BERLIN (AP) -- Daimler AG says it has signed an agreement with Kamaz Inc. of Russia to cooperate in producing commercial vehicle axles -- deepening the two companies' partnership.
Daimler said Friday that a memorandum of understanding calls for the companies to start by investing euro50 million ($66 million) in axle production in Russia.
The resulting joint venture will supply axles to Kamaz and to another partnership between the two companies, Mercedes-Benz Trucks Vostok.
Daimler has been strengthening its ties with Kamaz over the past year. It has been eager to enter the Russian truck market, citing its potential for strong growth.
Daimler and the European Bank for Reconstruction and Development between them hold 15 percent of Kamaz.
Daimler said Friday that a memorandum of understanding calls for the companies to start by investing euro50 million ($66 million) in axle production in Russia.
The resulting joint venture will supply axles to Kamaz and to another partnership between the two companies, Mercedes-Benz Trucks Vostok.
Daimler has been strengthening its ties with Kamaz over the past year. It has been eager to enter the Russian truck market, citing its potential for strong growth.
Daimler and the European Bank for Reconstruction and Development between them hold 15 percent of Kamaz.
