Germany's Daimler to Make Trucks in China

Sept. 26, 2011
Vehicle manufacturers are turning to China for growth amid a global economic slump.

German automaker Daimler said it has received Chinese-government approval for a truck joint venture, as the world's vehicle makers look to China for growth amid a global economic slump.

Daimler Truck, a unit of the German company, would hold a 50% stake in the venture, which would have annual production capacity of 160,000 trucks, Daimler said.

The Chinese partner in the joint venture -- Beijing-based Foton Motors -- is a key player in China's truck market, selling 105,000 vehicles last year. Foton is a unit of industry giant Beijing Automotive Industry Corp.

"This is an important step for the global growth strategy of Daimler, as well as the local expansion of our portfolio," Daimler chairman Dieter Zetsche said in the statement.

The Daimler group includes the Mercedes-Benz brand.
The deal will give Daimler a 50% stake in Foton's medium- and heavy-truck business, the company said.

The joint venture also would move toward localized production of a truck engine developed by Mercedes-Benz.

Financial details of the agreement were not given.

The two companies signed a joint venture agreement in July 2010, but the deal was subject to approval by China's Ministry of Commerce.

China has become an increasingly important auto market after it overtook the United States two years ago to become the world's largest. Last year, China's auto sales rose more than 32% to a record of more than 18 million vehicles.

But that blistering pace has slowed after China phased out some sales incentives.

Copyright Agence France-Presse, 2011

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Building on Resilience

March 24, 2024
Splunk surveyed leaders across the manufacturing industry and 44% of them reported weekly critical outages due to security incidents. And over half of them said that they don’...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!