Daimler quits Yangzhou Yaxing, may enter Beiqi Foton

While the marriage between Daimler and Chrysler ends, DaimlerChrysler AG also splits with its Chinese JV partner Jiangsu YaXing Motor Coach Group. Daimler-Benz thus will have little obstacle to hold Foton Auto, a third Chinese automaker.

Yaxing-Benz was founded in May, 1997 by Daimler-Benz and Jiangsu Yaxing, each holding 50 % of the joint venture. The total investment tops US $ 95.5 million. The company's name has been changed back to Yangzhou Yaxing now. Though Daimler draws back its investment, the cooperation, especially on the technology field, between the two won't cease. Moreover, Daimler plans to build an auto parts base and continue to supply relative auto parts to Yaxing.

As restricted by the government's industry policy, foreign automakers could set up no more than two passenger vehicle or commercial vehicle JVs. So far by now, DCX has owned two commercial vehicle JVs in China, which are allied with Fujian Auto Group and Yangzhou Yaxing. By separating with the unprofitable Yangzhou Yaxing, Daimler will have the chance to enter Foton.

Forton, shortened for Beiqi Foton Motor Co., is a subsidiary of Beijing Industrial Holdings, and was founded in Aug. 1996. Foton's business units are seen in cities and provinces such as Beijing, Tianjin, Shandong, Hebei, Hunan, Hubei, Liaoning, and Guangdong. And its R&D branches are distributed in Japan, Germany, and Taiwan. Foton.