Germany's Daimler Says to Resume Truck Business in Iran

Germany's Daimler Says to Resume Truck Business in Iran

TEHRAN (Tasnim) – A senior official with Germany's Daimler AG, the maker of Mercedes-Benz cars, said the company’s truck business is returning to Iran following the removal of anti-Tehran sanctions.

Daimler Trucks head Wolfgang Bernhard said on Saturday that "there is a huge demand for commercial vehicles in Iran" and that "we plan to quickly resume our business activities in the market there,” AP reported.

He added that the Stuttgart-based company has so far signed letters of intent with local partners Iran Khodro Diesel and Mammut Group to arrange a "comprehensive re-entry" into the Islamic Republic where Daimler started doing business in the 1950s.

Bernhard went on to say that a joint venture for local production of trucks, under Daimler's Mercedes-Benz brand, will be launched in Iran under the cooperation documents.

The two sides will also cooperate on engine production and establishment of a sales arm, he added.

Bernhard further said that plans also include setting up a representative office, and sales of Daimler's Mitsubishi FUSO brand trucks in cooperation with Mayan, part of the Dubai-based Mammut Group.

Daimler's business in Iran started in 1953 and it sold up to 10,000 vehicles a year, but was interrupted from 2010 to 2016 by the sanctions.

The sanctions were lifted after Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 reached an agreement on Iran’s peaceful nuclear program and started implementing it on January 16.

Most Visited in Economy
Top Economy stories
Top Stories