Foton says agrees on truck JV with Daimler

Daimler AG has reached a preliminary agreement to set up a truck-making joint venture with Beiqi Foton Motor Co in China, the Chinese company said on Wednesday.

Preparations for setting up the venture, which would make medium- to heavy-duty trucks, are proceeding smoothly, Foton said in a statement.

It did not disclose any financial details or the potential size of the venture.

The companies are also exploring opportunities to form a global partnership, the statement added.

In December, Foton scrapped an 817 million yuan ($117 million) share placement plan with DaimlerChrysler, which would have given its potential partner a 24 percent stake.

Instead, it said it would explore opportunities with Daimler in the medium- to heavy-duty truck sector, including a possible joint venture.

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