulic, the future will promote the world Significant changes have taken place in the development pattern of hydraulic control systems." Tan Xuguang once said. The mastery of core technologies means more opportunities and markets. When Weichai's industrial chain is extended downstream and the hydraulic system is a core component to fully contribute to the development of the industrial chain, it will win absolute competitive advantage for the company.

For the three cases of mergers and acquisitions, Tan Xuguang once made such a summary: Through the acquisition of the French Baudouin company, Weichai has accumulated valuable experience in operating international companies; through the reorganization of the Italian Ferretti Group, Weichai achieved a major breakthrough in structural adjustment. Through the acquisition of Kai Lun Linde Hydraulics, Weichai controls the core technical resources of the global hydraulic control system. And it is this "trilogy" that has enabled Weichai to achieve a leap from its domestic layout to a global one.

"According to the current market scale, we have selected a market with more than 5,000 units and annual sales of more than 1,000 units. In conjunction with the market environment and resource allocation, we have completed the construction of 10 support service centers this year. The establishment of this service center follows the regional division. The principle is to emphasize its radiation intensity in a certain area, for example, a support service center established in Moscow, Russia, will be able to radiate throughout Russia’s Eastern Europe and even Russia, and a support service center established in Dubai, United Arab Emirates, will be able to radiate Middle East. Ministry of State.” Xu Hong said when it comes to the development of the international market.

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