Berlin, Germany – Daimler AG has announced its intention to form a Chinese partnership to build medium- and heavy-duty trucks. The German automaker signed a letter of intent with Beiqi Foton Motor Company to form a 50/50 partnership to build the trucks and exchange technology in China.
The letter is the foundation for the next step of the process, which is to gain approval of the Chinese government.
The joint venture will benefit from Daimler’s technology, especially in the area of diesel engines. The joint venture partners plan to use Foton’s Auman truck brand as a platform for growth in the lower-end commercial vehicle segment. With the new joint venture, Daimler will now have two commercial vehicle joint ventures and one passenger car joint venture in China, in addition to its financial services operations there.
“This joint venture is another step in realizing both our long-term commercial vehicle strategy and our China strategy,” said Dr. Rüdiger Grube of Daimler AG. “Foton is the right partner for us. This cooperation is a win-win situation for both companies and, most importantly, for our customers.”