Tan Xuguang, chairman of Weichai Power speaks at the opening ceremony of the first Qingdao Multinationals Summit in East China's Shandong province on Oct 19. [Photo provided to chinadaily.com.cn]

Weichai Power, a leading Chinese heavy-duty truck and components developer, shared its experience in global cooperation at the first Qingdao Multinationals Summit, in Shandong province on Oct 19.

The group has been expanding in the global market by investing in industrial giants, including German truck supplier KION, French marine engine producer Moteurs Baudouin, and Italian yacht maker Ferretti. 

“The key to our strategy is adopting a specialized model, namely the Weichai WOS Management Model,” said Tan Xuguang, chairman of Weichai Power at the opening ceremony.

The core theory is to unify management languages with index, improve operation efficiency with order, target customer needs with culture, and promote enterprise value with quality, according to Tan.

Highly compatible and adaptable, the model has proven successful in Weichai Power's subsidiaries at home and abroad.  

In Weichai Power, said Tan, the operation of overseas subsidiaries is led by native teams and managers and assisted by executive groups from China.

Currently, Weichai Power's overseas business accounts for 40 percent of its total revenues. In the past five years, the compound annual growth rates of overseas revenue and profit raised respectively by 30 percent and 47 percent, making the Weichai brand known across the globe.

Tan also noted that investors must have an open mind and seek for cooperation rather than control.

"Investment is not for one side," added Tan, "The term 'mergers and acquisitions' is not in my dictionary. To me, investment is all about cooperation and profits for both sides.”