Foton Motor and Daimler Collaborate to Deploy Commercial Vehicle Market

Foton Motor and Daimler signed a letter of intent for cooperation. The two sides agreed to set up a 50:50 joint venture company in China, Daimler will use cash as its capital contribution, and Futian will all its Auman-related medium and heavy truck business after the evaluation of the Chinese joint venture capital contribution. It is reported that the Chinese joint venture company is the operation center for the global cooperation between the two parties and is also the center for the management decision, R&D, production, supply chain management, and marketing management of the global cooperation.

Foton Motors and Daimler's China Heavy Truck Joint Venture Co., Ltd. will produce Futian Auman heavy truck products and Daimler license emissions and power to OM457 heavy-duty engines with Euro V and 460 hp, respectively, and Futian products in the joint venture will continue The company uses Futian Auman's own brand for distribution, and is equipped with medium- and heavy-duty trucks such as Daimler's MB OM457 engine. In addition to the Futian Auman brand, it will also be labeled "Mercedes-Benz Power."

It is easy to see that in this cooperation, there is a basic principle that the Daimler branded medium- and heavy-duty trucks will be mainly used as high-end medium-heavy trucks and will be positioned in the primary and secondary niche markets. The Fuman's Auman brand The products will be positioned in the secondary mass market and the first-tier niche market as mid- to low-end medium- and heavy-duty trucks. Since then, Foton and Daimler have formed a joint effort to increase and enhance the competition between the two sides in China's mid-to-low-end medium and heavy truck market. This will enable both parties to expand their share of the global market through cooperation with each other and enhance their profitability in such markets.

The sales data of Foton Motor in the past two years shows that Foton Motor has made new breakthroughs from strategic growth to capacity growth. Although Foton Motor's performance this year has exceeded the industry's growth rate by 18.8% year-on-year, and even reached about 50% growth in March, according to the vision of Foton Motor, 2010 will achieve an annual sales of 80-100 million vehicles. Among them, overseas market sales will account for 20% of the market. According to expert analysis, Foton Motors will increase its sales volume from 500,000 units to 1 million units within two years. Without a new growth point, its sales performance will be greatly challenged.

However, a series of cooperation of Foton Motor has significantly increased its technical and management capabilities and opened the prelude to its ability to grow. This cooperation with Daimler in the medium-to-heavy truck field will depend on Daimler's technology and brand advantages and Auman's core competitiveness in network and communications. This will inevitably capture the position of the domestic heavy truck leader, and the sales of heavy trucks will reach 150,000 units. Probably; With the help of Cummins, Foton’s mid- to high-end light trucks Omar and Ao Ling are on a further step to defeat their rivals. Breaking through 250,000 vehicles in 2010 should not be a problem. As for the era of light trucks under the premise of improving overall technology of Foton It is not a difficult task to rely on its reputation to complete the sales of 400,000 vehicles a year.

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