Germany’s Daimler AG and its China commercial vehicle partner Beiqi Foton Motor will spend 3.8 billion yuan ($580 million) for making Mercedes Benz-branded heavy-duty trucks in Beijing, the companies said on Wednesday.
Kelley Platt, the joint venture’s CEO, has announced at a company event. Zhang Xiyong, general manager at BAIC Group, parent of Foton, announced the amount regarding the investment. The companies also said that production will start in two years.
Beijing Foton Daimler is a 50-50 joint venture company created for manufacturing commercial vehicles between Beiqi Foton Motor and Daimler and they aim to produce mid to heavy-duty trucks of the Auman brand and Benz OM457 engines.