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Daimler to produce heavy trucks with Foton in China

December 05, 2020


Abstract : Daimler Truck will launch the production of heavy commercial vehicles through a joint venture with its partner Beiqi Foton Motor in China.

MILAN, Dec 2 (Class Editori) – Daimler Truck will launch the production of heavy commercial vehicles through a joint venture with its partner Beiqi Foton Motor in China.

The two companies will produce trucks for the Chinese market through their joint venture, the Beijing Foton Daimler Automotive, which will be investing over €485 million ($581.8 million) in order to buy a plant and implement new infrastructures and production lines.

"China, the largest market of trucks, is extremely important to us and it has started to play a key role for our future growth", as the CEO of Daimler Truck- Martin Daum- has stated.

The commercial relations, increasingly strong between the Chinese and German companies of the automotive sector, has long been reason of conflict between Germany and the US administration.

In mid-November, the group has entrusted Geely with the production of hybrid engines. The Chinese company, which is a 10-percent shareholder of the German manufacturer, will build the new generation engines of Mercedes vehicles; these projects, however, will be developed in Germany. According to sources from the Handelsblatt newspaper, the agreement will allow Daimler to obtain a three-digit saving per year, thanks to the lower labour costs. Resources that the group chaired by Ola Kallenius will likely invest in the development of electric cars.

By confirming the news, Daimler has indeed explained that the production transfer to China will not cause the closure of factories in Germany, but those plants will be instead reconverted to electric engine production, in line with the regulators' and consumers' requests. Moreover, the production of gasoline-powered engines, as well as the research and development of Daimler, will continue to be based in Germany.

(Source:Class Editori)

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Keyword: Italian company heavy trucks

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