China Information

Monday, December 18, 2006

Daimler-Chrysler to Expand Business in China

According to German Business News, Daimler-Chrysler will purchase 24% shares of Beiqi Foton Motors with EUR79m (USD104m) to become the second biggest shareholder of Foton Motors after its parent company Beijing Automobile. This action is significant in occupying the Chinese market and driving the Chinese truck market to prosperity. The spokesman of Daimler-Chrysler expressed that they had negotiated and consulted with Foton for a long period on providing medium and heavy trucks to the Chinese market. Observers analyzed that Daimler-Chrysler would give up cooperation with Jiangsu Yaxing and turn to Foton. According to German economic and enterprise communities, there is a good prospect in the Chinese truck market with estimated sales increased by at least 10% similar to that of GDP, as economic growth is strong and investment on road is constantly expanded. However, occupying the market of China is not easy. Daimler-Chrysler must join itself in the mode of low price competition in the Chinese market for taking a steady stand.

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