DaimlerChrysler eyes China trucks deal by year end
Jul 26, 2002 12:00 PM
DaimlerChrysler said it aimed to agree on a long-awaited joint venture with China's First Automotive Works by the end of the year, a move aimed at tapping China's potentially lucrative truck market. "We want to get this thing going and are hoping for closure this year," said a spokesman for the German automaker. DaimlerChrysler, the world's biggest truckmaker, has been in talks with FAW about jointly building heavy trucks for well over a year and some analysts had questioned whether negotiations had faltered. The German group, grappling with difficulties elsewhere in its operations, has identified China, Korea and Japan as major growth areas for commercial vehicles. Most experts say having a local partner is the most effective way of establishing a foothold in those markets. DaimlerChrysler already has a partnership with Hyundai Motor Co and is currently considering the best way to organise its truck operations with the Fuso trucks division of Japan's Mitsubishi Motors Corp.
