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Allison, who worked closely with German driver Michael Schumacher in a previous stint with Ferrari, left his last job as Lotus technical director in May.
Ferrari have appointed James Allison as their technical director from September 1, the Italian Formula One team said in a statement on Monday.
Pat Fry will assume a new position as director of engineering and both men will report to team principal Stefano Domenicali.
Allison, who worked closely with German driver Michael Schumacher in a previous stint with Ferrari, left his last job as Lotus technical director in May.
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