Foton Daimler JV officially begins business

Gasgoo.com (Shanghai August 30) - The Foton Daimler joint venture has officially begun business, Economic Observer News reported today. The joint venture, which is equally owned between truck manufacturer Beiqi Foton and Daimler AG, has been heralded as revolutionizing the traditional business model of automobile manufacturing JVs in China.

Foton Daimler, the product of nine years of negotiations, was officially established in late February of this year. At that time, the first Chinese Auman GTL truck made its worldwide market debut. Both companies have invested a total of 6.35 billion yuan ($1.02b) in the JV, whose total registration capital is valued at 5.6 billion yuan ($884.23m). Daimler Board of Management Member overseeing Daimler Trucks Andreas Renschler has been selected to be the board chairman of the JV. He will be assisted by Foton Deputy General Manager Wu Yuejun, who has assumed the posts president and CEO.

Foton Daimler differs from other Sino-foreign automobile joint ventures in that it is not competing using a foreign brand, but a Chinese one. "The [mutual] goal of both parties is to maintain and improve the image and position of Auman trucks in the country," a Foton official was quoted as saying. The JV hopes that its Auman trucks, now equipped with Mercedes-Benz engines, will be able to come to the forefront of the Chinese truck market.