Daimler, Kamaz Form Truck Partnership

BERLIN (AP) -- Daimler AG said Thursday that it plans to form a joint venture with Russia's OAO Kamaz to make and sell Mercedes-Benz trucks, a move that deepens the two companies' existing cooperation.

Daimler's Mercedes-Benz Trucks and Kamaz signed a letter of intent Thursday on the planned venture, which would produce trucks in Russia and also sell Mercedes-Benz and Setra trucks and buses in the country. It did not give further details.

In July, Kamaz signed a similar agreement with Daimler's Mitsubishi Fuso Truck and Bus Corporation. Daimler said negotiations on forming that joint venture should be completed by late October.

Stuttgart-based Daimler acquired a 10 percent stake in Kamaz under a deal signed last December. It has been eager to enter the Russian truck market, citing its potential for strong growth.

More in Supply Chain