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Business / Auto China

Weichai hopes new Ferrari deal will keep it in poll position

By Wang Zhenghua in Shanghai (China Daily) Updated: 2013-04-12 07:32

Weichai hopes new Ferrari deal will keep it in poll position

Ferrari Formula One driver Fernando Alonso of Spain negotiates the bend during the third practice session of the Malaysian F1 Grand Prix at Sepang International Circuit outside Kuala Lumpur, March 23, 2013. Weichai Power, a major sponsor of the Ferrari Formula One racing team, has its logo on the left to the Ferrari logo. [Photo / Agencies] 

Weichai Power, a major sponsor of the Ferrari Formula One racing team, is to strengthen its partnership with the Italian supercar maker, after signing a strategic alliance with it on technology development, brand promotion and market exploration over the next four years.

One of China's leading manufacturers of power-train system and heavy-duty vehicles, Weichai reached a sponsorship agreement in late January for an undisclosed amount with Scuderia Ferrari, the racing team division of Ferrari.

The agreement will expire at the end of the 2016 sporting season.

Tan Xuguang, Weichai Power's chairman and CEO, told a news conference in Shanghai that the alliance is an important step for Weichai to pursue brand globalization.

The sponsorship - the first the Italian automaker has signed with a Chinese company - is a good beginning, Tan said.

Ferrari Vice-President Piero Ferrari, son of the legendary founder Enzo Ferrari, said the two companies share a common spirit and vision, and that he was looking forward to in-depth cooperation with Weichai.

"We always look forward to what we do next and how to develop", Ferrari added.

He said the decision for Weichai to become a sponsor was quickly made after Ferrari proposed the idea to Tan, during a visit by him to Ferrari in Italy in 2012.

Song Xiaogang, the deputy secretary general of the China Machinery Industry Federation, called the alliance a "perfect match".

"Ferrari's cars run fast, but Weichai is developing even faster. The speed shared by the two makes them an excellent fit," he said.

By sponsoring Scuderia Ferrari, Weichai Power made a bold move to be the first Chinese company to do that and also illustrated how ambitious it is in going global, he added.

Weichai has been keen to build its brand over the past 60 years and has made breakthroughs in product innovation in particular in the past decade, he added.

"Its ever-increasing levels of internationalism make its tie-up with Ferrari natural," he said.

Weichai Power, which is headquartered in Weifang and part of the Shandong Heavy Industry Group, has been active in overseas markets.

In 2012, it paid 738 million euros ($928 million) for a 25 percent stake in German forklift truck maker Kion Group GmbH and a 70 percent stake in its hydraulics subsidiary.?

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