The German automaker Daimler AG and the Chinese utility vehicle maker Beiqi Foton Motor Co on Thursday signed an agreement in Beijing to form a joint venture.
Half the company is to belong to both automakers, and it is to produce mid-sized and large trucks, Daimler said, dpa reported.
"Foton is the right partner, and this alliance represents an advantage for both our companies," said Ruediger Grube, a member of Daimler's board.
One of Foton's shareholders is Beijing Automotive Industry Holding, which produces Mercedes limousines with Daimler in Beijing.
Daimler also plans to produce transport vans beginning next year in a joint venture with Fujian Motor Industry Group.