Weichai Holding Group Co. Ltd., one of the largest commercial vehicle and automotive manufacturers in China, and German trailer brand Kögel signed a Letter of Intent (LOI) at the IAA Commercial Vehicle Exhibition in Hanover.
The two partners agreed to long-term collaboration in semi-trailer manufacturing where both partners will contribute with their “respective strengths”, as Ulrich Humbaur, owner of Kögel, revealed in a statement.
The official ceremony took place on the Kögel exhibition stand at the commercial vehicle exhibition IAA in Hanover, Germany. The Letter of Intent was signed by Tan Xuguang, Chairman and CEO of Weichai Holding Group and Ulrich Humbaur.
“Today is an important milestone for Kögel. The cooperation with Weichai is an essential part of our global growth strategy,” Humbaur said. “Kögel has an excellent reputation in China … [and] we will continue to build on this. We have found the ideal partner in Weichal.”
Tan Xuguang said, “Weichai has a pioneering role in the market as a result of their resources and product diversity. Our core business is the production of entire drive trains … for heavy trucks, buses and ships. Weichai is now expanding that product line as a result of the cooperation with Kögel.
“China can offer huge …cost advantages in the production of trailers. Both companies will be strengthened and they expect growth in sales, together with expansion of international recognition.“
Photo: Ulrich Humbaur, owner of Kögel Trailer GmbH & Co. KG and Tan Xuguang, Chairman and CEO of Weichai Holding Group at the signing of the LOI