Beiqi Foton Motor Co., Ltd. and Daimler announced the reception of the business license for the joint venture Beijing Foton Daimler Automotive Co., Ltd., which will operate from the Foton Auman facility in Beijing’s Huairou district.

BFDA will enable Daimler’s commercial vehicle division to participate extensively in the Chinese market for medium- and heavy-duty trucks. The market’s volume has doubled over the last five years, and more than one million trucks are now being sold in this segment in China, the companies said.

“By founding BFDA, we have taken another step forward in the global growth strategy of Daimler Trucks, as well as the local expansion of our product portfolio in China,” stated Andreas Renschler, head of Daimler Trucks and Daimler Buses. “Our 50% stake in Beijing Foton Daimler Automotive will enable us to play a major role in the Chinese truck market and give us access to the attractive volume segment.”

A ceremony marking the official launch of the venture was followed by the constituent meeting of BFDA’s board of directors, chaired by Renschler and Wang Jinyu, president of Beiqi Foton. The BOD appointed BFDA’s board of management, with Wu Yuejun from Foton as president and Stefan Albrecht from Daimler as executive vice president.

During the meeting, the two sides finalized the agreed-upon contracts with BFDA and established the organizational structure of the joint venture, the company guidelines and the next steps for future development. As part of the venture, Daimler will set up the production facility for the OM 457 engine at BFDA’s headquarters. The engine, which is being used in Mercedes-Benz commercial vehicles in Europe and Latin America, will meet the future China IV emissions standard (corresponds to Euro 4), the company said.

Foton contributes its existing Auman medium- and heavy-duty truck business, including the production sites and the sales and service network. The joint venture will also be able to draw on Foton’s market know-how in China and the rest of Asia to facilitate faster business development across the entire region.

BFDA’s first jointly developed truck is scheduled to roll off the production line in the third quarter of this year.