Beiqi Foton, Daimler rift on CV venture negotiation

Beiqi Foton Motor Co., Ltd., China's largest commercial vehicle producer, rifts with Daimler in their negotiation on the establishment of a joint venture, disclosed a person in the know.

Both sides inked an agreement on the cooperation of commercial vehicle manufacturing on January 29, 2009, according to which they will first set up a medium- and heavy-duty truck venture, and then seek similar cooperative projects in other burgeoning markets around the world.

The venture will produce heavy-duty trucks under Beiqi Foton's brand Auman and bring the products into Benz's global commercial vehicle brand system.

Both sides will set up global operation centers to foray into the burgeoning markets. Beiqi Foton will expand to the oversea market through Daimler's technology and sales network, while Daimler will gear up in the Chinese commercial vehicle market by making full used of Beiqi Foton's resources.

However, both sides then diverged in their following negotiation. Daimler, paying high attention to brand and technology, held different opinions to the production of Auman-branded heavy-duty trucks by the venture, let alone absorb the products in its own global commercial vehicle brand system.