This article originally appeared in the September 2018 issue of the Power Systems Research PowerTALK report. Click here for PowerTALK Archive.

Mr. Tan Xuguang, Chairman and CEO of Weichai Power, has been named Chairman and CEO of China National Heavy Duty Truck Group Co., Ltd. (CNHTC). CNHTC, or Sinotruk Group, is a Chinese state-owned truck manufacturer. Xuguang is Chairman and CEO of CNHTC. 

Mr. Tan, known for his bold moves and remarks about the industry, is already putting into motion new measures to streamline the business and products of CNHTC.

As this transition develops, there are many bigger things to watch. For instance, how will Weichai Power manage the synergy between CNHTC and Shaanxi Heavy Duty Truck (currently owned by Weichai and a competitor of CNHTC)? Moreover, the fact that Weichai was once owned by CNHTC, and now owns CNHTC, makes this more dramatic than most business mergers and acquisitions. Further complicating the situation is Shaanxi Heavy Duty Truck's desire to manage its own course as a Shaanxi Province company, rather than submit to being part of the newly expanded Weichai, now more than ever under the umbrella of Shandong Province.

This deal will cause ripple effects in the truck market, and will also affect buses, construction equipment and other markets. This is going to be a very interesting situation to follow. PSR