Just the Facts:
Foton readies an assembly plant in Mexico to produce up to 50,000 vehicles a year.
The plant will be an expansion of a current facility where the Chinese firm produces tractors.
Foton's projections are that by 2020 it will become the largest commercial vehicle manufacturer around the globe.

MEXICO CITY — China's Foton Automobile Co., a member of the Beijing Auto Group and a joint-venture partner of Daimler AG, will begin production of light trucks in Mexico this year, according to its Mexican unit CEO Bernardo García-Manzano. The plant will be an expansion of a current facility where the Chinese firm produces tractors in the central-eastern state of Veracruz near the Gulf of Mexico.

As a first step, Foton will invest up to $15 million to prepare the facility for the production of light trucks. The company expects to undertake a second stage where a variety of trucks, including pickups and sport utility vehicles, would be built and exported to the U.S. and other countries in South America. By then, the annual production volume could be as much as 50,000 units.

Foton has been in Mexico since 2008, but primarily as a distributor of agricultural vehicles. Last year, it sold 1,500 units, but the company feels confident light-truck demand will be much higher, and that customers will give its brand a chance.

Mexico is viewed as the pilot project for yet more Foton plants planned for Brazil, India, Thailand and Russia. The Chinese maker has great ambitions. Earlier this year, it unveiled plans to invest $3 billion in China, to produce large trucks, SUVs, CUVs and MPVs for both commercial and passenger use.

Earlier this year, Foton won approval from the Chinese government to form a $900-million truckmaking venture with Daimler.