Daimler Trucks said Monday it has received final authority from Chinese authorities for a joint-venture with Chinese truck maker Beiqi Foton Motor Co.
The venture, ‘Beijing Foton Daimler Automotive Co., Ltd.,’ which will build low cost medium- and heavy-duty trucks for China and for export, received final approval from the Chinese Ministry of Commerce “to thoroughly participate in the growth of the Chinese truck market,” Daimler said in a statement.
Daimler and Beiqi Foton signed an agreement last year to boost truck sales in China.
Last year, the Chinese market for trucks greater than six tons totaled 1.2 million units, and forecasts show that about 1.5 million such trucks will be sold annually in that country through 2020, Daimler said.
Beiqi Foton said earlier this month it was planning a heavy-duty truck for global export, according to the China Daily newspaper.
Foton has experienced rapid growth since entering the truck business in 1998. Last year it sold nearly 105,000 units of medium- and heavy-duty trucks, while it sold nearly 66,500 units during the first half of 2011
A second truck plant is already being ramped up, giving the Beijing Foton Daimler Automotive joint venture a total production capacity of 160,000 trucks, Daimler.
