DAIMLER AG will add 40,000 commercial vehicles annually in China when its new plant in Fuzhou, Fujian Province, is ready.
The world's largest commercial-vehicle maker has poured 208 million euros (US$296 million) in the new facility, which will make Mercedes-Benz Viano, Vito multi-purpose vehicle and Sprinter vans under the first phase, a company official said yesterday at a ceremony to mark its construction. Production is due to start in the middle of 2009.
Stuttgart-based Daimler holds 33 percent of the venture, Fujian Daimler Automotive Co will own 50 percent and Taiwan-based China Motor Corp has 17 percent.
Auto analysts said the move to invest in the plant marks a more aggressive strategy for Daimler in China as it localizes production of passenger cars and light commercial vehicles after its separation from Chrysler.
Market demand for commercial vehicles in China accelerated rapidly due to the nation's fast expanding economy which has spurred sales.
China's commercial vehicle sales rose 26 percent to 1.88 million in the first nine months of the year, including a 20-percent growth for MPVs to 165,30 units, said the China Association of Automobile Manufacturers.
The German auto maker opened its first factory in Beijing last September partnering Beijing Automotive Industry Holding Co, as part of company's US$1.9-billion investment in China.
The plant with an annual capacity of 105,000 units will turn out Mercedes-Benz E-class sedans as well as Chrysler 300C sedan.
Daimler also agreed to spend 816.8 million yuan (US$102.1 million) for a 24-percent stake in Beiqi Foton Motor Co, China's largest commercial-vehicle maker. The deal is awaiting government approval.