Joint Venture Agreement for "Thailand 4.0" Automotive Industry Development
FOTON Motor and CP Group collaborate for a Joint Venture Agreement boosting the "Thailand 4.0" Automotive Industry Development. The 2nd Belt and Road Forum (BRF) for International Cooperation was set up in Beijing on April 25, 2019. Recognized as one of the highest-standard international cooperation stands under the context of China Belt and Road Initiative, BRF greeted more than 40 state heads, government authorities, and senior delegates of international organizations, nearly 5,000 overseas guests from more than 150 nations and more than 90 global organizations. The same day, a joint venture agreement was signed among Gong Yueqiong, President of FOTON Motor Group, and Nopadol Chiaravanont, Vice Chairman of Trade Business Group. The two parties will mutually establish a joint venture corporation in Thailand, which will set up an engineering company and a sales corporation to take rewards of both parties in commercial vehicle technology and market maneuver capabilities into the full piece in a determination to become the third major commercial vehicle brand in Thailand.
As the major business group in Thailand, CP Group was originated in 1921 and it’s headquartered is in Bangkok, Thailand. CP Group business opportunity covers agriculture, food, retail, animal husbandry, real estate, automobile industry telecommunications, finance, etc. The group has its operation in more than 20 countries with around 300,000 employees and an annual income of over 300 billion Yuan.
As an international automobile company with honors of leading China’s commercial vehicle industry for 14 successive years, FOTON Motor has a business scope casing a full series of commercial vehicles including middle-sized and heavy-duty trucks, vans, pickups, light-duty trucks, construction machinery vehicle, bus and coaches, etc. FOTON Motor has successfully been able to establish joint ventures with world-renowned corporations such as Daimler, Cummins, and ZF.
Based on optimistic expectations for the future potential growth of the Thai and ASIAN markets, the shared venture will set up a sales firm and a manufacturing firm respectively, aiming to be the third major commercial vehicle brand in Thailand.
The joint venture company will implement the FOTON Motor technology in commercial vehicles, new energy vehicles, and manufacturing technologies. FOTON Motor will permit the joint venture corporation to use FOTON Motor brand, logos, trademarks as well as technical assistance such as manufacturing. As a sequential plan, the two parties will invest in the formation of manufacturing plants based on market sales with an effort to work independently for the manufacturing of FOTON AUMARK, AUMAN, AUV coaches, and sustainable ideas like new energy vehicles to develop the ASIAN market.
In recent years, the foreign direct investment of Thailand has decreased by a margin resulting in an unnatural economic growth, failing to meet the expectations. “Thailand 4.0” was developed under this macro model, with the objective of promoting the top ten target market industries with a new economic model.