Daimler and Foton Motor have made significant progress regarding their negotiations to establish a 50:50 joint venture. Today, the joint venture contract was signed in the presence of German Chancellor Angela Merkel and the Premier of the People’s Republic of China Wen Jiabao. The approval for the deal was granted by the relevant Chinese government authority.

"The joint venture with Foton Motor represents another key milestone in implementing our China strategy. It further strengthens our position to address all segments of the market. And it shows that we deliver what we promise taking full advantage of the enormous potential in China and other growth countries." Dr. Dieter Zetsche, CEO of

Daimler AG comments the signing ceremony.

“The NDRC approval of the joint venture with Foton Motor in China is a key milestone in Daimler Truck’s overall strategy,” said Andreas Renschler, member of Daimler’s Board of Management and Head of Daimler Trucks and Daimler Buses. “The joint venture offers us an excellent springboard from which we can achieve growth, profitability and expansion in China, and with Foton as a global partner, in the international markets as well.”
CEO and Chairman of Daimler North East Asia, Ulrich Walker remarks, “With the newly established joint venture with Foton Motor, Daimler has now become the first and only international automotive manufacturer that had successfully deepened its cooperation with China in all segments of automotive industry”. He further elaborates that “all of these joint venture projects stemmed from Daimler’s thorough and long-term commitment to China".

“We are very pleased to have Daimler Trucks, the world’s largest truck manufacturer, as our strategic partner for BAIC’s Foton Motor subsidiary,” said Xu Heyi, Chairman of BAIC. “And we’re happy that our further and even more profound collaboration with Daimler, one of our most important strategic partners and as a good friend, has been sealed today by this joint venture.”

Wang Jingyu, CEO and President of Foton Motor. added, “we plan to use Daimler Trucks’ technological expertise in particular to further expand our commercial vehicle activities. The establishment of the new joint venture marks our first step towards global businesses and collaborations.”
Daimler will contribute its technological expertise to the joint venture - especially in the area of diesel engines and exhaust gas systems - so that the Chinese emissions limits ranging up to Euro 5 can be ful-filled. Both partners will use Foton’s truck brand Auman as a platform in China and as a springboard for joint exports. Alongside its sales and service network in the medium- and heavy-duty truck sector, Foton will contribute its market know-how in China and the rest of Asia to the joint venture. Foton has grown very quickly since its entry into the truck business in 1998. Last year it sold 82,234 heavy-duty truck units and thus already plays a key role in China’s truck segment.

Foton Motor is a subsidiary of Beijing Automotive Industry Corporation (BAIC). The joint venture will expand Daimler’s industrialization in China to include trucks, in addition to passenger cars and vans.

Daimler sales organization Mercedes-Benz Russia SAO opened a new sales and service center in Moscow. A total of €35 million was invested in the new center, which was constructed in just 13 months. Conveniently located on the Moscow Ring highway, the center will offer new and used Mercedes-Benz and Fuso trucks. The site, which includes the training and logistics facilities of Mercedes-Benz Russia, has a total area of 13,000 square meters.

Andreas Renschler, who is responsible for Daimler Trucks and Daimler Buses at the Daimler Group, expressed his satisfaction with the construction of the new center. “The new Mercedes-Benz Center will allow us to provide our customers with a service level unlike anything they have seen before,” he said at the official opening of the new Mercedes-Benz sales and service center in Moscow. “Russia is an important growth market for Daimler Trucks. The strategic partnership with Kamaz and the targeted expansion of our presence in Russia will enable us to consolidate our market position and open up further growth opportunities.”

Last year, Daimler Trucks established two joint ventures with the Russian truck manufacturer Kamaz. The joint ventures manufacture and sell Fuso and Mercedes-Benz trucks, and are performing well.

