Mitsubishi Fuso and Kamaz Establish
|||“FUSO KAMAZ Trucks Rus” set up for the import, production, and sale of Mitsubishi Fuso trucks in Russia|
|||Production and sale of Mitsubishi Fuso Canter trucks to commence in the first quarter of 2010|
|||For Mitsubishi Fuso: ’Key step in positioning company to serve future growth markets’|
Moscow and Kawasaki – Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Kamaz Inc. today announced they have finalized their joint venture for the Russia truck market. The companies today completed the agreement to establish the joint venture “FUSO KAMAZ Trucks Rus,” responsible for the import, production, and sale of Fuso trucks in Russia. The deal is subject to approval by appropriate government authorities.
The joint venture is 50% owned by MFTBC’s primary shareholder Daimler and 50% owned by Kamaz, with each party contributing €4.1 million in initial equity as a first step. Kamaz will nominate the joint venture’s CEO and the Head of Sales & Marketing, while MFTBC will nominate the CFO and the Head of Operations. Officers of the company will be announced later.
FUSO KAMAZ Trucks Rus will commence importing SKD kits, producing and selling the light-duty Fuso Canter trucks in the first quarter of 2010 following receipt of final approval by all relevant authorities. As the Russia truck market recovers, sales volumes are expected to rise to several thousand units annually in the coming years. The trucks assembled in Russia will steadily increase their local content of parts and components.
The Fuso Canter trucks will be manufactured in Naberezhnye Chelny, where Kamaz has its production plant, and the new company’s sales headquarters will be in regional capital of Kazan. With already around 11,000 used Fuso trucks on the Russian roads, the Fuso brand is already well known to the Russian customers, thus providing a strong basis to start new vehicle sales.
Dr. Albert Kirchmann, President and CEO of MFTBC, stated: “For Mitsubishi Fuso, this Russia joint venture represents a key step in positioning our company to serve future growth markets. The agreement with Kamaz opens up the high potential Russian market where we will be proud to serve new customers together with Kamaz. Kamaz’ market strength and comprehensive sales network provide us with a promising starting position for a successful market entry.”
Mr. Sergey A. Kogoghin, Director General of KAMAZ Inc., said: “The development of the strategic partnership between Daimler Trucks and Kamaz is becoming increasingly important and is designed to ensure that the two partners will enjoy a long-term relationship. All the joint venture partners are sharing their expertise in the areas of technology and sales, generating new opportunities for Fuso and Mercedes-Benz Trucks on the Russian market. In addition, modern technologies are being introduced in Russia as a result of the two collaborations.”Part of Growth and Market Penetration of Daimler Trucks “Global Excellence” Program
The basis of the joint venture initiative is the strategic partnership that Daimler Trucks established with Kamaz, Russian Technologies, and the investment bank Troika Dialog in December 2008. In connection with this partnership, Daimler Trucks acquired a 10 percent stake in Kamaz.
For Daimler Trucks, the establishment of the Russia joint venture is a key strategic step in the continued implementation of its Global Excellence Program. Launched in 2005, the Daimler Trucks’ Global Excellence Program includes a Growth and Market Penetration initiative aimed at enabling its brands to enter new markets with high growth opportunities in order to strengthen the division’s global presence.In addition to MFTBC’s planned joint venture, another Daimler Trucks business unit - Mercedes-Benz Trucks - has established a joint venture with Kamaz. This joint venture is responsible for the production of Mercedes-Benz trucks in Russia together with Kamaz and the organization of sales and marketing activities for Mercedes-Benz trucks, Mercedes-Benz buses and Setra buses.
Based in Kawasaki, Japan, Mitsubishi Fuso Truck and Bus Corporation (MFTBC) is one of Asia's leading commercial vehicle manufacturers. In 2008, the company sold a total of about 197,700 vehicles including light-, medium- and heavy-duty trucks and buses. Daimler AG owns 85% of MFTBC shares and 15% of shares are held by various Mitsubishi group companies. MFTBC is an integral part of the Daimler Trucks Division of Daimler AG.
KAMAZ Group of Companies is the largest automobile corporation of the Russian Federation. KAMAZ Inc. ranks 11th among the leading world heavy truck manufacturers and takes 8th place in the world by production volumes of diesel engines.