China's Beiqi Foton Motor truck JV talks with DaimlerChrysler suspended-
Beiqi Foton Motor Co's talks with DaimlerChrysler AG to set up a truck joint venture have been suspended because of regulatory hurdles
BEIJING XFN-ASIA) - Beiqi Foton Motor Co's talks with DaimlerChrysler AG to set up a truck joint venture have been suspended because of regulatory hurdles, the Wall Street Journal reported, citing a senior executive at the Chinese firm.
Robin Wu, chief design officer at Beiqi Foton, said in an interview that the US-German auto maker may still explore options with its existing Chinese partners to help the planned joint venture meet regulatory requirements.
The companies had agreed to set up a 50-50 venture to make DaimlerChrysler's Actros and Foton's Auman-branded trucks, Wu was quoted as saying in the report.
The partnership was part of a 1.21 bln usd deal signed in 2003 between DaimlerChrysler and Beijing Automotive Industry Holding Co., Beiqi Foton's parent, to expand on a 20-year alliance, the report said.
But China's current policy, which allows foreign auto makers to set up at most two passenger-car joint ventures and two commercial-vehicle joint ventures in China, has prevented the deal from going through, Wu said.
DaimlerChrysler has a commercial-vehicle venture, DaimlerChrysler Vans (China) Ltd., with Fujian Motor Industry Group and Taiwan-based China Motor Corp.
The venture, based in Fujian province, produces Mercedes-Benz Sprinter and Viano multipurpose vehicles.
In its other China venture, Yaxing Benz Ltd., DaimlerChrysler and Jiangsu Yaxing Motor & Coach Group each own a 50 pct stake.
'We are still waiting for government approval... Once we get a license for a marriage we will do it immediately,' Wu said.
However, an official from China's top economic planning agency said chances of granting a license to the third joint venture are minimal.
'China won't loosen the restriction, at least for now,' said Li Wanli, a division chief under the Department of Industrial Policy in the National Development and Reform Commission.
Robin Wu, chief design officer at Beiqi Foton, said in an interview that the US-German auto maker may still explore options with its existing Chinese partners to help the planned joint venture meet regulatory requirements.
The companies had agreed to set up a 50-50 venture to make DaimlerChrysler's Actros and Foton's Auman-branded trucks, Wu was quoted as saying in the report.
The partnership was part of a 1.21 bln usd deal signed in 2003 between DaimlerChrysler and Beijing Automotive Industry Holding Co., Beiqi Foton's parent, to expand on a 20-year alliance, the report said.
But China's current policy, which allows foreign auto makers to set up at most two passenger-car joint ventures and two commercial-vehicle joint ventures in China, has prevented the deal from going through, Wu said.
DaimlerChrysler has a commercial-vehicle venture, DaimlerChrysler Vans (China) Ltd., with Fujian Motor Industry Group and Taiwan-based China Motor Corp.
The venture, based in Fujian province, produces Mercedes-Benz Sprinter and Viano multipurpose vehicles.
In its other China venture, Yaxing Benz Ltd., DaimlerChrysler and Jiangsu Yaxing Motor & Coach Group each own a 50 pct stake.
'We are still waiting for government approval... Once we get a license for a marriage we will do it immediately,' Wu said.
However, an official from China's top economic planning agency said chances of granting a license to the third joint venture are minimal.
'China won't loosen the restriction, at least for now,' said Li Wanli, a division chief under the Department of Industrial Policy in the National Development and Reform Commission.
