FRANKFURT — German car and truck maker Daimler is strengthening its partnership with KamAZ after the two companies agreed to cooperate on axles for commercial vehicles, the companies said Friday.
"The joint venture will supply axles to KamAZ as well as to the joint venture Mercedes-Benz Trucks Vostok," said Stefan Buchner, responsible for procurement and global powertrain operations at Daimler Trucks, in the statement.
The two parties plan to invest 50 million euros ($66.6 million) in axle production in Russia.
KamAZ will supply individual axle components to the Daimler axle plant in Kassel, Germany, where they will be further assembled. Daimler, which owns an 11 percent stake in KamAZ, is keen on the Russian truck market but has greatly tempered its initial ambitions by keeping its stake in KamAZ far lower than what Moscow would like.
When Troika Dialog looked to further reduce its exposure in KamAZ by selling another 5 percent to Daimler, the German group went so far as to shift 4 percent of that to the European Bank for Reconstruction and Development.
Daimler Trucks chief Andreas Renschler had earlier insisted his company was not in any hurry to expand its then 10 percent stake.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
