DaimlerChrysler is buying a stake in Chinese truck company Beiqi Futian as part of a deal to make Mercedes-Benz vehicles in the world’s fastest-growing vehicle market, state media said on Thursday, according to Reuters.
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As part of a $US1.1 billion deal with Beijing Automobile Holdings announced on Monday, Daimler would buy some shares of Futian, Beijing Auto’s truck-making arm, Reuters said, citing the China Securities Journal.
According to Reuters, the pact with Beijing Auto, which makes Jeep vehicles for sale in China, aims to produce 25,000 Mercedes sedans annually by 2012, and the agreement also includes plans to make Mercedes trucks, heavy duty engines and other commercial vehicle components.
Reuters noted that the Chinese bought nearly a million cars in the first seven months of this year, about 75% more than the same period last year, but, while truck sales were more than 700,000 units in that period, they rose less than 7%.
