Final Approval issued by Chinese Authorities: Way clear for Daimler’s Truck Joint Venture with Foton
Stuttgart, Germany/Peking, China, ---
Beijing Foton Daimler Automotive Co., Ltd. (BFDA) has received its final approval from the Chinese Ministry of Commerce (MOFCOM).
“This is an important step for the global growth strategy of Daimler, as well as the local expansion of our portfolio,” says Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler and Head of Mercedes-Benz Cars. “With our 50 percent stake in Beijing Foton Daimler Automotive, we are further strengthening our position as an important player in the China market. Having now received the final green light for the joint venture, this also sends out a clear signal that we deliver on what we promise.”
The final approval for the joint venture between Daimler Trucks and Foton Motor marks another important step in the implementation of Daimler Trucks’ Global Excellence strategy and will allow it to thoroughly participate in the growth of the Chinese truck market. In 2010, the Chinese market for trucks over six tons GVW had a volume of 1.2 million units. Forecasts indicate that about 1.5 million trucks over six tons GVW will be sold annually in China from now until 2020.
“This marks a milestone for the joint venture between Daimler and the Chinese truck manufacturer, Foton Motor, and for the implementation of Daimler Trucks’ worldwide strategy,” says Andreas Renschler, a member of Daimler’s Board of Management and Head of Daimler Trucks and Buses. “The flexibility, persistence, patience, and intercultural understanding of both parties were decisive factors in forging this partnership and obtaining the final go-ahead.”
“Receiving the final approval from the Chinese Ministry of Commerce is an important step in our China strategy, which is based on a thorough understanding of and long-term commitment to this country. Thanks to the great progress made during the past few months, the way is now clear for both partners to establish the joint venture,” says Ulrich Walker, Chairman and CEO of Daimler Northeast Asia. “Through this joint venture, Daimler will gain a 50 percent stake in Foton Motor’s medium- and heavy-duty truck business. This further strengthens our position to address all segments of the market in China: passenger cars, trucks, vans and financial services.”
Daimler will contribute its technological expertise to the joint venture — especially in the area of diesel engines and exhaust gas systems — so that Chinese emissions limits, ranging up to the Euro V standard, can be fulfilled. Localized production of Mercedes-Benz’s redeveloped OM 457 engines will be an integral part of future operations at the joint venture.
“We are very pleased to see that the joint venture between Daimler Trucks and Beiqi Foton has obtained approval, since Daimler is a longstanding associate of ours here in China. This marks another milestone in the strategic cooperation between Daimler and BAIC”, says Xu Heyi, Chairman of BAIC.
“Both partners will use Foton’s truck brand Auman as a platform to grow business in China and look at cooperation opportunities outside of China. In addition to making use of our sales and service network for the medium- and heavy-duty truck sector, Foton Motor will also contribute its market know-how in China and the rest of Asia to the joint venture,” explains Wang Jingyu, CEO and President of Foton Motor.
Foton has experienced rapid growth since entering the truck business in 1998. Last year it sold nearly 105,000 units of medium- and heavy-duty trucks (and nearly 66,500 units during the first half of 2011) and is therefore already a key player in China’s truck segment. A second truck plant is already being ramped up, giving the Beijing Foton Daimler Automotive joint venture a total production capacity of 160,000 trucks.
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