Daimler and Foton Motor Announces China Joint Venture

Daimler announced today it has signed a joint venture agreement with Foton Motor (a subsidiary of BAIC), in the presence of German Chancellor Angela Merkel and the Premier of the People’s Republic of China Wen Jiabao. According to the German manufacturer, the deal is a key milestone in implementing the company’s China strategy and further strengthen its position on the market.

“The NDRC approval of the joint venture with Foton Motor in China is a key milestone in Daimler Truck’s overall strategy,”
said Andreas Renschler, member of Daimler’s Board of Management and Head of Daimler Trucks and Daimler Buses. “The joint venture offers us an excellent springboard from which we can achieve growth, profitability and expansion in China, and with Foton as a global partner, in the international markets as well.”

Daimler will bring its technological expertise to the area of diesel engines and exhaust gas systems to meet the Chinese emissions limits ranging up to Euro 5. Both partners will use Foton’s truck brand Auman as a platform in China and as a springboard for joint exports.

“With the newly established joint venture with Foton Motor, Daimler has now become the first and only international automotive manufacturer that had successfully deepened its cooperation with China in all segments of the automotive industry,"
said CEO and Chairman of Daimler North East Asia, Ulrich Walker, in a release. "All of these joint venture projects stemmed from Daimler’s thorough and long-term commitment to China," he added.

According to Daimler, the joint venture will expand Daimler’s industrialization in China to include trucks, in addition to passenger cars and vans.
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