Daimler, Foton may sign JV deal on Aug. 8

Shanghai, August 6 (Gasgoo.com) Daimler AG and Beiqi Foton Motor Co will end up their five-year marathon negotiations by setting up a joint venture in the near future, reported 21st Century Business Herald.

The deal may be signed around August 8, sources said. August 8, the opening date of 2008 Beijing Olympic Games, is pretty significant for the two automakers to sign their agreement.

The Beijing-based 50-50 venture will make Mercedes-Benz trucks, Foton vehicles and Mercedes-Benz engines. The two companies will also share both sales networks, as Mercedes-Benz trucks may sell in China by Foton’s sales network, while Foton trucks may sell abroad through Daimler’s global sales network.

A new breakthrough has been achieved in the Daimler-Foton’s cooperation, which will benefit China’s automobile industry on its globalization road, said Wang Dazong, Beiqi Foton Motor general manager in a recent interview.

The meaning is great that Beiqi Foton will sell Foton brand products by Daimler’s global sales network.