Beijing Auto eyes Fujian-Daimler CV venture

Shanghai, July 22 (Gasgoo.com) Beijing Automotive Industry Holding Corp (BAIC) is in talks with Fujian Motor Industry Group in southeast China to replace it as the local partner in a commercial vehicle venture with Daimler AG, Reuters reported today, citing a source.

Beijing Auto, which already makes Mercedes-Benz cars in partnership with Daimler in China, wants to take over the 50% stake held by Fujian Motor in its van manufacturing venture with the German automaker.

Fujian Daimler Automotive Co., Ltd., in which Daimler and Taiwan's China Motor Co hold a 34% and 16% stake, respectively, was established in June 2007, with an annual capacity of 40,000 units. The facility, based in Fuzhou city, capital of Fujian province, will start making Vito and Viano vehicles later this year and Mercedes-Benz Sprinter next year.

Earlier this year, Daimler reached agreement with Beijing Auto's subsidiary Beiqi Foton Motor to make heavy-duty trucks. If the deal with Fujian Motor comes through, it could be the third vehicle manufacturing venture between Beijing Auto and Daimler.

Daimler's Mercedes-Benz unit, which rivals BMW globally, sold 27,000 cars in China in the first half, up 50% year on year. Local production of the all-new Mercedes-Benz E class sedan will start in October, with China-made parts accounting for 40%.