DaimlerChrysler Expands in China With Heavy Trucks
Will this give a hard time to all the chinese truck manufacturers in china?
BEIJING — DaimlerChrysler is expanding its relationship with Beijing Auto as a springboard into the medium- and heavy-truck market in China.
The German automaker said it has received approval from the central government here to take a 24 percent stake in BAIC subsidiary Beiqi Foton Motor, which makes trucks and SUVs primarily for the Chinese market. DaimlerChrysler reportedly will supply Foton with modern commercial vehicles to sell in China, including trucks and vans.
The deal is worth an estimated $100 million.
BAIC's relations with DaimlerChrysler stretch back to the early 1980s, when American Motors formed a partnership with Beijing Jeep to build the Cherokee — the first such deal for a U.S. automaker. AMC was absorbed in 1986 into Chrysler, which in turn was acquired by Daimler.
Currently, BAIC also assembles versions of the Mercedes-Benz C- and E-Class sedans. Mercedes vans are assembled by two other Chinese makers, Yaxing Benz and Fujian Auto.