Daimler Plans To Manufacture Mercedes-Benz Trucks In China
Published On Aug 23, 2019
According to a report observed by Reuters and other sources, German automaker Daimler AG has plans to manufacture heavy trucks with a brand nameplate of Mercedes-Benz by reconstructing truck mills owned by its local mutual enterprise in China. One of the sources declared "Localisation of Mercedes Benz-branded trucks had been planned years before, so it has nothing to do with BAIC Group's recent stake purchase in Daimler."
This plan is expected to strengthen the partnership between Daimler and Beiqi Foton Co Ltd (Chinese truck JV partner of Daimler). Moreover, it hits after the acquisition of a 5% stake in Daimler previous month by Beijing Automotive Group Co Ltd (Mercedes Benz passenger car partner), Foton's parent group. Daimer’s head of its truck business stated in 2016 that by the end of the decade, it plans to assemble Mercedes Benz-branded Actros big trucks in China. However, no details of the plan mentioned above have been announced yet.
A source said that Beijing Foton Daimler Automotive would attach Actros to its production lines that are mostly employed to build Auman trucks, which is the joint venture's single truck label. According to a report on the JV's website, JV plans to renovate its No.3 plant, and this plant is expected to hold an annual capacity of 60,000 heavy trucks. In addition to that, they have plans to expand the No.2 plant from 60,000 units to 100,000 now. However, the total value of the investment was not mentioned.
Another source said, "One of the biggest challenges is to build up a good local supply chain, as many heavy truck components for Mercedes-Benz trucks cannot be locally sourced for now." The Mercedes-Benz trucks currently marketed in China are shipped and rated significantly higher as compared to domestically manufactured Auman trucks.