The Fuso Canter truck has been rolling off the assembly line in Kamaz’s production facility in Naberezhnye Chelny, Russia, since April. Production of heavy-duty Mercedes-Benz trucks will also be launched this year in Naberezhnye Chelny, where they will initially be manufactured using SKD assembly. Sales of the Mercedes-Benz trucks commenced in January 2010 via the new company Mercedes-Benz Trucks Vostok.
In February 2010, Daimler Trucks announced that the European Bank for Reconstruction & Development (EBRD) and Daimler Trucks would be increasing their stake in Kamaz to 15 percent in order to further strengthen the strategic partnership between the two companies.

Daimler Trucks North America (DTNA) and Daimler Buses have once again received orders for low-emission vehicles. Thomas Built Buses, Daimler Trucks North America’s school bus manufacturer, has received an order for 130 compressed natural gas (CNG) school buses. That’s the biggest contract for natural gas buses in the company’s history. The buses were ordered by the Los Angeles Unified School District (LAUSD), and the vehicles are scheduled to be delivered in the fourth quarter of 2010.

The LAUSD transportation services division only accepts bids for buses operating on alternative fuels. The district currently operates the largest CNG bus fleet in California, with more than 300 natural gas buses. Thomas Built CNG’s produce emission levels that are close to zero. The buses have complied with the U.S. EPA 2010 emissions standards since 2007 and also meet the state’s tough California Air Resources Board (CARB) limits.

“We welcome this opportunity to demonstrate our commitment to environmental stewardship and enhanced passenger safety,” says Kelley Platt, President and CEO of Thomas Built Buses. “LAUSD underscores its commitment to sound environmental strategies with its selection of 130 additional school buses that incorporate clean-fuel technologies.”

Customer acceptance of buses with alternative drive systems is also demonstrated by the orders for Orion-brand hybrid and CNG buses. Daimler Buses North America has so far obtained more than 3,000 orders for Orion buses with hybrid systems, and it delivered 25 Orion VII CNG transit buses to four transit agencies in California last month.
Besides natural gas drives, DTNA is also using other alternative drive systems, including hybrid technology, in commercial vehicles. Last month, Daimler Trucks North America delivered four medium-duty Freightliner Business Class M2 106 Hybrid trucks to the city of Denver. These aerial bucket trucks will be used for forestry, traffic signal, and traffic sign repair.

In June, DTNA also announced the opening of the Local Hybrid Application Center at its Portland location. It will serve as a local competence center for the research and development of hybrid technology in North America and supplement Daimler Trucks’ Global Hybrid Center in Japan.

The new contracts are part of Daimler’s “Shaping Future Transportation” initiative for commercial vehicles. With this initiative, the company aims to use clean and efficient drive systems along with alternative fuels in order to realize the vision of zero-emission commercial vehicles that will satisfy tomorrow's transportation needs. The initiative involves the sparing use of resources and the reduction of emissions of every kind, while guaranteeing maximum traffic safety.

Daimler Buses North America has delivered three Setra TopClass S 417 touring coaches to the Canadian Navy in Ottawa. These S 417 are versions specially designed for the Canadian Navy and are to be used in the Ontario, Quebec and Prairie regions.

On the outside of the coaches vivid graphics depicting warships and Navy personnel at work act as an attention magnet. In the interior of the vehicles there are electronics kiosks and computer systems to provide information about employment opportunities in the Canadian Navy. This is the first time this customer takes delivery of an S 417 USA with access at the rear. Normally, vehicles for the North American market only have an access at the front of the vehicle.

The vehicles, with a length of 13.72 metres, are powered by a Series 60 Detroit Diesel six-cylinder in-line engine with an output of 339 kW (461 hp). These engines deliver a maximum torque of 2100 Nm at 1100 rpm.

“We hope to further consolidate our market position in North America through this top-class order,” says Lothar Holder, head of Setra coach sales at EvoBus GmbH.

The Supervisory Board and Board of Management of Daimler AG (stock - exchange symbol “ DAI ” ) have decided to apply for the discontinuation of the listing of its shares on the New York Stock Exchange (NYSE).

Bodo Uebber, CFO of Daimler AG, said: “Daimler continues to place great importance on having an international shareholder base. The trading center for our shares, however, clearly is Frankfurt – and that is also the case for our international investors. Furthermore, this step will enhance our overall efficiency. The American sales market and our activities in North America remain as important as ever for Daimler.”

