After nearly five years of long-distance running, Fukuda and Daimler finally held hands. Yesterday, Foton and Daimler jointly signed a letter of intent for global cooperation in Beijing. The two sides will form a joint venture company in heavy trucks, introduce Mercedes-Benz heavy truck technology, build Futian Auman heavy trucks, and introduce Mercedes-Benz heavy truck engines in Beijing.
According to the letter of intent for cooperation, the two parties agreed to set up a 50:50 joint venture company in China to introduce medium and heavy trucks and technologies. The new company will build Futian Auman heavy trucks and domestic Mercedes-Benz heavy truck engines. This is the first time that the world-renowned Mercedes-Benz engine has been domestically produced. The engine is an OM457 heavy-duty engine with emissions and power of Euro V and 460 horsepower (12 liters). The production site will be in the Auman heavy-duty truck factory on the eastern side of Qingchun Road in Huairou District, Beijing.
Yesterday, the two parties signed an agreement of intent in a hotel in Yizhuang, Beijing. The ceremony lasted for half an hour. According to the participants, Daimler agreed with Futian that it was a strategic cooperation rather than a market-for-technology cooperation. In other words, the Foton vehicle product in the joint venture company will use Futian Auman's own brand, this form of joint venture guarantees that the joint venture company will not give up its own brand. Not only that, the two sides also agreed that this joint venture company is the operating center of the global cooperation between the two sides, that is, in the low-end commercial vehicle market, both parties will jointly rely on Auman heavy trucks. Auman Heavy Trucks may also use Daimler's network to sell around the world.
According to sources inside Futian, the joint venture company will also set up a new R&D center, and Daimler experts will be stationed to improve the reliability and safety of Auman heavy trucks. Daimler development tools will also be introduced in the R&D center to develop new truck cabs. The cooperation plan between Daimler and Foton will be submitted to the relevant national authorities for approval in the near future. It is expected that the joint venture will be formally established several months later.
In 2003, BAIC and Daimler signed a 20-year cooperation plan. The two sides agreed that in addition to cars, they will also cooperate in the field of commercial vehicles. In 2004, Daimler and Beiqi jointly established Beijing Benz to produce Mercedes-Benz E and C-class sedans. After a joint venture with Foton, Daimler will have a passenger car joint venture and two commercial vehicle joint ventures in China. Among them, another joint venture Fujian Daimler produces light passenger vehicles that will be put into production in 2009.