Stuttgart, Germany – Daimler has established a joint venture with Foton Motor to enter the truck business in China. The German automaker already sells passenger cars and vans in that country.
The 50-50 joint venture has received approval by the relevant Chinese government authority.
“The joint venture with Foton Motor represents another key milestone in implementing our China strategy,” said Dr. Dieter Zetsche, CEO of Daimler AG. “It further strengthens our position to address all segments of the market. And it shows that we deliver what we promise, taking full advantage of the enormous potential in China and other growth countries.”
Daimler will contribute technological expertise to the joint venture, particularly in the area of diesel engines and exhaust gas systems, allowing the trucks to meet Chinese emissions limits, while Foton will contribute its sales and service network. Both partners will use Foton’s Auman truck brand as a platform in China, and as a springboard for joint exports.
Foton entered the truck business in 1998 and last year sold 82,234 heavy-duty trucks.