Foton Motor to produce light trucks in Mexico this year

Shanghai, June 12 (Gasgoo.com) China's largest commercial-vehicle producer, Beiqi Foton Motor, a subsidiary of Beijing Auto (BAIC), will start to produce light trucks in Mexico later this year, Inside Line reported yesterday, citing Foton's Mexican unit.

Initially, Foton will invest as much as $15 million to prepare a plant for light truck production. The plant will be an expansion of its existing facility where the Chinese company produces tractors in the central-eastern state of Veracruz near the Gulf of Mexico.

In the second stage, Foton Motor will build a variety of trucks in its Mexico plant, including pickups and SUVs, and will export them to the U.S. and South American markets. The annual Mexico production of Foton vehicles is expected to reach 50,000 units.

Foton entered the Mexico market in 2008 as a distributor of agricultural vehicles, and sold 1,500 units last year. The company now sees higher demand in Mexico for light trucks and its Foton brand will be well received there.

The Mexico project is seen as part of Foton Motor's ambitious global strategy as the Chinese automaker plans to build more assembly plants overseas, such as in Brazil, India, Indonesia, Thailand and Russia.

China has recently approved a $900-million truck-making venture between Foton Motor and Daimler AG. Foton aims to become the world's largest maker of commercial vehicles by 2020.