Daimler Foton deal gains NDRC approval
German automaker, Daimler, has approval to start a new joint venture with Beiqi Foton Motors for HCVs
Nearly two years after the initial agreement was signed, a 50:50 joint venture between Daimler and Chinese truck maker Beiqi Foton Motors has secured approval from China's influential National Development and Reform Commission (NDRC) to produce heavy commercial vehicles.
The new joint venture will grant Daimler a foothold in China, whilst providing Foton with superior technology and access to key global export markets in Europe and the U.S.
An initial investment of around 6.35 billion yuan ($936 million) will be tendered to build a new plant in Beijing's Huairou district, which will have an annual production capacity of 100,000 vehicles and 45,000 diesel engines. The vehicles will be primarily distributed across China and other key Asian markets, including India.
Daimler CEO, Dr Dieter Zetshce, hopes the new joint venture will act as a “springboard” from which the German automaker can achieve “growth, profitability and expansion in the Chinese market.”
Currently, Beiqi Foton is the world's second largest commercial vehicle manufacturer, behind Daimler, with a presence in 37 countries and intends to expand production into Russia, Mexico and India.
