Stuttgart, Germany – Daimler AG has agreed to purchase 10 per cent of Kamaz, the largest truck manufacturer in Russia. The agreement will enable Daimler Trucks to enter the Russian volume market and is part of the company’s growth strategy in the BRIC (Brazil, Russia, India and China) countries.
Under the terms of the agreement, Daimler will pay the equivalent of US$250 million in December 2008, with another one-time payment of up to $50 million due in 2012, subject to Kamaz’s successful business performance. Daimler will also receive a seat on the board of directors.
The two companies are aiming for a mutually beneficial cooperation, with Daimler Trucks contributing its technologies, and components such as the cab of the second-generation Mercedes-Benz Actros. Kamaz has production facilities, sales structure and a retail network in Russia and will support the market entry of the Mitsubishi Fuso from Daimler. The companies have also said they may pursue joint projects involving Mercedes-Benz buses.
Daimler Trucks said that its holding in Kamaz will give it a further strategic advantage in view of the expected increases in Russian import duties for vehicles. Russia is one of the largest regional truck markets in the world, with total sales of more than 154,000 units in 2007. Daimler Trucks sold 1,300 new vehicles in Russia during that year. Despite the current financial and economic crisis, the market is expected to continue to grow over the next few years, particularly in the heavy-duty segment.