Production of heavy-duty tractor models equipped with the best technology and aimed at the upper market segment is planned after two years at a new truck plant in Huaiju to Beijing, according to the Daimler Truck statement.
The joint venture will invest more than 3.8 billion yuan ($580 million) to acquire the plant, as well as to build new infrastructure and production lines.
“China, the largest truck market in the world, is of utmost importance to us and has become one of our main places for future growth”, said Martin Daum, chairman of the board of directors of Daimler Truck AG, adding that this is a “right strategic move in the right market and in the right moment”.
Hubertus Troska, the board member responsible for China, pointed out that the truck market is undergoing transformation and the growing e-commerce and logistics industry offers great opportunities. “Today, not only are we taking a big step in Daimler's localization strategy, but we are also setting a prime example of Sino-German cooperation,” Troska commented when announcing the partnership with Foton.
Photon CEO Gun Yuecyun said the new project is an evolution and upgrade of their cooperation with Daimler and a proper strategic move for the further development of the two companies in the Chinese market.
According to Daimler estimates, more than half of its trucks sold globally in 2020 will be registered in China.
Daimler and Foton will make tractors for Chinese market
Daimler Truck AG, the commercial vehicle division of German automotive concern Daimler (Daimler), announced on Wednesday that along with its Chinese partner, Photon (Beiqi Foton Motor Co., Ltd.), they will manufacture and sell Mercedes Benz tractors in China, Radio China reported.tags:
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