Foton, Daimler, joint venture--Daimler, Foton Solidify Joint Venture

Daimler and Foton Motor have signed a contract forming a 50-50 joint venture that is intended to will allow the company to continue its expansion into China and Asia. Foton Motor is a subsidiary of Beijing Automotive Industry Corporation (BAIC). The joint venture will expand Daimler’s industrialization in China to include trucks, in addition to passenger cars and vans.

Daimler said it will contribute technological expertise - especially in the area of diesel engines and exhaust emissions systems – which will allow Chinese emissions limits ranging up to Euro 5 to be fulfilled. Both partners will use Foton’s Auman truck brand as a platform in China and as a springboard for joint exports. Along with its sales and service network in the medium- and heavy-duty truck sector, Foton will contribute its market know-how in China and the rest of Asia to the joint venture. Last year Foton said it sold 82,234 heavy-duty trucks in China.

“The joint venture offers us an excellent springboard from which we can achieve growth, profitability and expansion in China, and with Foton as a global partner, in the international markets as well,” said Andreas Renschler, member of Daimler’s Board of Management and Head of Daimler Trucks and Daimler Buses.

Wang Jingyu, CEO and president of Foton Motor, said that Foton will “use Daimler Trucks’ technological expertise in particular to further expand our commercial vehicle activities. The establishment of the new joint venture marks our first step towards global businesses and collaborations.”

Source: Diesel Progress Online