Daimler to Sign Joint Venture Deal in China

Daimler and Beiqi Foton Motor Co. will produce medium and heavy trucks.

Daimler will sign an agreement for a commercial vehicle joint venture with China's Beiqi Foton Motor Co. on August 7, the Chinese truck maker said.

The deal comes after Shanghai-listed Foton Motor scrapped plans to sell a 24% stake to the German luxury automaker late last year after failing to win government approval.

The company has said that under a new agreement, Foton and Daimler will discuss ways to work together to produce medium and heavy trucks, including a joint venture.

Daimler also has a joint venture with Foton's parent, Beijing Automotive Industry Holdings Corp., which makes Mercedes-Benz sedans.

Copyright Agence France-Presse, 2008

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