Daimler is investing around EUR700m in its Chinese truck joint venture with Beiqi Foton.
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The venture is a 50-50 joint venture and will produce around 100,000 turcks a year from 2012. In addition it will produce diesel engines from 2011.
The two companies announced that they would work together in August last year. They are now reportedly exploring further global cooperations outside of China and looking at Russia, South Asia and Latin America.
The joint venture is called Beijing Foton Daimler.
Daimler currently has no truck manufacturing operation in China, though it does produce cars and light trucks there.
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By GlobalDataBeiqi Foton is one of the smaller players in the Chinese truck market, and will benefit from being able to grow with the Daimler investment. Daimler will also help boost the company’s status in the country, according to one financial analyst interviewed by Reuters.
Beiqi Foton is forecasting 18% annual growth in the Chinese truck market in the next two years. Commercial vehicles sales were up 7.6% in the first 11 months of last year to 2.47m vehicles.