Daimler informed the NYSE by letter today of its intention to discontinue the listing of its shares as well as the 8.50% notes due January 18, 2031 of Daimler Finance North America LLC and the related Daimler guarantee. Daimler will submit a request for delisting also to the United States Securities and Exchange Commission (SEC). After the delisting has become effective, Daimler will also apply to the SEC for deregistration of all its securities registered with the SEC and termination of its reporting obligations under the U.S. Securities Exchange Act of 1934.

The main reason for discontinuing the NYSE listing and registration with the SEC is a significant change in the behavior of international investors, who now primarily trade in Daimler shares in Germany and through electronic trading platforms. Daimler’s trading volumes in the United States on the contrary have been consistently low and , over a twelve month period, amounted to an average of well below 5% of the worldwide trading volume .

Another objective is to reduce the complexity of financial reporting as well as administrative expenses and fees. The delisting is also the final step in Daimler’s efforts to reduce its number of stock-exchange listings.
Daimler AG will apply for delisting and deregistration in the near future. Independently of the delisting and deregistration, Daimler will maintain a high degree of transparency in its financial reporting and will continue to fulfill the requirements of international investors. “We remain in direct, close and open dialogue with our American investors, and our investor relations team and I will continue to be present on a regular basis in the U.S.,” stated Mr. Uebber.

Daimler has a strong presence in North America and will continue to work to further strengthen its market share and business operations there. In 2009, the region accounted for 25 percent of the Daimler Group’s worldwide revenue and almost every tenth Daimler employee worked in North America.
Daimler reserves the right to submit the aforementioned applications at a later date or to not to submit them at all or to change its plans in other ways.

Daimler and Daimler Finance North America LLC have not arranged for the listing of the aforementioned securities on another U.S. securities exchange or for the quotation of such securities in a quotation medium in the United States.

The Renault-Nissan Alliance and Daimler AG today announced a broad strategic cooperation that will enable both groups to already realize benefits quickly from a range of concrete projects as well as sharing of best practices. The two groups also announced an equity exchange that will give the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a 3.1% in Renault and a 3.1% stake in Nissan.

According to Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, “Daimler and the Renault-Nissan Alliance are combining common interests to form a promising foundation for a successful, strategically sound cooperation that is based on a number of very concrete and attractive project cooperations. Our skills complement each other very well. Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint – both on a long-term basis. We know that we can make brand-typical products based on shared architectures. The individual brand identities will remain unaffected.”

Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance, said: “The Renault-Nissan Alliance knows how to work successfully in collaborative partnerships, and this experience is extremely valuable in today’s and even more tomorrow’s global auto industry. This agreement will extend our strategic collaboration and create lasting value for the Renault-Nissan Alliance and Daimler as we work on broadening and strengthening our product offering, efficiently utilizing all available resources and developing the innovative technologies required in the coming decade.”

Highlights of the Cooperation

Following intensive and productive talks, specific projects have been agreed upon and will be implemented with immediate effect. Specifically:

New common architecture for small vehicles

The successor to the current smart fortwo, a new smart four-seater and the next-generation Renault Twingo will be engineered on the basis of a jointly developed architecture. All vehicles will clearly differ from each other in terms of product design. One main characteristic of the new architecture will be the unique rear wheel drive concept used by current smart vehicles.

The launches of the jointly developed models are planned for 2013 onwards. The smart plant in Hambach, France will be the production location for the two-seater versions, while the Renault plant in Novo Mesto, Slovenia will be the production location for the four-seater versions. Right from its market launch, the jointly developed future models will also be available with an electric drive.

Powertrains

The focus of the cooperation in the powertrain area is on the sharing of highly fuel-efficient, diesel and gasoline engines between the Renault-Nissan Alliance and Daimler.

