Feb. 23, 2012 (China Knowledge) - Germany-based Daimler AG, the world's second-largest maker of luxury cars, and Beiqi Foton Motor Co Ltd<600166
>, China's largest commercial vehicle producer, plan to inject US$1 billion or RMB 6.35 billion into a new truck-making venture in Beijing
, said the German firm's Spokesperson Anthea Wang.
The joint venture, which is named Beijing
Foton Daimler Automotive Co and headquartered in Beijing
's Huairou District, expects to have an annual output capacity of 160,000 trucks, principally the Auman-branded medium- and heavy-duty trucks.
Initial production will start in the third quarter of 2012.
Last year, China's sales volume of medium- and heavy-duty trucks accounted for 40% of the global sales of such kind. Andreas Renschler, head of Daimler's truck and buses unit, noted Foton is a major auto player in the Chinese truck market.
The cooperation with Foton is a major step for Daimler to expand its global market for the sales of medium- and low-end trucks, said analysts.