Foton announces tieup with Daimler

THE BEIJING Foton Daimler Auto pavilion. PHOTO BY ALVIN UY

With China becoming the world’s most important automotive market, all eyes were on the recently concluded 12th Beijing International Automotive Exhibition, also known as Auto China 2012.

Located at Beijing’s China International Exhibition Center, it showcased 1,125 vehicles with 120 World Premieres and had over 230,000 square meters of exhibition space. This includes 74 concept cars and 88 alternative-energy vehicle exhibits. In this year’s exhibit, Foton Motors focused on its recent tie-up with Daimler and its line-up of Auman trucks that will be produced soon by its joint venture with Foton under Beijing Foton Daimler Auto(BFDA).

“Daimler is showcasing our entire line of products with an exciting array of exhibitions and press conferences highlighting how we are bringing innovation to China and developing new technology in this country right here, right now,” said Ulrich Walker, chairman and CEO of Daimler Northeast Asia Ltd.

FOTON’S Auman trucks will soon be powered by Daimler's Mercedes-Benz engines. PHOTO BY ALVIN UY

Its German parent company Daimler AG was formerly known as DaimlerChrysler before it divested itself from the popular American car brand and is the world’s second-largest truck manufacturer in the world. Currently, it owns and produces Mercedes-Benz, Smart, Freightliner and Maybach car and truck brands, among others. The company also holds substantial stakes in Mitsubishi Fuso Truck and Bus Corp. and aerospace company EADS. It also owns the Vodafone McLaren Mercedes Formula One racing team.

“BFDA combines the best of both worlds. Foton brings with it the successful Auman business, which includes its development, production and sales network. Besides our financial contribution, Daimler supplies the state-of-the-art OM457 Mercedes-Benz motor, which will also be produced locally,” said Sefan Albrecht, executive vice president of BFDA. With a distribution and service network of over 2,700 dealers and 4,400 service centers nationwide and more than 100 distributors and 400 service centers internationally in over 100 countries, Foton is

THE NEWLY LAUNCHED Foton Tunland Pickup. PHOTO BY ALVIN UY

China’s biggest vehicle brand. Founded in August 1996 as the Beiqi Foton Motor Co. Ltd., it later became Foton Motor and was listed in 1998 in the stock exchange. By 2002, it began production of its first heavy truck under the Auman brand. Foton is now China’s biggest auto and truck manufacturer is now ranked 34th in the Chinese Top 500 Most Valuable Brands with an estimated brand value of RMB 34 billion.

Its expansion plans include setting up of more manufacturing hubs in Russia, India, Brazil, Mexico and Indonesia, as part of its 2020 Strategy. Just last year, production officially began on June 21, 2011, on its newest Beijing multi-purpose vehicle plant that is mainly dedicated for the production of its MPV, pickup, SUV and CUV lines. With a total production capacity up to 200,000 vehicles per year, it is also capable of producing 400,000 gasoline direct injection turbocharged engines as well as 10,000 heavy machinery engines annually. With growing concerns about environmental compliances, these engines will be Euro-V compliant and some with upgrade potential for Euro-VI emission standard.

The Beijing multi-purpose vehicle plant integrates the production lines for body stamping, coating and final assembly. It is mainly dedicated for the production of its pickup, SUV, CUV and MPV vehicle line-ups with a production capacity of about 360,000 vehicles per year. Sales revenue for this

A BRAND new tieup celebrated in bold letters. PHOTO BY ALVIN UY

plant alone is estimated to be in the tune of 30 billion RMB. The Tunland (locally known as the Tornado pickup model) is the latest pickup brand for Foton, and will also be produced in this plant. Known as the Tornado pickup locally, it was launched at the 2012 Manila International Auto Show last April.

On the local market, Foton Philippines is already setting up an assembly plant at Clarkfield, Pampanga, to cater to its growing market in the country.

“With regards to Clark, our target date of completion is 2013. Our initial plan is to assemble Tornado models. We currently have 18 dealers and we plan to enter emerging cities soon,” said Rommel Sytin, president of Foton Philippines, when asked about their expansion plans in the near future.

With 18 dealerships in nationwide, it is by far the largest Chinese auto brand in the market today. Aside from individual owners, it caters to government, institutional and corporate fleet accounts for its commercial vehicles, vans and pickup trucks, including specialty vehicles like police and ambulance units.