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With the rapid development of China’s economy, China’s demand for automobiles has soared. Last year it surpassed the United States as the world’s largest auto market. The Daimler Group has invested in the passenger and passenger car markets in China and has established its own joint venture companies. Now Daimler chose to enter the heavy truck market in China and set up a joint venture with Beiqi Foton to establish Beijing "Fukuda Daimler Automotive Co., Ltd." This will help it increase its position in the Chinese truck market.
Daimler Expands Heavy Truck Engine in China to Realize Domestic Production in 2014 Daimler recently announced that it will jointly invest RMB 1 billion in a new engine plant in Huairou, Beijing, in cooperation with Beiqi Foton, mainly for the production of OM457 diesel engines. The annual output will be It reached 45,000 units. The plant will start construction in the first half of 2013, and it will be officially put into production in 2014. Afterwards, it will mainly carry the Foton Auman truck produced by its joint venture Beiqi Foton Daimler.
The model OM457 is produced by Mercedes-Benz and is mainly used for heavy trucks. Most trucks in Europe and Latin America are equipped with OM457 engines with a power output of 490 horsepower. As to when this engine will be used to mass-produce Auman trucks, China Netcom and Daimler are responsible for communicating with the responsible person for the heavy truck cooperation project. The other said: “Future Auman Trucks will be partially equipped with imported OM457 engines. The engine is produced at the Mercedes Mannheim plant. After the domestic engine is put into production in 2014, Futian Auman will be equipped with a domestic engine."
Beiqi Foton/Daimler set up joint venture to jointly develop heavy trucks On February 18, 2012, Beiqi Foton and Daimler Group announced the establishment of a Beiqi Foton Daimler joint venture. The two parties will be established with a 50:50 shareholding ratio. The registered capital will be 5.6 billion yuan. The total investment of the two parties will be 6.53 billion yuan. The joint venture company will jointly manufacture Futian "Auman" heavy trucks. As to how the two parties would cooperate after the joint venture company, the reporter got in touch with the person in charge of Beiqi Foton Heavy Truck. The other party stated: “After the two parties form a joint venture, Dalem Group will provide technical and management support to Beiqi Foton, the future joint venture company. Joint R&D will also be conducted in some areas.
Daimler and Beiqi Foton have cooperated since 2003. In January 2011, they invested 2.6 billion yuan to establish the Futian Auman Heavy Truck Plant. This year, they ended their long-distance race and established a joint venture company. The first Futian Daimler Auman heavy truck after the establishment of the joint venture company was officially off the assembly line on July 9. After the engine plant is officially put into operation, it will be equipped with the domestically produced OM457 diesel engine.
It is believed that with the domestic production of this engine, the production capacity of Futian Auman vehicles will be further enhanced and the price of vehicles will be reduced, which is a good news for the Chinese truck market.
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