The Renault-Nissan Alliance will provide 3 and 4 cylinder gasoline and diesel engines out of its portfolio to Daimler, which will then be adapted and modified to reflect Mercedes’ characteristics. The result is a win-win situation for both sides: Daimler will be able to utilize Renault-Nissan Alliance engines and capture additional sales potential for Mercedes-Benz’ future lineup of premium compact cars, while the Renault-Nissan Alliance will improve its capacity utilization.
Daimler will provide gasoline and diesel engines out of its current portfolio to Infiniti. This includes 4 and 6 cylinder gasoline and diesel engines. The result is a win-win situation for both sides: Infiniti will be able to utilize Daimler engines, while Daimler will improve its capacity utilization.

Daimler, Renault and Nissan will also cooperate on future gasoline and diesel engines. Final production decisions for newly, co-developed engines will be taken at a later time, seeking a production network that is well balanced, thus benefiting all sides.

The area of engine cooperation will be driven by a technical concept that ensures the preservation and clear distinctiveness of the individual respective brand and product identities, while at the same time providing a highly competitive cost structure. First, a high level of standardization of the non-brand-relevant components will provide substantial savings for both partners. Second, the use of separate, brand-specific technology packages will ensure that the requirements of the respective brands are met.

A key objective is to increase competitiveness of all partners through a substantial increase in volumes, leading to economies of scale and cost sharing in development.

Collaboration on light commercial vehicles

The companies have also agreed on a close cooperation in the light commercial vehicle segment. Mercedes-Benz Vans will expand its portfolio to offer an all-new entry-level, intended for commercial usage, from 2012 onwards. The technical basis of this van will come from Renault and will be produced at the Renault plant in Maubeuge, France. Both partners will benefit from higher unit sales, better capacity utilization, shared investment burden, resulting in a better overall cost basis.
In addition to cooperating on small commercial vehicles, selected powertrain components will also be shared to enlarge mid-size van product offering and sales volumes. This includes a small diesel engine and transmissions which Daimler will procure from Renault-Nissan for its mid-size van, the Mercedes-Benz Vito. This additional entry-level motorization will generate additional unit sales for Mercedes-Benz and optimized capacity utilization at Renault.

Equity Exchanges

This strategic cooperation is underscored through a one-time cross-shareholding structure which enables the three companies to exchange, benchmark and create synergies on the basis of a long-term mutually beneficial relationship. The overall construction of the deal is based on the principle of a 3.1/3.1/3.1 percentage cross-holding between Renault, Nissan and Daimler; it will be transacted through an exchange of shares:

• Daimler will get 3.1% of Renault’s newly issued shares;
• Daimler will get from Renault 3.1% of Nissan existing shares;
• Renault will get 3.1% of Daimler shares
• Renault has independently agreed to exchange 1.55% of Daimler with Nissan for 2% of Nissan shares;
• Renault and Nissan will each hold 1.55 % of Daimler treasury shares.

The strategic cooperation will be managed by Renault-Nissan B.V. for the Alliance and Daimler through a new cooperation committee giving representation to all parties. The cooperation committee will be co-chaired by Carlos Ghosn and Dieter Zetsche and steered by senior executives of the three companies.

French carmaker Renault was expected to approve on Tuesday a new partnership with Germany's Daimler to exchange capital and to share know-how in building smaller cars.

France's number two carmaker convened a meeting of its board of directors in Paris to "decide on a new partnership with Daimler," French Industry Minister Christian Estrosi told a news conference.

Reports said Renault and Daimler, the manufacturer of the luxury Mercedes-Benz, have reached a deal to take three percent stakes in each other and work together to develop small cars and engines.

Japanese automaker Nissan, which is 44.3-percent owned by Renault, will also reportedly take part in the new tie-up and a formal announcement was expected on Wednesday.

A Renault spokesman declined to confirm the plan.

The global auto sector is struggling to overcome a slump caused by the economic downturn and is joining forces to share technology and reduce costs.

German industry experts think that, by cooperating with Renault, Daimler could make savings of 600 million euros (800 million dollars) in its development sector.

Estrosi said a senior official from the economy ministry, Luc Rousseau, was attending the meeting. The French state has a 15-percent stake in Renault.

"I can confirm that we approve of this partnership and that our representative will defend the state's industrial strategy," said Estrosi.

