Daimler gets approval for truck JV with China's Foton

SHANGHAI: Daimler AG said it has received Chinese government approval to set up a 50-50 truck venture with Beiqi Foton Motor Co.

The venture will make medium to heavy duty trucks under Foton's Auman brand with technological support from Daimler, the German automaker said in a statement on Friday. Global truck giants, such as MAN, are increasingly turning to China where demand for heavy vehicles is strong because of an infrastructure construction boom, fuelled by Beijing's 4 trillion yuan ($585 billion) economic stimulus package.

Daimler also makes Mercedes-Benz sedans in a tie-up with Foton's parent, Beijing Automotive Industry Holding Co.