OREANDA-NEWS. October 19, 2009. KAMAZ Inc. and Daimler Trucks, the subsidiary of commercial vehicles (Daimler AG), signed a letter of intent to establish a joint venture Mercedes-Benz Trucks Vostok for production and realization of Mercedes-Benz trucks on the Russian market.

The protocol stipulates equal shares of the German and Russian capital in the joint venture.

The JV is established on the basis of an agreement on strategic partnership which was signed in December 2008 by the management of Daimler AG, Troyka Dialog Group of Companies, Rostekhnologii State Corporation (Russian Technologies) and KAMAZ Inc. in accordance with it, the German Concern acquired 10% of holding of shares of KAMAZ Inc.

Since the moment this agreement was signed, the parties have explored the possibilities to execute 17 joint projects with the participation of Daimler Trucks and KAMAZ. An agreement was achieved to start realizing some of them. For example, the decision was made to combine certain purchase amounts of Daimler AG and KAMAZ Inc. in order to get more profitable conditions from suppliers for the both companies. Besides, the parties have agreed to implement the management know-how of Daimler at KAMAZ. The enterprise management system Truck Operating Systems is a part of the program Global Excellence and it is implemented at the concern’s plants all over the world. This system optimizes the process of production management making it simultaneously more flexible and effective. KAMAZ managers and specialists will receive training in the fundamentals of Truck Operating Systems at the plant located in Mannheim (Germany), for the further implementation of these principles in the Production System of KAMAZ Inc.

In the course of cooperation the both parties will exchange their developments, production technologies and experience in the sphere of marketing. In due course, an additional sales network of Mercedes-Benz vehicles is supposed to be created on the basis of existing dealer and service enterprises of KAMAZ.

To add to this, Mitsubishi Fuso Truck and Bus Corporation, the leading producer of commercial vehicles in Asia with the 85%-participation of Daimler AG, and KAMAZ Inc. will have completed negotiations on creation of a joint venture on a parity basis by the end of October. The purpose of Fuso KAMAZ Trucks RUS joint venture will be sales of Fuso trucks on the Russian market. The production of vehicles will be organized at KAMAZ in Naberezhnye Chelny. The administration and the sales department of the JV will be located in Kazan. In the first place, Fuso Canter light trucks will be produced and sold in Russia.

In opinion of Hubertus Troska, Head of Mercedes-Benz Trucks Europe / Latin America, partnership with KAMAZ which has many years of experience and knowledge of peculiarities of the Russian market, and establishment of the JV on this basis will give the German company strategic advantages. According to him, Mercedes-Benz Trucks Vostok is meant for a long-term cooperation of the both parties knowledge and experience of which will perfectly supplement and enrich each other.

Director General of KAMAZ Inc. Sergey Kogoghin considers that the strategic partnership with Daimler AG and its trucks department strengthens the positions of KAMAZ and gives it an opportunity to become competitive on the global market. It will enable KAMAZ to modernize its production due to its exclusive partner’s experience, technologies and know-how. Establishment of the JV promotes cooperation with the German Concern to the new level.

REFERENCE. Daimler AG is among the global leaders in production of “Premium” class motor cars and is the largest global manufacturer of heavy and medium trucks. In 2008 the sales volume of Daimler AG made up 2.1 billion vehicles, and the number of the staff reached 270 thousand people.