Renault shares were up 2.55 percent at 36.40 euros in lunchtime trading Tuesday in Paris on news of the partnership with Daimler. Daimler was up 0.27 percent at 35.50 euros in Frankfurt.

The deal would be a "win-win situation" for the two firms, said Philippe Barrier from Societe Generale Cross Asset Research.

It would allow Daimler to buy technology at good prices while Renault and Nissan could share the cost of research and development for bigger models with the German partner, said Barrier in a research note.

The agreement provides for exchanges of engines and technology, sharing car parts and production platforms for future Smart models, and developing electric cars, said Guillaume Angue, analyst with CM-CIC Securities.

Despite poor sales for its Smart brand of minicars, Daimler envisions a turnaround by sharing parts with automakers that have strength in small vehicles, Japan's Nikkei business daily reported.

Renault and Nissan are developing an extensive line of zero-emission electric vehicles, including Nissan's Leaf, while Daimler could contribute its robust diesel engines for luxury cars and trucks.

Renault, maker of the popular Clio mini-car, entered into an alliance with Nissan 11 years ago to share car parts and open up access to production sites worldwide.

Nissan for instance builds Renault Sandero hatchbacks at its plant in South Africa while Renault builds Nissan models in Brazil. The two carmakers have built a joint plant in India.

Renault, Nissan and Daimler had combined sales of 7.22 million vehicles in 2009, trailing the 8.6 million units for the alliance between Volkswagen and Japan's Suzuki and the 7.81 million vehicles sold by Toyota.

Volkswagen, the biggest European car maker, and Suzuki finalised a cross-shareholding operation last year.

German automaker Daimler pleaded guilty to US charges of bribery and agreed to pay 185 million dollars to settle the affair, the US government said Thursday.

The Justice Department said Daimler and three of its subsidiaries had resolved charges related to a Foreign Corrupt Practices Act (FCPA) investigation into the company's worldwide sales practices.

US District Court Judge Richard Leon approved the settlement at a hearing Thursday in Washington.

"Daimler AG's Russian subsidiary DaimlerChrysler Automotive Russia SAO (DCAR), now known as Mercedes-Benz Russia SAO, and its German subsidiary, Export and Trade Finance GmbH (ETF), each pleaded guilty to criminal informations charging the companies with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of violating those provisions," the Justice Department said in a statement.

As part of the plea agreements, DCAR and ETF agreed to pay criminal fines of 27.3 million dollars and 29.12 million dollars, respectively, part of the 93.6 million in criminal fines and penalties that Daimler and its subsidiaries paid in total, it said.

"These are significant and widespread violations," said prosecutor John Darden, speaking in federal court on behalf of the US government.

Darden noted that the sentence is clearly below federal sentencing guidelines.

"Daimler showed excellent cooperation," said Darden. "The company has undertaken an effort to clean its own house. That reflects a serious change of mind on part of Daimler. This deserves credit."

Judge Leon acknowledged that it was "a very complex case" as he accepted the plea agreement.

In a separate, related civil case, Daimler agreed to pay 91.4 million dollars to settle a case filed by markets regulator the US Securities and Exchange Commission.

Daimler had earlier admitted to making hundreds of improper payments worth tens of millions of dollars to foreign government officials in at least 22 countries between 1998 and 2008, according to a deferred prosecution agreement filed in a Washington court.

The kickbacks of cash and gifts of luxury armored cars, golf clubs and vacations helped secure government contracts worth millions of dollars in China, Russia, Thailand, Greece, Iraq and other countries.

Prosecutors recommended that the judge impose the 93.6-million-dollar fine and accept the guilty plea of two Daimler subsidiaries. They noted that Daimler had mended its ways and cooperated fully with the investigation.

Daimler regularly presented its findings to prosecutors, fired 45 employees implicated in the bribery and reformed its practices, prosecutors wrote.

The fines are significantly smaller than the 800 million dollars German industrial giant Siemens paid in 2008 to settle a US investigation into its bribery of officials to secure contracts in Argentina, Bangladesh, Iraq and Venezuela.

