Daimler may sell Chinese trucks globally

GLOBAL CARMAKERS FIGHT OUT RECESSION

Daimler AG, the world’s biggest truckmaker, may sell Chinese brand models internationally because of rising demand for low-cost commercial vehicles in emerging markets.

The company and Beiqi Foton Motor Co, China’s biggest commercial-vehicle maker, have also agreed to set up a venture in Beijing that will build Mercedes-Benz trucks, Daimler said in an e-mailed statement today.

The German company may offer Foton’s Auman brand trucks overseas, it said.

Daimler may join Nissan Motor Co in selling Chinese brand vehicles in markets such as Africa and the West Asia, as this saves on design and labor costs, while also allowing the automaker to offer fewer options than on its main brand vehicles.

The Chinese partner benefits by being able to sell vehicles overseas through an established dealership network.

“The deal will help Foton get access to more countries,’’ said Yu Bing, an analyst with Pingan Securities Co. in Shanghai. “The venture will also boost Daimler’s presence in China.’’ The Beijing venture will make Mercedes-Benz medium and heavy-duty trucks as well as Mercedes-Benz engines, Daimler said.

The Stuttgart-based company already has a venture with Foton’s parent, Beijing Automotive Industry Holdings Corp., which makes Mercedes-Benz sedans in the Chinese capital.

Beiqi Foton rose 2.3 per cent, the most in two weeks, to 7.05 yuan at the close of trading in Shanghai.

Honda Motor Co. and General Motors Corp. also sell China- made vehicles overseas as the country’s low wages make production cheaper than in other markets. China’s auto exports rose 59 percent in the first half from a year earlier, according to the customs bureau.

Daimler will also begin making Mercedes-Benz vans at Fujian Daimler Automotive next year, it said in the release.