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The Brand Philosophy of Weichai: Create an International High-end Brand Cluster to Show Strong Forward-going Power

2017.06.22

 

On June 21, the 2017 Shandong Century-longBrand Forum & Chinese Industrial Brand Tour in Shandong with the theme of "Establish high-end brand and create century-long business" was held in Shandong Building.

 

Weichai Group vicegeneral manager Chen Daquan speaks at the forum

At the forum, Weichai Group vicegeneral manager Chen Daquan introduced the brand development of Weichai at the forum. He said that the development of Weichai brand began in the 1970s. Over the years, Weichai attaches great importance to brand building work. Through the two-wheel drive and innovation development, Weichai has formed a brand cluster consisting of Weichai engine (as the lead), Shacman heavy truck, Fast transmission, Handeaxle, Ferretti yacht, KION Forklift, Linde hydraulic part, Dematic, PSI and other brands. With brand cluster effect and brand awareness being significantly improved, Weichai brandsare fully being discovered by the world. In 2014, Weichai was awarded the title of "Brand Cultivation Model Enterprise" by the Ministry of Industry and Information Technology. In 2015, Weichai won the first prize of China Machinery Manufacturing Brand in the "China Brand Value Evaluation Information Conference". According to the latest brand value assessment, Weichai brand value reached 22.5 billion yuan.

Born in the war of liberation in 1946, Weichai has gone through 70 years of ups and downs. Looking back, Weichai grows all the way into a hundred-billion worth international group. Behind the astonishing growth is wise business operation philosophy of transforming from a single domestic brand to a diversified international high-end brand.

Forward layout: use capital to create an international high-end brand cluster

 

Weichai Power gets listed in Hong Kong in 2004

In 1998, under the leadership of Tan Xuguang, Weichai had bold reform and innovation. Along with the implementation of property system reform, Weichai quickly got out of the woods and took off against the downward macro-economic situation. In 2004, Weichai Power successfully got listed in Hong Kong. At this point, the engine-based company's brand, "Weichai Power", is alreadywell-known to the country and in the leading position in the industry.

 

In 2007, Weichai Power returns to China Mainland stock market by being listed on the Shenzhen Stock Exchange

In 2005, Weichai used 10.2338 billion yuan in cash to acquire Torch Group that used to belong to Delong Group, holding Shacman, Fast, Hande and other core business. Since then, Weichai had changed from an engine manufacturer into anautomotive industry group owning vehicle, engine, transmission, axle, auto parts and other business.

 

In 2012, Weichai Power and KION signedthe strategic cooperation agreement

In 2009, for the needs of industrial restructuring and the implementation of international strategy, Weichai tested the water of overseas acquisitions withthe acquisition of Baudouin in France. Soon, Weichai made even bigger movesin the European market and created a "Weichai mode" for the capital market. In January 2012, Weichai reorganized the world's largest luxury yacht manufacturing company Ferretti Group. In the same September, Weichai signed the strategic cooperation agreement with the world's leading industrial forklift manufacturer and hydraulic technology company, KION Group. After the completion of this acquisition trilogy, Weichai's international blueprint gradually became clearer.

 

In June 2016, Weichai acquired the entire equity of the world's top logistics and transport provider Demmatic, to become a global leader in smart intralogistics solutions. In April 2017, Weichai invested in American alternative fuel power system manufacturer PSI to officially enter the North American market. At this point, Weichai's internationalization map is officially completed.

 

Smart integration: industry collaboration + culture diversity to play the strong power ofthe brand cluster

In 2016, Weichai Group ranked second in the top 100 Chinese machinery industry companieswith the annual revenue of 134.1 billion yuan. From January to May this year, Weichai achieved domestic and foreign operation income of 86 billion yuan, an increase of 80%. Behind the bright performance, it is the powerful kinetic energy of Weichai's brand cluster.

Cross-border mergers and acquisitions are easy, yet integration is difficult. In 2016, all Weichai overseas subsidiaries achieve profitability, and achieved "1 + 1>2" industry collaboration with the domestic brands. How does Weichai makethe brand cluster effect so remarkable?

Weichai chairman Tan Xuguang has the answer: "Chinese enterprises respond to the 'One Belt and One Road' strategy to go overseas. But it does not simply stop at purchasing a factory or the technology, and it certainly does not go with malicious acquisition or destroying one corporate culture with another. This is realized through industrial cooperation ,complementary advantages and common prosperity. To achieve industrial synergy, we must first achieve the integration of people and culture.

 

Weichai "WE ARE ONE" cross-cultural team building activities have been welcomed

The integration of culture is first of all about respect and tolerance. Along with business integration are "WE ARE ONE" and other themed cultural activities.

 

"WE ARE ONE" Sino-German Friendship Cup soccer game

By vigorously promoting the cultural exchanges with overseas subsidiaries, Weichai's "responsibility, communication and diversity" core cultural concept has been gradually recognized, and the advanced cultural factors of overseas subsidiaries have been absorbed into Weichai's cultural system. A new "Weichai Culture" is forming and begins to provide a steady stream of spiritual power for Weichai’s global brand cluster.

 

After Weichai completes the international layout, Weichai will no longer be a simple commercial vehicle related business, but a platform-based Groupwith a wealth of global high-quality resources and diversified business. In this platform, brand synergies will be fully released. For example, Weichai's smart logistics industry chain will include KION ware housing equipment and KION + Dematic intralogistics one-stop solutions. And Weichai's golden external logistics industrial chain will include Weichai Power engine + Fast transmission + Hande axle + Shacman heavy truck. These brands complement each other and play the brand cluster effect to the fullest, which will ultimately make Weichai the world's leader in the industryand promote the transformation of the Group's business structure upgrade.

 
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