The bribery first came to light in 2004 when a former Daimler employee filed a whistleblower complaint saying he'd been fired for voicing concern about secret accounts maintained to pay the bribes.

The German automaker Daimler said late Monday it had agreed to develop an electric car for the Chinese market with the Chinese group Build Your Dreams (BYD).

"Under the agreement, Daimler and BYD intend to develop a new electric vehicle specific to the requirements of the Chinese market," a joint statement said.

A new brand would be created for the vehicle and the construction of a Chinese technology centre was included in the deal, it added.

Daimler is to bring its expertise in electric cars to the venture, while BYD would add its battery technology to the company.

"Electric vehicles are especially well-suited for urban driving. With its many metropolitan areas, China has the potential to be among the world?s largest markets for zero-emission vehicles," the statement quoted Daimler chairman Dieter Zetsche and BYD chairman Wang Chuanfu as saying.

Daimler is relatively new to the field of low-emissions vehicles, but the maker of Mercedes Benz is trying to catch up with the launch this year of electric versons of its Smart city car and small Class A series.

In late 2010, BYD plans to introduce its e6 electric vehicle in North America.

US billionaire Warren Buffett owns 10 percent of BYD.

German heavy truck maker Daimler said Tuesday it will eliminate 3,500 North American jobs owing to the worsening economic slowdown, a day after Japan's Nissan announced nearly 1,700 jobs were being axed.

Following announcements by Nissan, Renault, and Volvo in Europe, and restructuring by General Motors and Ford, utility vehicles are also unveiling hits from slumping sales.

In the United States, the market deteriorated "in a way we have not anticipated," Daimler Trucks boss Andreas Renschler told a telephone press conference.

He pointed to weaker demand, a "dramatic" increase in fuel and raw material prices earlier this year and effects of the international financial crisis.

The sector was undergoing fundamental changes, Renschler said, and "a near-term recovery is not on the horizon."

Daimler, the world's biggest maker of heavy trucks, decided to shut down its Sterling Trucks brand in March "in response to continuing depressed demand across the industry and structural changes in the company's core markets," a statement said.

The German group is a rare European actor in the North American heavy truck sector, with about 28 percent of the market and sales of 320,000 vehicles in 2007.

As a result however, it has suffered from the financial and economic crisis there, and has slashed its previous market forecast for 2008 sales of 435,000 heavy trucks down to 294,000.

"As the recession deepens, the heavy-truck market is hit harder," German auto expert Ferdinand Dudenhoeffer told AFP. "The sector will see a recession as well."

In addition, a Daimler spokeswoman told AFP, the sector is subject to regular cycles, and the German group had already expected diminished demand late this year and early in 2009.

"It is falling back more sharply now," she noted however.

Finally, new US regulations aimed at reducing pollution have also hurt sales, Daimler said.

The group will eliminate around one quarter of its workforce in North American heavy truck production, based on figures it provided.

Two plants are to be shut down, one in Ontario, Canada in March, and another in Portland, Oregon in June 2010, and production will move to Mexico.

With pressure to reduce production costs rising, Daimler would focus on "low-cost countries," Renschler said.

In addition to the loss of 2,300 jobs, another 1,200 administrative posts will also be eliminated, the Daimler statement said.

After unloading the Sterling Trucks brand, Daimler will concentrate on its Freightliner and Western Star models.

"Sterling and Freightliner occupy the same (market) segment. But Freightliner has stronger sales and is our top-of-the-line," the Daimler spokeswoman said.

The group estimates its restructuring will cost around 600 million euros (820 million dollars), but will generate annual savings of 900 million from 2011.

"Daimler is trying to limit its losses in the United States," Dudenhoeffer concluded, though he added that the market should "pick up again in 2010."

It is likely meanwhile to shift towards emerging economies in eastern Europe, India and China.

"There are almost no other means of transporting merchandise there," Dudenhoeffer said.

In general, he concluded, "logistics is clearly a growth industry, it is expanding twice as fast as the market for personal vehicles."