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Daimler AG, Foton to form heavy truck joint venture
Shanghai. December 7 (Gasgoo.com) – Chinese trucker maker Beiqi Foton Motor has signed a memorandum of understanding of setting up a joint venture with German automaker Daimler AG.
The joint venture is formed to make medium and heavy-duty trucks after an 817 million yuan share placement proposal was denied by China's regulatory authorities.
"The transaction was not approved by the government because significant changes have taken place in China's economy environment and the stock market since the contract was signed," Beiqi Foton said in an official statement.
Last November, DaimlerChrysler agreed to pay 816.8 million yuan (US$110.4 million) to take a 24-percent stake in Foton in order to bypass a Chinese automotive policy saying that foreigner automaker shall not have more than two joint ventures in either passenger vehicle segment or commercial vehicle segment.
Last November, DaimlerChrysler agreed to pay 816.8 million yuan (US$110.4 million) to take a 24-percent stake in Foton in order to bypass a Chinese automotive policy saying that foreigner automaker shall not have more than two joint ventures in either passenger vehicle segment or commercial vehicle segment.
Before Foton’s recent alliance with Daimler AG, most other Chinese heavy truck makers have already established partnership relations with other foreign automakers: Shaannxi Heavy Truck allied with German truck maker MAN; Sinotruck has partnership with Volvo and Chongqing Hongyan established joint venture with Iveco.
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