Germany's Daimler AG is looking to build Mercedes Benz-branded heavy trucks in China through its local joint venture with Beiqi Foton Motor Co. Ltd., Reuters reported Aug. 21, citing an internal document and two sources familiar with the matter.
Daimler plans to revamp the plants of the heavy trucks JV, Beijing Foton Daimler Automotive Co. Ltd., to add Actros to existing production lines used to make the JV's sole truck brand, the Auman trucks, according to the news outlet.
Under the plan, the JV will boost the production capacity at one of the plants to 60,000 heavy trucks per year, while the second plant is expected to raise annual production to 100,000 units from the current 60,000, Reuters said, citing the document.
The report comes about a month after Beiqi Foton's parent, BAIC Motor Corp. Ltd., acquired a 5% stake in Daimler.
One of the sources told Reuters that the planned localization of the Mercedes Benz-branded trucks "had been planned years before, so it has nothing to do with BAIC Group's recent stake purchase in Daimler."
Daimler's China office did not immediately respond to phone calls seeking comment, while Foton declined to comment, Reuters said.
