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17-01-2007 Daimler
Chrysler Motor Corporation will become a major shareholder in the Beijing-based
Beiqi Foton Motor Company through a share-purchase contract worth 818 million
yuan (US$105 million).
Under the contract, Daimler Chrysler will buy
297 million shares in Foton, a 24-percent holding, at 2.75 yuan per share, said
a statement from Foton, a leading commercial vehicle manufacturer ( including
AUV Bus Branch Company), on Tuesday.
The two sides also signed an alliance
agreement to cooperate in heavy-duty truck manufacturing.
Daimler Chrysler
is speeding up its expansion in China. It has just joined Taiwan China Motor Corporation
and Fujian Motor Group in setting up a joint venture in southeast China's Fujian
Province.
The new company, Daimler Chrysler Light-Duty Motor Company,
involves a total investment of 200 million euros with Fujian Motor Corporation
holding 50 percent of the shares, Daimler Chrysler Motor AG 33.78 percent and
Taiwan China Motor Corporation 16.22 percent. It will have an annual production
capacity of 40,000 medium-sized and light-duty vehicles.
Daimler Chrysler
also reached an agreement in principle with Chery, a carmaker based in the eastern
Anhui Province, allowing Chery to produce vehicles under Chrysler Group brands.
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