Daimler-Foton truck venture in China to build as many as 160,000 units a year
Daimler AG and Chinese truckmaker Beiqi Foton Motor Co. say their new 6.4 billion yuan ($1 billion) joint venture will produce as many as 160,000 commercial trucks a year for sale in China and overseas.
The partnership, Beijing Foton Daimler Automotive Co., will build medium- and heavy-duty trucks for Foton's Auman brand, Foton said in a statement.
China's government approved the joint venture last September.
Foton, a major Chinese truckmaker, sold nearly 105,000 medium- and heavy-duty trucks last year. The joint venture is building a second truck plant in Beijing's Huairou district that will give the partnership total annual production capacity of 160,000 trucks.
The venture also will produce 45,000 Daimler diesel engines a year.
Trucks built by the joint venture will be sold in and outside China. The trucks will meet Euro 5 emission standards, according to Daimler.
"This is an important step for the global growth strategy of Daimler, as well as the local expansion of our portfolio," Daimler CEO Dieter Zetsche said in a statement. "With our 50 percent stake in Beijing Foton Daimler Automotive, we are further strengthening our position as an important player in the China market."
In addition to its joint venture with Foton, Daimler has a partnership with Foton's corporate parent, Beijing Automotive Industry Holding Corp., to produce passenger vehicles.
