Daimler AG (NYSE:DAI) is set to report its earnings today. Although a full blown bloodshed is seen in the auto industry in the immediate trends, Daimler seems to have chartered out a territory of carving a long term strategy to grow eventually as it made some bold strides this quarter to forge some new ventures. It agreed to buy 10 percent of Russian commercial- vehicle manufacturer OAO KamAZ. Stuttgart, Germany-based Daimler, competing with Volvo AB and Fiat SpA’s Iveco unit for the KamAZ holding. Daimler has been keen to enter Russia’s truck market, Europe’s largest, which Daimler has estimated may expand by about 20 percent over the next two years. Russia’s economy may be in recession, its first since 1998, with growth missing government forecasts of 6.8 percent this year, Deputy Economy Minister Andrei Klepach said.“We want to establish a strategic partnership,” Andreas Renschler, said head of Daimler’s truck unit. “The crisis will be over and emerging markets, especially Russian, will play a major role.” The agreement makes Daimler an exclusive partner and gives it a board seat and the right of first refusal on any additional shares sold by KamAZ, Renschler said. Daimler will pay another $50 million in 2012, as long as KamAZ meets earnings goals. The companies plan to distribute Fuso light trucks in Russia starting next year, and will consider producing Daimler trucks locally.

In another move, Daimler & Beiqi Foton Motor Co. agreed to form a $929Mn venture in Beijing to make trucks and engines. Daimler and Foton, China’s biggest commercial-vehicle maker, will each own half of Beijing Foton Daimler Automotive Co., Foton said in a Shanghai stock exchange statement. The partners will form the venture in August, start engine production in 2011 and begin making trucks in 2012. Foton more than doubled third-quarter profit to 38 million yuan after boosting vehicle sales by 13 percent in the first nine months. The Beijing-based company aims to more than double annual unit sales to as many as 1 million by 2010 from about 400,000 in 2007. In early December, the company had announced plans to issue $1.3Bn of three-year bonds.

About a month ago, Management decided that the company will invest in a new stamping facility for Mercedes-Benz. The stamping facility for exterior panels for Mercedes-Benz trucks and the successor generations of Mercedes-Benz passenger cars A-class and B-class will be built in Kuppenheim and be part of the Mercedes-Benz plant in Gaggenau. The total investment in the stamping facility will amount to around EUR70 million. The management has also confirmed its desire to sell its 19.9% stake in Chrysler.

Despite all the ambitious plans, there is no doubt of the company unveiling losses this quarter. Fitch has downgraded Daimler and said it expects the car company's performance for this year and next to be much weaker than previously expected. The agency cut Daimler's senior unsecured ratings by one notch to "BBB-plus," or three notches above speculative, or "junk" status. "Fitch has reassessed its view and revised its forecasts for Daimler in 2009 and 2010 and now expects the company to exhibit much weaker profitability and cash generation than previously anticipated," the agency said in a statement.

Disclosure: The author does not own any of the stocks mentioned above.