Daimler’s planned truck alliance with China’s Beiqi Foton has fallen apart, leaving Daimler looking for a new entry strategy for the Chinese commercial vehicle market.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


Daimler has been trying to get truck production started in China for almost four years, according to Automobilwoche. Now the company has had to go back to the drawing board.


Beiqi Foton and Daimler had signed a Memorandum of Understanding to explore opportunities to set up a joint venture, a Daimler spokesperson told Automobilwoche. Forming a joint venture was seen as the quickest way of establishing medium and heavy truck production in the country.


The main hindrance to the project going ahead appears to be that Daimler had planned to take a 24% stake in Foton. The cost of acquiring this stake had become considerably more expensive thanks to a strong rise in the company’s share price.


It appears that the Chinese authorities may also have withdrawn their support for the project because it was taking so long to get off the ground.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The failure of the joint venture means that Daimler will now probably have to start all over again in applying for permission to set up a joint venture. This can take a long time in China.


Daimler originally started discussing a joint venture with Foton in 2003. They signed an agreement to set up a joint venture and received the first permissions from local authorities. In the meantime China introduced legislation restricting the number of joint ventures a foreign company can have in the country to two car and two truck projects. Because Daimler already had a venture for buses and one for light trucks, a third venture for heavy trucks was initially blocked. Daimler was considering taking a direct share in Foton to bypass this rule.


Ironically, in the meantime Daimler has since disbanded its bus operation, so it is once again free to set up a joint truck production venture.