Mohammad Hazrati, the export manager at Iran Khodro Diesel (IKD), a subsidiary of IKCO, told Azerbaijan’s Trend news agency on Wednesday that IKD and Daimler AG have started preliminary talks to produce new engines following the recent nuclear deal and the ensuing lifting of anti-Tehran sanctions.

Hazrati noted that Iran Khodro and Daimler AG have been partners since 1969, adding that this relationship was interrupted when the German company left Iran during the period of sanctions.

Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany- also known as P5+1 or E3+3) on July 14 reached a conclusion over the text of a comprehensive 159-page deal on Tehran’s nuclear energy program.

The deal, also known as the Joint Comprehensive Plan of Action (JCPOA), would terminate all nuclear-related sanctions imposed on Iran after coming into force.