Weichai Power announced yesterday in Hong Kong that it had signed a strategic cooperation framework agreement with Beiqi Foton for product and equity cooperation.
According to the agreement between the two parties, in the next five years, Futian promises that the supporting rate of Weichai products will not be lower than that of Weichai in 2007 for heavy-duty commercial vehicles (total mass of 14 tons and above). The rate has been increased year by year; at the same time, Foton products have been given priority for the new models of vehicles developed outside Futian's heavy-duty commercial vehicles. In addition, in addition to the foreign branded engine products that Futian has introduced and jointly produced, the company promises not to develop and produce heavy-duty vehicle diesel engines and gearbox products that compete with Weichai in the next five years.
In the agreement, Futian’s advantage is that Weichai will act as a strategic investor and take up the subscription of shares of Foton Motor’s private placement.
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